How Does Turo Work? Let’s talk!
We all know how convenient our lives have become since the inception of ride-sharing applications. Today, we are so accustomed to using these platforms that even the thought of switching back to the traditional methods of cab-booking makes us ill at ease.
For such reasons, there is an ever-growing demand for apps like Uber and Lyft – especially in the United States and Canada. Well, the demand is 100% justified due to the convenience they offer (no questions about that!), but there is certainly a problem here.
In an attempt to cater to this surging demand, many startups have come forward to start their own cab company like Uber. As a result, this has led to massive competition in the ride-sharing economy, with each company battling to win the game of one-upmanship.
However, some entrepreneurs decided to come up with off-the-wall ideas to distinguish their services from the existing ones. One such company is Turo, which has revolutionized the way people commute in today’s world.
In this blog post, we’ll be discussing everything you need to know about Turo and what the company brings to the table. Furthermore, if you’re a budding entrepreneur looking to build an on-demand car rental app like Turo, we have some guidelines for you too.
So, without further ado, let’s race into knowing more about the Turo app. Get, set, vroom!
Remember that time when you urgently needed to be somewhere, and there were no available cabs in your area? Also, those times when the cab fares were so high that you had to gaze at it twice – just to be sure? Yeah. We’ve all been there.
In such cases, you might want to rent a car instead. You’ll end up paying less than what you usually pay for a cab, and you’ll have all the privacy and freedom you need.
This was from the perspective of a rider. Now, imagine that you require a bit more cash to pay your monthly bills. You decide to get a side hustle opportunity by providing your car on rent.
In both cases, you’d love to have a platform that connects you with the right person – car owners and car riders, respectively.
And this is exactly what Turo capitalized on.
Founded in 2010, Turo is a peer-to-peer car rental application. Many people assume that Turo is similar to cab-hailing applications like Uber and Lyft, but that’s not quite how the company works. Instead of having a fleet of cars, it allows people who own personal vehicles to join their service and rent out their cars.
Thus, the company offers an exchange platform where-in the hosts list their vehicles, and the riders pay them for using the car for a set period of time.
In simple terms, it connects those who are looking to rent a car with those who have cars to rent.
Now, let’s understand “how does Turo work?” for both renters and car owners.
The first step is to create an account. You can sign up on the platform with Google, Facebook, or your email address. Next, Turo works on confirming your identity and eligibility. You’ll be asked to provide your driver’s license number, a photo of yourself, your home address, and your preferred mode of payment.
Once you’ve provided all the relevant information and identity proof, the platform will seek your eligibility by asking whether you’re at least 18. Moreover, you should have a social security number and an auto-insurance number. This verification process can take upto 24 hours or more. Therefore, if you wish to book a car, you’ll need to plan everything well in advance.
Once Turo approves your account, you can start exploring the cars and the booking options. Here’s the best part – you can choose your ride exactly as you want. This means that you don’t need to fit in someone else’s definition of a “big car.” Need a full-size sedan? Or a super-luxury car, like Nissan GT-R? Turo got you covered! You can add the date and time until you’d need the car and see all the available options near you.
Additionally, you can refine your search results as per your budget needs. It offers a price scale that ranges from a minimum of US $10 to a maximum of $250 per day. You can also choose other options such as “Book Instantly” or add more filters.
As you can see, you can choose the top-rated hosts to get the most out of this car rental service. You can check all the options listed and view the refined results. Furthermore, other filters allow you to choose certain features (Apple CarPlay, Android Auto, AUX Input, etc.), vehicle type, vehicle make, the number of seats, colors, transmission, and so on.
Once you find the car you want to ride, select the available insurance plans or decline the additional coverage. Next, you can communicate with the host and plan about the pick-up, drop-off, meet-up location, and so on. Moreover, if you’re traveling and need a car as soon as you arrive at the destination, you can request the host to drop-off the car at the airport, railway station, hotel, etc. However, this service may be chargeable.
And that’s it, quite literally. Easy, isn’t it? All you need to do next is meet the host at a pre-decided location, show your valid driver’s license, and viola! You’re all set to drive off and explore.
Now, let’s get you the answers to the question, “how does Turo work for car owners?”
Although the market varies from place to place, hosts can earn a good amount of money if they make this a side hustle. The average host earnings in Los Angeles was $6,753. Indeed, that’s a great amount!
Thus, if you want to make some extra money by renting out your car, Turo can be your best bet.
First, you’ll need to sign-up on the website with Facebook, Google, or your Email ID. Once you’ve registered, select the “List Your Car” option from their website. Next, the platform prompts you to get your license plate number and some high-quality pictures of your vehicle.
Once you’ve got everything ready, you can click on the “start” button. A form will appear thereafter, which has several fields. You’ll be required to enter the location where your car is located, along with other information. This includes your profile picture, mobile number, driver’s license number, and the availability, details, and photographs of your vehicle.
Of course, not to forget – you can upload your goals too.
Once your profile and car details are approved, your vehicle will be listed on the Turo platform. Soon after, you’ll start receiving notifications related to your bookings and requests. You can confirm and decline the trip and get in touch with the drivers.
Once the booking has been made, you can coordinate the date, time, and place of the meeting with the driver. Once you’ve checked their license, you can send them on their adventure.
Well, you can quit your worries about your vehicle as Turo offers coverage of up to $750,000 in liability insurance. Additionally, it provides contractual protection for theft and damage, and 24-hours-seven-days-a-week roadside assistance throughout the trip in the United States.
Once the driver has completed his ride, meet-up at the decided location and check thoroughly whether everything is in order or not. Once you’re satisfied with the condition of your vehicle, you can give them a high-five and head home.
Here’s a short video clip that would tell you how it actually is to be a Turo host.
So, this was all about how Turo works for both renters and car owners. No matter what your goals are on the platform, make sure you rate the users to make the marketplace honest and reliable.
Now, let’s understand how Turo works from a business perspective. If you’re a startup or a budding entrepreneur looking to take some inspiration from how Turo works, you’re about to get some valuable information.
Here’s the Turo Business Model Canvas.
Check out The Business Model Canvas Of:
As you can see, the Turo Business Model Canvas has covered various aspects. However, the most significant element to know “how does Turo work?” is its Revenue Model.
Apart from the trip cost, there is a variable percentage of the trip fee shown at the checkout. This fee covers the cost of Turo’s vendor fee, customer security, and platform support. You can check out their trip cost breakdown to know more.
Here’s an example that would help you better understand. Remember the Nissan GT-R we mentioned earlier? Let’s assume the car is priced at $80 per day. This means the total amount for a week would be $560 (considering all other cost factors to be constant)
Now, if we keep the trip fee as 25% of the trip cost, the host will earn $420, and Turo will make $120.
That’s how Turo keeps its platform maintained and services running.
Well, it’s great you made it all the way till here.
After going through the article, we’re sure you have most of the answers about how Turo works. However, the first step to offer car rental services like Turo is to build a self-sustaining application. As there’s no need for a mediator to facilitate communication between the user segments, a robust application is enough for your business to reach new heights.
Thus, if your car rental application is built right, your startup can prove to be extremely lucrative. It won’t be a matter of much time for you to become the next gamechanger.
But how do you get started?
Well, when you find the right team of developers, you’re halfway there. And here’s the good news – you happen to have accomplished half your goal already!
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