Are you interested in building a car rental marketplace? Moving forward and establishing a full-fledged business in this niche requires a lot of awareness, which is somehow lacking among many modern entrepreneurs. Entrepreneurs’ primary reason for exploring this field is its growing popularity. The car rental marketplace offers swift transactions and reduced service costs, advantageous to both users and providers. Before understanding this business in detail, let’s get into the basics;
What Is A Car Rental Marketplace?
It is an online platform that permits the users to rent out a car whenever they require and that too of their own choice. The services being offered via an app are very much authentic and budget-friendly. The interface is flawless, and the services provided are attainable. One can check the real worth of car rental market by having a look at the statistics below;
- By 2022, the global car rental market is expected to reach about $125 billion worldwide.
- The profit generated by the car rental marketplace is estimated to reach $83.02 billion in 2022.
- The Market size value in 2021 was around $103.14 billion.
- The compound annual growth rate (CAGR) of 8.23% is predicted for the year 2022-2026.
- The P2P Car Rental Marketplace Model is projected to expand by 700% in the upcoming eight years.
- The approx. market volume of $113.90 billion is projected by 2026.
- Nearly 604.2 million users are expected by the end of 2026.
- The car rental marketplace is expected to generate total revenue of 71% via online sales by 2026.
- Currently, the user penetration is about 5.6% and is expected to strike at 7.7 % by 2026.
- About $193.90 is the average revenue per user amount.
- It has been predicted that most of the revenue during 2022 will be generated in the United States i.e.$25,590 million.
- It is expected to cover regional horizons like North America, Europe, Asia Pacific, and Latin America.
Types Of Car Rental Marketplaces
B2C car rental marketplace: In this type of car rental marketplace, the businesses rent their cars straightly to their customers. Such a prototype is immensely adaptable as it offers round trips (back and forth), unilateral drive from one station to another and free-floating trips(no fixed station).
P2P car rental marketplaces: In this type of marketplace, the car owners share their vehicles with the individuals who are in need of it. This type of renting process exists for a brief period of time. That’s probably the best way to make money. The most appreciable thing is that there is no need for any arbitrator.
For better understanding, let’s have a deeper look at the business models;
Business model of P2P Car Rental Marketplace Model
This business type has three types of models i.e., business owner, car owner, and Rentee. An outline of this P2P model is shown below;
- There is a proper registration and comprehensive listings of cars by the car owners.
- The business owner probes the listings and correspondingly approves as well as rejects them.
- All the approved listings are flaunted on the site and are visible to all the visitors, whereas the rejected ones are sent back for reassessment.
- These listings are browsed by the Rentees from where they can choose the rental date and time with the help of a reservation calendar.
- A certain amount of rental fees is paid by the Renters to book the car.
- The commission from the rental fee is taken from the business owners while the remaining amount is assigned to the car owner.
- There is a proper conveyance process established between the Rentee and the car owner.
- There is adequate verification of the vehicle, and if something inappropriate is seen then the business owner is informed about the same.
- The damage costs will be deducted from the security deposit, whereas if the vehicle is in perfect shape, the entire money is returned to the business owner.
Revenue Model of P2P Car rental marketplace
The car rental marketplace owner removes a small portion of the commission from the total rental fee charged by the car owner.
In the car rental marketplace, the owner can charge individuals for exhibiting their cars in featured paid listings.
The owner curates various subscription packages to create multi-tier subscription packages for the consumers. Additionally, several benefits and perks are provided to the consumers for the charges offered every month.
There is the availability of third-party product promotions by paying the owner a certain amount of money.
The add-on services like vehicle cleaning, vehicle insurance, on-road assistance, etc, are provided by the marketplace owner.
Features For Rentee
Advanced Booking Calendar:
There is the availability of the advance booking through the calendar, where there are magnificent time and date selection components. Multiple setting criteria are available such as minimum rental duration, buffer state for vehicle upkeep, and controlled delivery period. There are dedicated alternatives for rental period start and end dates with exceptionally high-octane settings. These options are essential as they accurately compute the timing of the car accessibility to the Rentee on the required date.
2. Search Filters:
Users are a fan of seamless search filters. They want a convenient element to get through the whole website. Some of the top class features are choosing the car type, distance, fuel type, pricing, servicing, engine, car type, etc. The add-on attributes of the P2P car rental marketplace for rentees are GPS tracking and four wheel drive(4WD) that boost all the wheels equivalently. These search filters help the users get what they want in a quick time, and also it has been successful in lowering the bounce rate.
3. Compare Option:
One of the most futuristic qualities that are not being allocated by most of the car rental websites is the comparing factor.This comparison option is an advanced feature that not many marketplaces provide. At the time of renting, it aids the rentees to have an expeditious differentiation of consumer-chosen vehicles in a table format. This car rental marketplace has the ability to flaunt the correlation of up to four vehicles. This provides ease to the users by helping them out with the prime choices to upgrade the customer experience.
4. Extended Rental Duration:
There are times when rentees require the vehicle for extra days. For that, they need to contact the car owners. Now, it is nearly impossible for the owners to manually pick up the calls. Therefore there is a dedicated feature that comes in addition to the advanced booking calendar. Here, the user can see if the vehicle is available for the forthcoming days or not. And if the dates are available, then the rental duration can be extended.
5. Chat Support:
To solve customers’ problems, the chart support feature is very necessary. In addition to the chat support for the rentees, the problem-solving characteristic is also important. The users really appreciate real-time technical support. To obtain the trust of the users, it’s better to build comprehensive chat support that has everything related to the FAQ and customer support services with instantaneous chat availability.
Features of Car Owners
- Income Calculator: The fundamental thing that the car owner should know about the car rental marketplace is the rental income. When the user visits the income calculator page he/she has to fill up the details like car type, model no., fuel type, manufacturing year, engine type, etc. On the completion of filling up the particulars, an estimated income is generated. This amount is calculated on the basis of the algorithm based `behind the income calculator.
- Buffer Period and Minimal Rental Duration: During the buffer period, the vehicle is kept in the examination and maintenance mode. Within that time frame, the vehicle is not allowed to rent his/her car and therefore must abide by the buffer time period.Another thing is that the car owners should specify the minimal rental duration while publishing their listing in the marketplace. This enables the rentees as well as the owners to maintain a fixed rental cost per booking.
- Media management options: The car owners are facilitated with services like removing as well as uploading the media files from the listings. Now, these files can be in the form of high or medium quality, and the image format could be either png, jpeg, TIFF, etc. The other media management option is the file selection format such as “PDF,” where all the conditions and terms are stated.
- Ranking optimization feature: Every car owner wants their car to be seen by most of the users. So, all they want is for their vehicle related details to rank at the top in the search engine results page every time the user searches for the same.SEO is the best option for car owners to publicize their vehicles in front of a vast audience. It captivates their minds and compels them to rent out the same. Other ranking features like alt tags, optimized images, slug optimization, dwelling time, etc., are essential to rank it at the top position.
- Order-related attribute: The car owners have the choice of enabling and disabling the listings at any point in time. They have the option of inbuilt order status, history, payment details by the rentees, direct product delivery charges, and discounts on products.
Business model of B2C Car Rental Marketplace Model
In the B2C car rental marketplace model, the business owners list their commercial vehicles for rent. Here, there is a disadvantage for the customers, as they don’t get to interact with the main party. The technical support service providers all the communication-related stuff. The vehicles are made available to the consumers for a brief period of time. They also charge hefty rental charges with fixed amounts for an increased time.
Monetize a car rental marketplace
The process of earning revenue from the car rental marketplace needs adequate precision. The core thing is that no compromise should be made on the client’s service. Hence, balancing both things is the hardest part. Now, if the application already has an inherent payment option from where the transaction takes place, then the commission is the only way to take in the revenue. The commission-based monetization method is highly expandable and can somewhat work to any extent. The other benefits of monetizing a car rental marketplace are obtaining extra charges on delivery, protection plans, supplementary mileage, etc.
Cognizance of car rental marketplace development is required to check the end-user demands. Various factors are responsible for the popularity of the car rental marketplace, such as diminished carbon impact leading to a greener environment and enlarging global preference for a basic lifestyle. This Car Rental Marketplace Model has been exposed to massive success and will continue to do so in the upcoming years. The car rental marketplace does not require a pricey outlay. One just needs to know where the investment needs to be done with appropriate tech stack and amazing custom designing.