How To Build A Taxi Sharing App Like Turo
The Peer to peer car sharing is an excellent way to make money by renting your car for those who need it.
It’s certainly a win-win approach for car owners as well as travellers because you get the money first and get an adventure second. You’re also going to get what I’m talking about by adding significant traffic reductions and reduced pollution, CO2 emissions and other environmental benefits.
In particular, in European countries, the car-sharing market is still in development.
However, the future and potential growth are far-reaching.
The size of the car-sharing market will exceed $16.5 billion by 2024, according to Global Market Insights. Promising sounds. Do you want to change things and develop your city or country’s car rental app? The time is now to begin!
You see, in today’s world ride-sharing has transformed and has taken various forms in 2020. You can choose a service that meets your needs from Grab to Uber and from Turo to BlaBlaCar. No wonder, the market for ridesharing is growing and exploding with brand new startups.
How to launch a rideshare application?
Read the article to help you with your idea and learn how you can launch a ride-sharing app just like Turo.
Industry Insights About the Car Rental Industry
The car rental industry is expanding significantly over the years with increasing user needs. Although transport is a part of everybody’s routine, car rental services are certainly high. It is not only big companies that are in fact the car rental industry. The on-demand car rental industry is currently one of the largest yet thriving industries.
- The global car rental sector is expected to generate revenues of $1,898 million by 2021.
- An annual growth rate of 20.75% from 2021 to 2025 is expected to show revenue.
- If the projected volume of the car rental industry grows to the CAGR of 20.75 per cent by 2025, it will be $4.036 million.
- In 2021, the user penetration is expected to reach 2.8% and by 2025 to reach 5.3%.
- It is expected that the average revenue per user is $48.15.
- If we compare the statistics globally, a significant US revenue segment of about 18.223 million dollars is generated in 2021.
What is Turo?
Turo is a company that shares peer-to-peer autos. Previously referred to as Relay Rides, Turo offers car owners additional cash through the rent of their vehicles and offers a fast and comfortable way to rent a car.
Unlike Uber and Lyft, Turo is more akin to traditional car rental than a ride-hailing app. It is ideal if you’re travelling longer than planned – like this upcoming interview with people from outside the city or exploring a new city yourself. Turo can also be cheaper than traditional car rental companies and has hosted for drivers under 25 years of age.
Turo offers something for every taste and budget: Turo offers you something for yourself, whether you want a luxury car to enjoy a stylish holiday or a cheap, yet reliable vehicle. It is available in the United States, Canada, the United Kingdom and Germany.
Turo vs Traditional Rentals
Let’s weigh its positives and negatives against traditional rentals if you’re still not sure if building an app like Turo is worth it.
One of Turo’s biggest benefits is that drivers under 21 are offered rentals. Although traditional car rental services usually do so in the U.S., large insurance fees are paid. If you aren’t too picky about a car model and year, Turo can be also cheaper overall.
It’s perfect for short budget trips. This can of course vary in accordance with the area in which you live, so be sure to compare prices before shelling your hard-earned funds. Renting a car is also a favourite for Turo – you will have to pick up your rental vehicle yourself with most conventional car rental services.
The return of the car could be a disadvantage for Turo. If you take a long one-way trip, say to move to a new town, the private owner will probably not agree to collect your car for a hundred miles without paying a large price. On the other hand, traditional rental services could be located elsewhere in your city/town destination, making it easy to drop off when you use them.
What is Turo’s Business Model?
P2P Car Rental model is based on the cooperation between car owners and renters. Car owners list their cars on the platform, indicating all the car’s make, model, colour and gearbox. Forward-looking renters may look up and rent the one which best suits their needs. Cars are available for rent for a couple of hours, days or weeks. It is a great way for car owners to make money if their car is idle for a long time.
Many popular platforms for P2P rental cars have found a car idle around 22 hours daily, on average. Getaround, a popular platform for car rental, says car owners can earn up to 10,000 dollars a year using its website. Most P2P car rental platforms offer coverage on all rental facilities and round-the-clock assistance to attract more car renters and owners.
How Does Turo Make Money?
P2P car rental sites mainly make money by charging a nominal fee for each reservation of car rental, which differs from platform to platform. Banner ads and on-premises promotion of cars may be other common revenue generation channels (to appear at the top of results).
Now that we are discussing the business model of peer-to-peer car rental platforms, look at the characteristics that are crucial to the competitiveness of a car rental market.
While car owners share their cars with travellers, they also share their income with Turo. The company tells me that it takes 25% of the travel price to cut: the owner would earn $441.75 and Turo would earn $147.25 if he returns to the example of that week of GMC rental.
Now the average car owner is making $600 a month actively available via Turo. We can estimate that Turo will make approximately $200 per car owner per month from that figure.
Features List Of a Taxi Sharing App Like Turo
- Searching for a Driver
- Receiving Real-time Notifications
- Gps and Location Determination
- Booking Rides Ahead of Time
- Ability to Communicate
- Cancellation Policies and Methods
- Account Login
- Accept and reject rides
- Details of the trip
- Navigation Systems
- Contact Passengers
- Receive Payments
- Compensation structure
Technology Stack for a Taxi Sharing App Like Turo
Application and Data
- Apache Tomcat
- Google Analytics
- Amazon SeS
- New Relic
- G Suite
Find Vetted Teams For Your Project With GoodTroopers
Suitable Team Structure to Build a Taxi Sharing App Like Turo
- Project / Delivery Manager
- Android, IoS, Front End and Back End Developers
- UI/UX Designers and Graphic designers
- Quality Assurance Testers
Tips For Making Your Turo-Like App A Success
- Keep Your Eye On The Market Leader
Even though your car rental app is brilliant, you need to learn how to succeed from your competitors in the competitive market. Hundreds of automotive rental applications are already available, such as Turo, with record sales of 153 million dollars by 2020.
Make sure you have a list of market titans before you build an app. Test your app and analyse your weak and strong points thoroughly. You can develop the best app on the basis of your survey.
- User Security Issues
How do car owners ensure that they rent the right car? The car rental company needs accurate information on who and where to rent the car to prevent car loss. It’s a great way to integrate the GPS in order to overcome these problems and to track your car.
- Data Collection Could Be A Challenging Business
The collection of information has become the essential requirement of modern apps to help users determine the essentials. App owners can understand the habits of users by collecting the information and implementing the ‘right strategy.’ Therefore, make sure that you follow the right strategy while developing a car rental application.
- Know About All The Rental Solutions Available
- Self-driven car rentals: The user will rent a car and drive it himself in this category. Based on the car type you choose to rent and the hours you have rented a car, the user is charged.
- Company car rental: The purpose of this type of car rental service is to give business customers convenience by providing them with well kept and polished cars for business applications.
- Outstation Car Services: Users can book a vehicle to other cities and countries for a longer period.
- Local car rental: Users can rent an hourly, half-day or full-day car rental service. There may also be pickups and drops at the airport.
- Decide In Advance How Would You Monetize The App
The car rental services have been designed to provide cars for various purposes from daily communication to the use of luxury. That is why the company has now reached the wind. The key question now, however, is how companies can produce good revenues and work efficiently, without allowing their income models to fail.
- Renting Your Own Car Fleet
This is one of the direct ways to make money by renting the users your own car. The company must buy its own cars and assign them to different drivers. You can receive the basic fee for services from customers. The drivers are paid monthly or on the basis of service.
- Commission Based Earnings
This is something else, where car owners can have a platform to list and connect users in their cars for rental services. There is a certain amount in the form of service fees from the income of car owners for the app developers. Turo uses this kind of strategy of monetization.
If you finally decided to begin with the car rental app, consider first your mission as what you are developing and what you are trying to achieve via this app, not what you are developing.
Hopefully, with all the essential details for building an on-demand car rental app, such as Turo, we have served you well. Launching a car rental company is a brilliant idea, but remember that there are already many big players in the car rental market. However, with increasing demand for car rental, a strong foothold in the market and success can easily be established with a correct construction.
Since car rental companies have a higher level of scalability and greater scope, it makes real meaning to employ an app development company to start a technologically advanced application.
Frequently Asked Questions To Build A Taxi Sharing App Like Turo (FAQs)
A1) Some successful apps like Turo are Rentworks, TSD Rentals, Navotar and Easy Rent Pro among others.
A2) The possession of the code is held completely by the owner of the code though the owner will need a team at the backend to ensure smooth functioning of the app.
A3) Most ride sharing apps use the following methods to make money:
1) Nominal Fee
2) Commision from Car Owners
3) Giving Own cars for rent
4) Promotions and Ads