Turo Gives Others a Turn at the Wheel – While You Profit
The sharing economy has moved into a new arena – one that could let you generate extra cash from your car when you’re not using it. Say hello to Turo, the sharing app that’s like Airbnb, but for your vehicle.
Much like the popular home-sharing app, Turo works by searching locations for cars that are available to rent by the day. Owners can also easily list their vehicles by entering basic information and posting a few photos. When a potential renter shows interest or books instantly, the owner receives a notification. The daily rates for rental start around $60 for more run-of-the-mill models, and can reach into the hundreds for luxury, vintage, and specialty rides. Turo takes a cut of the rates, ranging from approximately 15% to 35%. In the US, the average active member rakes in $600 USD per month renting out their car.
To ensure proper coverage for accidents and liability, the company is partnered with insurance companies Intact Insurance and belairdirect. The screening process for users is also fairly thorough, in order to ensure that your precious wheels will be well looked-after. Approved users must be registered to the Turo app, have a verified identity, meet minimum age requirements, and meet an auto insurance score criteria before they’re able to book a car.
There are many similarities between this new app and another company within the sharing economy spectrum, Uber. Essentially, both offer a way for car owners to earn extra cash during the times they’re not driving their car for personal use. However, the owners of Turo see their platform as more of a travel company, versus Uber’s position as a “mobility company”, which sees more regular and frequent use. What Turo offers instead is a way for tourists in a particular city to pick and choose the vehicles they want to get around in, at prices that are competitive with many car rental operations.
Turo is also carving out a niche by providing specialty cars to those looking for a somewhat different driving experience. Luxury and highly sought-after models such as Tesla and Porsche are fairly common listings, with daily rates averaging $200 or more. While these offer a more high-end choice for visiting drivers, local customers are also booking days or weeks with these elite vehicles. Some are for special occasions (such as weddings), while for others, a weeklong booking offers an in-depth test drive that can be used to make a final decision before taking the plunge on a pricey purchase.
With the many benefits to the car-sharing model, and a wide variety of customer types, Turo seems poised to grow. The San Francisco-based company launched its app in Canada in April of last year, and has seen significant adoption in major centres such as Toronto, Vancouver, and Calgary. As of April 2017, Turo’s Canadian fleet counted approximately 2,800 vehicles. There are as yet no listings for cars in Winnipeg, but as the app continues to expand, it’s likely only a matter of time before rentals pop up in the Exchange, Osborne, Corydon, and beyond.
