Turo Overview and How it Works
Turo is an online rental car service and marketplace that allows car owners to rent their vehicles out to renters and provides insurance protections to both renters and owners. It is similar to peer-to-peer car sharing platforms such as Zipcar and Getaround, but offers a wider selection of cars for rent. The company was founded as RelayRides in 2009, founded by an entrepreneur and car enthusiast, Shelby Clark. Turo was founded to provide an alternative way to car rentals by allowing car owners to rent out their vehicles to travelers.
Turo works by offering potential renters a selection of cars ranging from economy cars to luxury vehicles to choose from. Once a car is chosen, the renter can pick a rental period from the available options and confirm the rental. Once confirmed, the owner is notified and has the opportunity to approve or reject the rental. If approved, Turo facilitates payment through the platform, and renters can pick up the car at an agreed upon time and location.
Turo Insurance
Turo provides an insurance policy with liability coverage, which helps ensure that owners’ and renters’ vehicles are covered if anything happens to the vehicle. Turo also provides $1M third-party liability insurance to cover accidental property damage and bodily injury. This insurance is included in the renting fee and provided to renters in the form of a “Turo-insured” policy.
Benefits of Turo to car owners
Turo offers car owners a number of benefits. One of the main benefits is that owners can make money off of their cars when it would otherwise be sitting idle. The peer-to-peer platform allows car owners to list their car for rent on a secure platform, and Turo takes a 20-30% commission of the rental fee. Owners also receive full replacement value up to the policy limits. This provides peace of mind that the vehicle is covered if it is damaged during a rental period.
Benefits of Turo to renters
Rather than going through a traditional car rental company, Turo allows renters to rent cars privately for a cheaper price. Renters also receive complete convenience. Vehicles can be picked up in multiple locations, and once the reservation is made, the process is relatively seamless. In addition, the availability of a variety of cars allows renters to pick the one that is most suitable for their needs.
Comparison to Traditional Rental Companies
When comparing Turo to traditional car rental companies, Turo offers a more convenient, cost-effective, and personal experience. Unlike traditional companies, Turo does not charge for gas or miles driven. Additionally, Turo’s selection of cars is much wider than what traditional companies offer. Moreover, traditional car rental companies often ask customers to provide proof of insurance in order to rent a car. With Turo, there is no need to worry about proof of insurance, as Turo’s insurance contract covers the rental cost.
Considerations
When considering whether to rent your vehicle through Turo, there are a few things to keep in mind. For starters, the minimum rental period is three days. So, if you are only looking to rent a car for a short amount of time, it may not be the most cost-effective choice. Secondly, some states and countries restrict or prohibit car sharing companies from operating. Finally, And it may be more difficult for non-professional renters to find their desired vehicle, because many car owners may prefer to rent to experienced drivers.
Developments and Growth
Turo is continuing to make strides in the car rental industry, and is currently expanding its rental options and partnerships. One recent development is the introduction of Express Rentals, which allows renters to pick up and return their cars from specific locations within two hours of making reservations. This makes car rental even more convenient and cost-effective than before.
In addition to its technology-driven efforts, Turo has also partnered with national car rental brands such as Enterprise and Hertz, in order to expand its offerings. Turo has also launched an app and begun a pilot program to make it easier for drivers to find and book cars in a few test cities.
Marketing
To succeed and continue to be competitive in the car rental business, Turo has employed a number of marketing tactics. From partnering with influencers, to offering discounts to new users, Turo has worked to spread the word and entice customers. The marketing efforts have helped the company gain more visibility and attract more customers.
Turo has also conducted market research to better understand its target audiences and identify what drives them. This has enabled the company to create more targeted messaging and advertisements that are tailored to the customers’ desires and needs.
Impact
Turo has had a significant impact on the car rental industry.As the industry has become more competitive, Turo has been an innovator in creating convenient and cost-effective renting alternatives. With its technology-driven efforts, partnerships with major car rental brands, and marketing tactics, Turo has been able to compete with industry giants such as Enterprise and Hertz.
By providing value to both car owners and renters, Turo has carved out a new market segment by focusing on convenience and affordability. By making the car rental experience easier and more affordable, Turo is changing the way that people think about car rentals.
