How do car rental app companies make money?
Which is the largest car rental company?
How to start a car rental business?
how to create a car rental app?
You’ll get answers to all these questions and more in this article.
You are on the right track if starting a car rental business is on your mind. It is one of the most profitable ideas start compared to some transportation services companies.
However, there is great competition in the car rental market, but only because the business idea is so good.
A car rental business is one of the most challenging startups. But, if used well, it will make a mark.
Tourists and businessmen prefer to rent a car instead of wasting money on taxis. For example, when your personal car is being repaired or you have weekends planned out of town you would like to rent a car. Let’s look at some stats about the online car rental system and business.
Table of Contents
- 1 Statistics Of Car Rental App Business
- 2 Best Car Rental Apps Business Already Leading In Market
- 3 Top Trending Feature Should have in your Car Rental App
- 4 Car Rental App Business Ideas
- 5 How to Run a Car Rental Business Successfully?
- 6 Marketing ideas for car rental business
- 7 Revenue Model of Car Rental Apps
- 8 How Much Does it Cost to Build a Car Rental Business app?
- 9 FAQ’s of Car Rental App Development
- 10 Wrapped Up
Statistics Of Car Rental App Business
Image Credits: Statista
- In global comparison, most revenue in the car rental business is generated in the United States (US$22,260m in 2020).
- In 2020, the user penetration is 3.5% and is expected to hit 3.8% in 2023.
- Revenue is expected to show an annual growth rate (CAGR 2020-2023) of 3.0%, resulting in a market volume of US$67,463m by 2023.
- The average revenue per user (ARPU) is about US$234.56.
- Revenue in the Car Rentals Business is nearly US$61,738m in 2020.
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.
Top Trending Feature Should have in your Car Rental App
Schedule a Booking for the Car
After the user is done selecting a car and a model according to their choice, they can pick a time from when they would like to avail of the service. Like call-in services, the app does not make a user wait for the booking, instead, book it instantly for them.
Managing Their Bookings
All users using car rental apps can manage their bookings by confirming the time they would like to use the car. This helps in maintaining transparency and keeping a track of the upcoming bookings.
Calculating the Fare
A car rental app has its own way of calculating the price according to the car chosen and the duration it is needed by the user for. The users can calculate the fare for themselves according to the kilometers they need the car for.
With online wallets coming into being, online payments have become very easy. One can refrain from paying in cash, rather make a prepaid booking by paying through their credit or debit cards, or through one of the online wallets. The car rental service apps mostly accept online payments and provide the users with the receipts of their booking.
Efficient delivery so that users can get the car delivered to their doorstep, without having to go to the office of the service provider to pick up the car. This has made the usage of such apps even more beneficial.
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 are either paid on a monthly basis or on the basis of each service provided. 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.
FAQ’s of Car Rental App Development
- Do a detailed analysis and carefully consider the different possibilities available
- Select the business model of your car rental
- Build your company
- Register your company for car rental
- Register with the Tax Administration
- Open a business account
- Insurance application
- You can contact us using the contact form or you can also send an email to us given on our website. We’d love to share our expertise with you.
- You will get 45 minutes of free consultation
- A strict non-disclosure policy
- Free market and competitive analysis
- Suggestions on revenue models and planning
- Detailed feature list document
- No obligation proposal
- Action plan to kick starts your project.
The technology has changed the car rental industry in the following ways:
- Autonomous vehicles
- Online booking platforms
- The smartphone revolution
- Payments innovation
- Connected car technology
- Ease of use
- GPS devices