How To Develop Your Car Rental App Start-up? [Top Business Ideas in 2022]
The car rental sector is booming right now. According to the most credible reports — such as those conducted by Allied Market Research or Zion Market Research — this market will rise from $60-80 billion in 2015 to $125-160 billion in 2022, with a CAGR of 12.5%.
What’s more striking is that this expansion is seen in every region! With Europe and North America currently holding the largest proportion of the global car rental industry (up to 65%, according to Mordor Intelligence), the Asia Pacific market — led by Korea and Japan — is predicted to increase at a rate of more than 10% every year.
Combine this information with the current mobile economic trend. This brings us to a clear conclusion: if you create a Car Rental App, your firm will gain from both trends. It becomes much more enticing when you know that the development itself requires few resources and can yield a significant return on investment.
- 1 What is Car Rental Service?
- 2 Market Statistics of the Car Rental Industry
- 3 Why Has Car Rental App Business Become a New Trend?
- 4 How to Develop a Car Rental App for your Start-up Business?
- 5 Best Car Rental Apps Business Already Leading In Market
- 6 Car Rental App Business Ideas
- 7 How to Run a Car Rental Business Successfully?
- 8 Marketing ideas for car rental business
- 9 Revenue Model of Car Rental Apps
- 10 How Much Does it Cost to Build a Car Rental Business app?
- 11 Conclusion
- 12 FAQs of Car Rental App Development
What is Car Rental Service?
Many of you are unsure whether Turo is the same as Uber when it comes to developing a car rental business app. And the answer is a No!
Turo is the world’s largest peer-to-peer car sharing marketplace, where you may book any car of your choice for any destination you wish to drive. Turo allows consumers to rent a car from a large community of highly trusted car owners in the United States, Canada, and the United Kingdom. This software allows users to select from a highly curated list of nearby cars.
For both car owners and travelers, peer-to-peer car sharing is a win-win situation. On the one hand, renting a personal car is a fantastic way to make money, and on the other hand, it provides a vehicle to people who require it for a specified duration.
Turo has every car type that matches your demands, from renting a rugged truck to help you move anything out smoothly to hiring a car for lavish vacations to a vintage car for picture-perfect road trips.
Market Statistics of the Car Rental Industry
Image Credits: Statista
The car rental market is not only huge, but it is also constantly expanding to meet the needs of its customers. These services have benefited greatly as commuting has become a part of everyone’s daily routine. Car rental is a part of the on-demand car rental industry, which is currently one of the largest industries.
Car rental applications are not just created by large corporations; they are also created by small and medium-sized businesses. Because such apps are in high demand, service providers are attempting to match that demand by offering a variety of services through their apps. Let’s take a look at some statistics concerning the global car rental industry.
- The global car rental market was estimated to generate $1,898 million in sales in 2021.
- From 2021 to 2025, revenue is predicted to expand at a rate of 20.75% per year.
- If the car rental industry grows at a CAGR of 20.75%, its predicted market volume would be $4,036 million by 2025.
- In 2021, user penetration was 2.8%, with 5.3% projected by 2025.
- The average revenue per user is anticipated to be $48.15.
- When comparing global statistics, the United States generates a major portion of income, estimated to be $18,223 million.
Why Has Car Rental App Business Become a New Trend?
The rising popularity of mobile applications has transformed every aspect of business, including car rental.
Whether you’re planning an annual holiday or a city-to-city business trip, the first thing that comes to mind is selecting a means of transportation to ensure a smooth journey.
Transportation, according to a study report, is an important component of the tourism infrastructure that provides color to the whole tourism experience.
While massive public transportation is an excellent idea, it will not be practical. While you’d always want to travel according to your schedule without compromising your privacy, using peer-to-peer car rental services is the most efficient approach for planning your trip.
According to the Travel Market Report, corporate clients choose car rental services since they no longer want to travel and feel secure while taking a car to rent and driving themselves to their destination.
However, this was the situation before COVID, when corporates rented cars on weekends. Meanwhile, since airlines have canceled short-haul tours, customers will need to rent a car for a longer period of time for end-to-end business travel.
Because car rentals are simple to get, it is the best time for service providers to shift their focus to car renting app development and begin offering services on the potential platform.
How to Develop a Car Rental App for your Start-up Business?
Here are some steps you need to follow while developing a car rental app for your start-up business:
Define the objectives for developing the client’s idea into an app.
Requirement Analysis And Planning
Determine the requirements and team structure. Prepare and work on the outline.
UI & UX design
Create an intuitive app interface and design for smooth operation. The app’s success rate is determined by its UI and UX.
Consultation With The Development Team
Before the development stage, the client’s inputs are explained to the developers for final clarifications.
The developer team sets up the backend, API, database, and other stages. A prototype of the app is created to show how the app will look when finished.
The most sought-after feature of an app is its user experience. The user experience is tweaked based on the test results and the client’s report.
App Workflow Testing
The prototype’s functionality is checked for flaws and problems. Usability, compatibility, interface, performance, and security testing are examples of different types of testing.
App Deployment And Support
The deployment/launch step is critical to the app’s success. Feedback must be received, and developers will offer assistance to consumers while attempting to incorporate the flaws into the update.
Best Car Rental Apps Business Already Leading In Market
Renting a car is much cheaper and preferred to travel a long distance and is much more feasible than hiring a taxi. Today, renting a car from your phone is like a piece of cake. You will find thousands of the top car rental applications for iPhone and Android that would give a better deal with an easy booking process, even on busy days such as festivals.
Here is the list of some of the best apps in the car rental business.
Turo – Unique Car Rental App
Turo is one of the most unique applications of car rental. Sources of cars are everyday people instead of starting a business. It is something like Airbnb for cars. However, it is going very well compared to its early days. It is also only available in the US, UK, Germany, and Canada at this time.
Instead of letting their car sit in the garage, the cars for rental platform allows car owners to maximize the value of their asset (the car) into the profits engine and earn money from it.
It benefits local car rentals in the United States, Canada, the New York Times, the United Kingdom, Germany, and many other European countries.
Such car rental applications are running in more than 100 countries successfully.
Turo services are sometimes described as a car-sharing version of Airbnb.
Users can choose from a variety of vehicles, including jeeps, Teslas, and the traditional VM bus, through the online rental car program.
Turo vehicle app costs 30% less than typical car rental businesses, making it an affordable option for millennials.
- The idea is that you rent a car from an individual.
- They bring the car, you get paid to use it for a few days, then move on.
- Choose from over 800 rental cars on a one-of-a-kind list.
- Cars are booked directly from the local hosts.
- Integration of an AI chatbot to improve communication between the parties involved in the event
- This rental app allows the host to manage the car and track its performance.
- For local owners to earn more from the car-sharing marketplace, use remote technology.
- The application is even more recent, comparatively speaking.
Orbitz – All-in-one App
This app is known for its intelligent marketing strategy. Fortunately, its application is pretty decent. Like most applications all-in-one, you can book most things.
Orbitz makes booking travel from your mobile device simple and quick.
The Orbitz app makes it simple to find and book flights, hotels, and rental cars.
Joining Orbitz Rewards also allows you to earn Orbucks on hotel and airfare bookings.
You may use the Orbucks you earn to book hotels through the app.
The app allows for free cancellation of most hotel reservations to ensure flexibility.
You can create a corporate car rental app like Orbitz and generate good revenue with your application.
- It includes hotels, car rentals, airline tickets, and even some activities.
- When you book through the app, you can earn 5% and 1% on hotels and flights, respectively.
- Last-minute hotel room bookings near you can save you up to 40% on special offers.
- Choose affordable and quality rentals by searching through thousands of rental cars.
- They also have a variety of travel tools to help make things easier. It has some problems here and there, as most reputable companies in this space.
- You can use this as a car rental application only if necessary.
Kayak – App Like Expedia
Kayak is another all-in-one car rental application. Much of the same thing applies here as it did with Expedia.
You can plan an entire trip through this application.
Kayak is a full-featured travel app that can help you find everything from restaurants to hospitals to airports.
If you run a travel agency and want to get into the online cab business, this could be one of your first options.
People can use this Kayak auto rental app even when they are not connected to the internet.
It can assist with booking flights, car rentals, and business trip consultants who can plan the entire trip on the user’s behalf.
The app is one of the greatest car rental apps, and its user-friendly UI has earned it a nomination for the “Best Mobile App Awards.”
- This includes air travel, hotel, and car rental. You can do a lot of other things as well.
- Secure booking through the app without having to re-enter the traveler’s information or credit card information.
- Filter your results by location, dates, and the best time to fly.
- To get a sense of the airfare patterns, look at the price projection.
- With step-by-step directions on the device, the software guides a user through the airport.
- Share your trip plans with your friends and family.
- It boasts mobile-only deals, an organizer of the trip, step-by-step instructions for navigation and airport, countdown timers to keep track of your travel plans.
- However, it is a good application to plan a joint trip, including car hire.
Silvercar – Stressfree Car Rental App
If you are looking for a car rental experience that is stress-free, then the Silvercar application is the perfect choice for you.
It allows you to sign, reservation and drive in just a few taps. It provides support 24 * 7 on the road.
If you want a stress-free car rental experience, the Silvercar app is the way to go.
When you arrive at the airport, you will see that your car is already waiting for you; simply get in the car and drive away.
There are no counters where you may reserve a Silvercar, and there is no paperwork to fill out. In only a few clicks, you can sign up, reserve, and drive.
It offers roadside assistance 24 hours a day, seven days a week.
Every car comes equipped with WiFi, Bluetooth, SiriusXM satellite radio, in-dash navigation, and leather, heated seats to ensure a pleasurable ride.
- You do not have to wait for your journey upon arrival at the airport, you will notice your car is waiting, just get in the car and go.
- No counters to book the Silvercar and no paperwork is required.
- You will receive the fully-loaded car with WiFi, Bluetooth, SiriusXM satellite radio, in-dash navigation, leather upholstery, heated seats in all cars to make your trip memorable car.
- With only a few clicks, you can sign up, reserve, and drive an Audi.
- There are no counters, therefore there are no lineups and no waiting for your car.
- There is no documentation. In the app, everything is done in a seamless manner. When you return, you’ll even get an email receipt.
- Policies for tracking fuel and tolls that are fair.
- Returns are simple and hassle-free. There is no need for paperwork.
- Every car is equipped with WiFi, Bluetooth, SiriusXM satellite radio, in-dash navigation, leather, heated seats, and more.
Zipcar – Popular Car Rental App
Zipcar is the easiest and fastest way to rent a car. The fee for membership in Zipcar starts at $ 6 a month and tariff rates start around $ 8-10 per hour.
This is the best car rental application online. and best example of car rental businesses.
It is the simplest and most efficient method of hiring a car rental application. Zipcar provides petrol, liability insurance, mileage, and dedicated parking facilities on a daily and hourly basis.
Users can sign up for this app, select membership options, and receive a “Zipcard” in the mail.
The online user can rent a car near him and use a Zipcard to unlock it. For metropolitan regions and university campuses, this offering is versatile and convenient.
This card has gas and insurance information, so a person does not need to be concerned about coverage.
This is why we’ve included the Zipcar app in our collection of car rental apps. It’s a foreign app that’s only available in a few US cities.
- It is available on a daily and hourly basis and comes with gas and insurance as well.
- You can choose the car of your choice, either a sedan, hybrid, van and more.
- Users can book round-trip cars using check-in options.
- Putting all of the details of an upcoming trip in one place, from the car’s location to details on reservation changes
- Use the in-app unlocking option to unlock the car.
- Users can communicate with the app in a variety of languages.
- On the go, modify or extend your car service.
- It is available in many US cities and comes in a total of 26 different languages, so you can understand the application correctly.
Europcar – Car Rental App For Regions In Europe
Looking for a car rental application to rent a car or van to travel with friends? Do not worry! Europcar will help with that.
Looking for a car rental mobile app to rent a car or a van with your buddies for a road trip?
Don’t be concerned! Europcar can assist you with this.
You can not only make online reservations but also change or cancel them at any time.
With GPS directions or maps, you can hire a car anywhere in the world or in the UK.
If you’re traveling with a child, you’ll be able to select among the available child seats. You won’t have to worry about your car breaking down with 24-hour roadside assistance.
- Not only can you make a reservation, but you can also modify or cancel all day.
- You can rent a car anywhere in the UK or abroad with directions or GPS maps.
- If you have a child on board, then you get to choose a car with child seats available.
- Using maps and directions, you can easily locate Europcar rental locations.
- Sort your car according to its price and type.
- You’ll be able to instantly access your most recent search.
- To acquire access to your company’s agreed-upon prices, use the app.
- Additional drivers, young driver coverage, and a protection package are all available as add-ons to your car or van hire.
- Assume you’re accompanied by a child. Europcar has a variety of child seats available.
- With 24-hour roadside assistance, you do not have to worry about the breakdown of the car.
Hertz – Reliable Car Rental App
Hertz not only works for iPhone and Android but your iPad and iPod Touch as well. It is the fastest and easiest way to make a reservation.
Users may use the Hertz app to rent a car quickly, change a reservation, search a location, and redeem or check their Hertz Gold Plus Rewards points.
It’s one of the best car rental apps, with easy-to-use features like a “park near me” option that keeps customers engaged with SpotHero.
Users can also take advantage of special offers and discounts on car rentals, which are cheaper than traditional services.
- This application gives you all the information about your booking, no matter whether you are online or offline.
- A user can check the specifics of his upcoming reservation.
- It permits receipts to be accessed for expenditure tracking.
- SpotHero allows users to look for parking spots.
- For faster booking and check-in possibilities, the prior automobile rental service is also retained.
- Sign up for social media sites like Facebook.
- Hertz also offers special deals and helps in the fast road to its users.
- This is one of the best applications for iPhone car rental that is available for Android users as well.
CarzUP – Car Rental App With Most Fair Prices
This application allows you to compare the prices of all companies in car rental in one place. You can compare the price of the top 25 providers of car rental so you can choose the cheapest and best trip, with all the facilities at the same price.
This application helps to compare costs from all major car rental companies in one spot.
You may compare prices from up to 25 major car rental companies to choose the lowest and greatest ride with all of the amenities for the same price.
Booking a car does not necessitate the use of a credit card.
In the United States, Canada, and Europe, you can search for car rentals in any city or airport.
It helps to look at the car’s details as well as images before making a reservation. You can also add reminders to your calendar and see all of your bookings in one location.
- Booking a car does not necessitate the use of a credit card.
- Rent a car in any city or airport in the United States, Canada, or Europe.
- With just one search, you can compare costs from over 25 different providers.
- Make a note of it in your calendar.
- Keep track of all of your reservations in one location.
- No credit card is needed to book a car.
- You can find a car hire in any city or airport in the US, Canada, and Europe.
- It allows users to see the car information along with their images before making any bookings.
- Moreover, you can also add reminders to your calendar and check your reservations in one place.
Car Rental App Business Ideas
In the United States and, of course, in most developed countries of the world, the rental car business is a competitive business and any employer who intends to enter this business should ensure that they carry out depth feasibility studies and market research so that business risks can be minimized greatly.
1. Airport Pickup Cars
One way to break into the car rental business is also to start a business with airport rental cars.
One of the good things about this business is that it is a profitable business, as more and more people are getting into this trade.
2. Car Rental For Weddings
The wedding industry has continued to grow by leaps and bounds. A car rental service for the wedding is viable and profitable.
An investor interested can start successfully in any country in the world and still generate a good income.
Wedding car rental services are a niche idea in the car rental industry.
As the name implies, car rental companies, luxury car rental app, rent luxury cars for weddings preferably couples who marry.
3. Party Bus Rental
Another related car rental interesting business idea that an investor can start a business is correctly rental party bus.
A party bus also is known as a walk-on part, limousine bus, limousine bus, go party, or luxury bus is a vehicle large motor is normally obtained from a bus or conventional bus, but modified and designed to transport 10 or more people for recreational purposes.
4. Car Rental Services For Business
Starting a company for car rental business is another great idea in 2022.
Business is a car rental company that goes to the corporate organization cum corporate executives.
5. Leisure Car Rental
A leisure car rental service is one of the best car rental business ideas that an investor who is interested in owning a business portfolio in the transportation industry should consider.
It is an interesting fact that loads of car freaks go out of their way to rent cars just for the fun of it.
How to Run a Car Rental Business Successfully?
The car rental business is growing with the needs of the users. The on-demand car rental industry stands among the top-notch industries, and car rental is a part of that. Due to greater demands for such apps, the service providers are trying to meet those demands by providing several services through their apps. Let’s look at a few stats of the car rental market worldwide-
- Revenue in the car rentals segment is estimated to reach about $53,333m in 2020.
- Revenue is assumed to show an annual growth rate of 18% in 2020-2024, resulting in an estimated market volume of $105,285m by 2024.
- In 2020, user penetration is 3.6% and is expected to increase 7.1% by 2024.
- The average per user is expected to be $200.37.
- In worldwide comparison, most revenue will be generated in the US by $16,155m in 2020.
Here is a graphical representation of car-rentals globally market forecast done by Statista-
Zoom car app is one of the best examples in this industry, which started off with merely 7 cars in 2013 and now has expanded its business with over 1800 cars in service.
Marketing ideas for car rental business
Here are some good marketing ideas for a car rental business-
- Catering to corporate clients- Market your rental fleet to large companies who may need to rent vehicles for their business trips, provide local transportation to their business associates who may be coming into town for meetings, transfer display equipment for local trade shows, or to cater to any other transportation need.
- Offering excellent customer care services- Car rental companies can retain their existing customers and attract more business by offering added customer care services, such as roadside assistance, vehicle replacements, and more.
- Creating loyalty programs- you can create customer loyalty programs that offer value addition in terms of discounted packages, flexible rates, gift cards, coupons, and even awards.
- Enhancing digital marketing efforts- Social media marketing (SMM) and email marketing are two key digital marketing strategies for car rental businesses to increase web traffic.
- Positioning as a micro-niche specialist- This will help to build a distinct identity for the company as a specialist and get more referrals from auto influencers.
- Partnering with car rental marketplaces or related suppliers- Partnering with such portals helps car rental companies to drive traffic and bookings to their website in exchange for service fees.
- Organizing local automotive events- by doing this, you can get some recommendations or extra support for your brand.
- Arranging car driving and safety campaigns- This will help to create a brand image for the company and remind people of the rental services that the company provides.
- Keeping a track of competitors and other ideas
- Developing a new mobile app- If a car rental business is doing well, then it can consider developing a new mobile app named after its company. This enables customers to book car rentals conveniently with just a few easy clicks.
Revenue Model of Car Rental Apps
The car rental services offer cars and other luxuries to the users. There is a reason why this business helps the service providers generate good revenue and work efficiently without letting any glitch bother their revenue model.
Let’s look at the revenue sources for the car rental businesses:
Car Fleet of Their Own
This one requires the service providers to set up a big business with a good deal of investment.
The company has to buy cars and assign them to various drivers. They earn the base fare given by the customer for the services.
The drivers either earn on monthly basis or on the basis of each service they provide. One of the most popular apps Hertz follows this business model.
This one is a little different, where car owners get a platform under one of the car service apps and receive money according to each booking. A certain amount from their earnings goes to the app developers.
Another option available under this model is that the car owners can give their cars to a driver who takes bookings and takes the car around the city.
Turo is one such app that follows this model.
How Much Does it Cost to Build a Car Rental Business app?
The average cost of developing a car rental business app will be between $17,000 to $30,000. There are various factors like features and functionalities, which affect the cost of a car rental app development.
The platform of development and regions are also major factors that affect the car rental app development cost.You can also use an app cost calculator to estimate the exact cost of a car rental app.
Starting a car rental company with a mobile app could be the one-in-a-million chance to change your life. However, in order to remain competitive, you must continue to innovate and research. A proper mobile app business strategy is one thing that will help you achieve your goal. This plan will guide you through the entire process of launching a profitable car rental app.
This innovation is possible for your business with the use of a mobile app for car rental services. It is critical to have a dedicated team of top mobile app developers. As a result, you must hire the best mobile app development company for your business. Echo Innovate IT is an ideal choice for that purpose. Let us know your project idea with us today!
FAQs of Car Rental App Development
Typically, a car rental business begins with one or a few cars. It has the ability to progressively expand the business by adding larger fleets and a robust marketing plan. You can undoubtedly enhance sales and successfully manage the system by investing in a mobile app for your rental car business.
The idea, market research, and business analysis.
Drafting technical documents for the project.
UX/ UI design for the app.
iOS app development and Android app development.
QA sessions, bug fixing, and maintenance.