peer to peer car rental

peer to peer car rental

Peer To Peer Car Rental

Many people are under the assumption that making a profit from your car, also known as ‘hire or reward’, is illegal. And you’re probably correct, usually under your normal car insurance policy you wouldn’t be able to rent your vehicle out on a peer-to-peer marketplace such as RideLink. Insurance cover for car owners and hirers was one of our first priorities as well, given that we absolutely want everyone’s rental to be protected, and as safe as possible. So we’ve partnered with a car insurance provider to issue your vehicle with a separate policy and there’s no need to change your insurance as our policy supersedes yours for the duration of the rental. The cost of this insurance cover is included in the rental price advertised.
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Peer To Peer Car Rental

Traditional car rental companies realize that offering car sharing options is worth it as some now have their own, such as Hertz 24/7 or Enterprise Car Share. You have choices when it comes to renting a car during your travels. As with traditional rental cars, you should always check the car beforehand for damage or other concerning issues. Have a car rental service that you prefer? Let us know in the discussion below.
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Peer To Peer Car Rental

“It’s very important for us as marketplace managers to make sure people feel this is a place they can trust, that they’re not going to rent their car to some crazy person who’s going to wreck their car or steal it,” says Haddad. “On the renter’s side, we want to inspire confidence that they’re going to get great cars in good working condition, and that if something does go wrong, we’re there to assist them.”RelayRides’ growth in both revenue and profitability over the past year resulted in the current funding round led by Camaan Partners, who are also active in other marketplace companies like Lending Club, bringing the company’s total funding to $44 million. Also participating are RelayRides’ earlier investors August Capital, Shasta Ventures, and Google Ventures. In addition to planned expansion outside of the U.S., Haddad says the focus of the funds will first be on raising awareness of peer-to-peer rental and RelayRides, which is still fairly low. “We’d like it to become a quasi-mainstream activity, and I think it’s going to take a few years,” he says. “But I think we’re going to get there because it makes so much sense from an economic standpoint.”Another priority, he says, will be investment in the team and the customer service and product experience. “We want to make the RelayRides experience really stand out from a delight standpoint from traditional car rental, which I think you’ll agree is not always very delightful.”
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Peer To Peer Car Rental

Peer-to-peer carsharing is a form of person-to-person lending or collaborative consumption, as part of the sharing economy. The business model is closely aligned with traditional car clubs such as Streetcar or Zipcar, but replaces a typical fleet with a ‘virtual’ fleet made up of vehicles from participating owners. With peer-to-peer carsharing, participating car owners are able to charge a fee to rent out their vehicles when they are not using them. Participating renters can access nearby and affordable vehicles and pay only for the time they need to use them.
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Peer To Peer Car Rental

Not your typical rental car Bypass the rental counter and rent unforgettable cars from friendly locals The car you want Choose from over 800 unique makes and models, from affordable daily drivers to rare specialty cars. Where you want it Pick up your rental or get it delivered, wherever you need it, up to 35% less than traditional agencies. Rent the perfect car
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Peer To Peer Car Rental

Renters also register with the P2P site. As with car owners, registration only takes a couple of minutes, though the site will conduct a background check, looking at driving records before approving applicants. The rental process involves choosing an available car, reserving a rental date and time and providing credit card information if it isn’t already on file. At the end of the rental period, the driver replaces any consumed fuel before returning the car to its pickup location.
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Peer To Peer Car Rental

Peer-to-peer (P2P) car sharing, in which ordinary people rent out their personal cars, is the next step toward more affordable car rentals in the new sharing economy. Your car is an asset that costs you money every day in the form of loan payments, insurance, depreciation, maintenance and so forth. But think about how much time it sits unused. What if you could put your car to work, earning you money instead of sitting idle?
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Peer To Peer Car Rental

Now, as essentially an Airbnb for cars, RelayRides’ minimum rental period is one day, and the company has grown to 2,000 city locations and 300 airport locations in the U.S. Haddad says that RelayRides’ pricing on average is 35% lower than traditional rental car companies’, and that another competitive advantage lies in the diversity of vehicle options. “We have more than 800 makes and models in the marketplace–everything from a Smart Car to a Tesla, with options you typically don’t find in rentals,” says Haddad. “We don’t have to optimize for volume purchase or standardized maintenance, because we don’t own the cars. Car enthusiasts are one of our most important groups of customers, and showing them our cars is like showing them candy at a candy store.”
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In order for us to issue your vehicle with insurance cover, we require the car to have an existing insurance policy. Our separate insurance not only protects your car during the rental but on the very rare chance that damage occurred as a result of car rental, your no claims discount would be fully protected because any claims made would be by a separate driver on a separate insurance policy. So relax, we’ve got you covered.
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RelayRides’ growth in both revenue and profitability over the past year resulted in the current funding round led by Camaan Partners, who are also active in other marketplace companies like Lending Club, bringing the company’s total funding to $44 million. Also participating are RelayRides’ earlier investors August Capital, Shasta Ventures, and Google Ventures. In addition to planned expansion outside of the U.S., Haddad says the focus of the funds will first be on raising awareness of peer-to-peer rental and RelayRides, which is still fairly low. “We’d like it to become a quasi-mainstream activity, and I think it’s going to take a few years,” he says. “But I think we’re going to get there because it makes so much sense from an economic standpoint.”
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Another common concern for most car owners is what if their beloved pride and joy were damaged during a rental. We understand your concern and want to make the process of renting out your car as easy and as safe as possible. We already discussed in #1 how insurance protects your vehicle against any possible damages but our liability policy also protects you against lawsuits for injuries and property damages that may occur during the rental period, in addition to all other nasties like malicious damage, fire, theft and vandalism. What’s important to remember is, the chance of damage is very rare because we screen all our drivers and only let the safest ones hire cars on our platform.
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In 2010, RelayRides launched as a peer-to-peer competitor to ZipCar, allowing people to rent their cars by the hour while they weren’t using them, enabled by in-car access devices. The idea gained enough traction that GM partnered with the company in 2011 to simplify access to GM cars rented through RelayRides’ marketplace.
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Haddad says the average owner who lists their car on RelayRides rents the vehicle for eight to nine days in a month, and makes just over $250–which is also the average monthly cost of owning a vehicle in the U.S., including insurance, depreciation, and other costs. For this reason, 50% of owners on RelayRides are renting their only car. “What we’ve typically seen is that these owners need their cars during the week but not during the weekend, or vice versa,” says Haddad. “We’re finding that owners with only one car are often able to modify their transportation options to enable occasional rental, because the economics of renting it are so favorable.” The other 50% of owners rent their second or third cars, or are long-term travelers, and are able to rent for longer durations of weeks or months.
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We often hear this a lot, usually followed by: why don’t you buy your own vehicles like traditional car rental companies? While we are not against this practice, the reason why is very simple. Our mission is to build a community that believes in making better use of existing vehicles to reduce waste, help neighbourhoods reduce their total car ownership and still providing affordable convenient access to cars when people need them.The cost of running a car in generally can be very expensive. We are hoping to help owners out with earning money to help cover some of that cost.

Published on Jun 20, 2017 | Under Car | By michael ellis
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