AmiSight 8/16: Rental Cars Are the New Airbnb
A recent Wall Street Journal article explains how small-scale entrepreneurs are entering the rental-car market by offering their vehicles through car-sharing services like Turo, Getaround, or through their own websites. They aim to compete with established companies like Hertz and Avis Budget, but the business can be challenging due to complex logistics.
Owners face various issues, including stolen or damaged vehicles, high expenses for parking, cleaning, insurance, and financing, and the need to pick up, maintain, and repair cars. Despite the difficulties, many individuals are attracted to this gig economy opportunity, following in the footsteps of those who started side hustles on platforms like Airbnb and Uber.
Turo and Getaround have seen an increase in active hosts, some of whom manage hundreds or even thousands of cars. However, profitability can be elusive, and obtaining financing for vehicle purchases can take time and effort. Some entrepreneurs focus on specific car models to optimize profitability, while others offer a mentorship program to help newcomers navigate the challenges of the business.