How to Start a Car Rental Business

When Uber was first launched, those who operated traditional taxi services opposed this new model because it threatened the incumbent cab business.

When Turo, a new rental startup, introduced a modern business model for car renting, the same thing happened. Traditional rental giants did not like this new model. It was not good for their established businesses.

So what makes the two car rental models different?

With the traditional one, a company owner has a fleet of various car models. This approach offers predictability and safety. A user browses the different cars and picks the model they like for temporary use.

A rental car marketplace, on the other hand, allows their users to make some extra money by renting out their cars. Anyone can find a car nearby and unlock it to run their errands.

So you can use either one of these two models for your car rental business: the traditional approach or the car rental marketplace which is what new rental companies are using.

How Do You Start Your Car Rental Business? Step 1: Assess Your Business Idea

You should research your business strategy extensively. There are many competitors in the market. You have to assess their apps’ features, monetization strategy, the location they target…