On-demand apps are everywhere. The quality, speed, and convenience provided by these apps make on-demand a popular business model across all sectors. And one such sector is car rental. The growing market for car rentals in the UAE and other Middle East regions has increased the demand for car rental apps like Ekar by manifold.
However, it takes a lot of work and cost to develop app like Ekar. On an average, the cost can range from $20,000 to $300,000 or even more to develop an Ekar-like car rental app. But what are the factors that drive the car rental app development costs?
Let’s shed some light on the answer to this question in this article. But before that, let’s have a quick look at the Ekar business model that makes it a successful venture.
How Does Ekar App Work – The Business
Ekar is the Middle East’s one of the largest self-drive mobility companies, providing users on-demand access to thousands of vehicles through a click on their mobile apps. The cars can be booked by users as short-term carsharing and long-term subscription leasing.
It has a pay-as-you-drive business model wherein users have the option to pay by minute, hour, day, weekly, or monthly.
Launched in 2016 to fill the gaps in the car sharing industry, the Ekar car rental platform has so far raised over $17 million of investment and has become one of the sought-after business models in the Middle East.
How Much Does it Cost to Develop an App like Ekar?
The cost to develop an app like Ekar is more difficult to estimate than it might seem. Numerous elements have a significant impact on total cost – the app platforms, features, tech stack, team structure, and overall complexity level. Due to the fluctuating hourly rates of developers around the world, the car rental app development cost is further impacted.
With such diversity and variables affecting the car rental mobile app cost, is it impossible to predict the entire cost?
We estimate that an MVP version of the mobile app for car rentals will cost nearly $20,000 and $100,000. However, if you decide to add some sophisticated features and functionality to the app, the development cost can increase to up to $300,000 or even more.
How to Monetize a Car Rental Platform like Ekar?
To make your car rental business model successful, it is important to have a strong model for revenue generation. Here are a few monetization strategies that you can adopt for your business.
Commission Base
Car owners can list their vehicles on car rental apps. In this, the app owners receive service fees in the form of a set percentage of the owners’ earnings.
Service Subscription fee
Like other on-demand services, car rentals too can apply a nominal subscription fee to provide enhanced features to their prime and valuable customers. On the other hand, the car owners who are listing their cars for sharing can be on a listing fee basis. The car owners with a higher number of listed cars can be offered discounts and special offers.
Car Rent
Businesses can rent out their own cars to app users as a direct way to make money or lease them out to drivers and employ them. Customers who pay for the trips will earn revenue for both drivers and the business.
Learn more: https://appinventiv.com/blog/cost-to-develop-car-rental-app-like-ekar/
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