Car rental Business?
The car rental business is a peer-peer car-sharing platform that connects the renter and host. For example, if you need to travel to a specific country for work and are not comfortable traveling by train or taxi, the next best thing is a car, right? As a renter, you can easily rent a car for hours or daily basis.
As I mentioned above, who is the host of this platform? A host is a person who rents a car and charges rent from it.
It is how this platform acts as an intermediator by connecting the host and renters. To register on this website, users must be at least 18 years old, though the age varies by country.
This platform enables the host to begin their car rental business with a minimum requirement of a single car. And allow renters to choose any car they want, including sedans to sports cars.
Take, for example, the Turo app, which has categories such as deluxe & super deluxe, pet friendly, electric, and many more.
Statistics
Some statistics show that in 2021, the US car rental market generated over $28.1 billion in revenue and $40 billion globally. So, it clearly shows that the United States has the highest market value of any country.
The global car rental industry is expected to grow at a 6.7% CAGR. I thought I have covered a lot, so let's get into what it all means.
During the covid times, the car rental industry had seen a huge downfall and we all know the reason. Traveling was restricted and people were asked to stay at their houses. So it affects Traveling, aircraft, and hotel industries badly.
Now, time has passed and traveling industries were getting back on its track. We can say that it is doing good now. Every country started promoting tourism and people were ready to quench their traveling thirst and travel to their dream destinations. So, the car rental industry is hoping to grow more than its previous years. And its whole market is expected to be worth $144.21 Billion in 2027.
Analysis
An increase in disposable income and growing tourism worldwide clearly shows the demand for a car rental business.
When traveling, people prefer to rent a car rather than taxis. Renting a car made them feel like they owned it and gave them complete freedom.
The host can earn a passive and full-time income and at the same time, this platform allows the renter to book any car from affordable to expensive and has numerous segments surrounding it.
You're starting to wonder how the intermediaries make money. As an example, consider Turo. Turo is a peer-to-peer car rental platform that has been in the market for over 12 years. They operate on a commission-based model and charge commissions to hosts and renters. That is how they make money.
So I'll use Turo as an example to show how the car rental industry generates revenue. If you want to develop a similar platform to Turo, we will assist you.
So, here we are at the end. After a period of decline, demand for car rentals is gradually increasing. Soon, would try to create its previous presence. If you are in a business niche related to the travel industry, it would be a piece of great news for you.
Thank you for your engagement in reading this article. See you all in the next blog.
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