Picture this: you’re in a new city, eager to explore, but car rental agencies are either too expensive or inconveniently located. Enter Turo, the game-changing peer-to-peer car-sharing platform that has taken the travel industry by storm. With its user-friendly app, innovative business model, and impressive revenue growth, Turo has established itself as a trusted and profitable player in the car rental business.

At its core, Turo business model is like an Airbnb for cars, connecting car owners with potential renters through its intuitive mobile app. Turo’s user-friendly mobile app enables car owners to list their vehicles for rent and allows potential renters to search for and book available cars.

Turo achieved unprecedented U.S. sales growth, with April 2022 witnessing a staggering 419% increase compared to 2019.

This exponential growth in revenue and profitability of Turo revenue growth speaks volumes about its effectiveness as a business venture. Its success has also caught the attention of investors, as evidenced by its funding rounds and recognition on platforms like Crunchbase and daily news publications.

Check here to get an app to Turo!

What is Turo?

Turo, formerly known as RelayRides, was founded by Shelby Clark a Harvard Business School student on 12 August 2009. It is currently led by CEO Andre Haddad. The company is headquartered in San Francisco, California, U.S., and is owned by IAC Inc.

Turo, the peer-to-peer car-sharing platform, offers Turo fleet management services, enabling car owners to efficiently manage and monetize their vehicles for a potential source of income, despite not having publicly traded stock. Turo, a peer-to-peer car-sharing company, has been operating for over 14 years with around 330 dedicated employees.

With a solid track record and positive user experiences, the Turo car rental business has established itself as a trustworthy platform, backed by its stringent verification processes, user reviews, and comprehensive insurance coverage. 

Turo Statistics, User Count & Milestones (2023)

Turo, as of 2021, had 14 million users and 450,000 vehicles available in 56 countries and over 5,500 cities worldwide, offering rental cars at an average discount of 35% compared to conventional rental car agencies. Let’s dive into some fascinating facts about Turo:

• In 2010, Turo expanded to San Francisco.

• By 2012, it launched nationwide in the U.S. and partnered with General Motors and OnStar for GPS monitoring.
• In 2013, Turo shifted to in-person key exchange instead of in-car and OnStar technology.

• Before 2014, Turo received $52.5 million in funding from investors like Google Ventures, Shasta Ventures, Canaan Partners, August Capital, and Trinity Ventures.
• In 2015, RelayRides rebranded as Turo and secured an additional $47 million in funding, earning recognition as one of the “hottest on-demand startups” by Forbes.
• The following years saw Turo expanding its services to Canadian provinces (Alberta, Ontario, and Quebec) and the UK.
• In June 2018, Turo announced plans for an in-car device with GPS monitoring capabilities.
• In July 2019, InterActiveCorp (IAC) invested $250 million, becoming Turo’s largest shareholder.

Turo has achieved an estimated valuation of $1 billion, having raised an impressive $450 million in funding to date.

What is the trip fee on Turo: Turo charges a trip fee that varies based on factors such as trip price, vehicle value, booking lead time, and trip duration. The fee range is from 2.5% to 100% of the trip price, with a $15 minimum, helping Turo sustain and improve its platform.

What is the most rented car on Turo: The most rented cars on Turo are the Ford Mustang, Corvette, Lamborghini, Rivian, and Turo Dodge Charger, with owners having the potential to generate an impressive $10,516 from a single listing of the Ford Mustang.

Turo offers a mobile app for both iOS and Android platforms. The iOS app has a rating of 4.8 with 211.2K ratings, while the Android app boasts a rating of 4.9 and over 5 million downloads.

How Does Turo Work: Turo Business Model?

Renting a car has never been easier with Turo, the peer-to-peer car-sharing platform that connects car owners with eager renters. Here’s how Turo works in five simple steps:

1. Browse and Book: Renters can explore a wide variety of vehicles available in their desired location on the Turo platform. From sleek sports cars to practical sedans, there’s something for every taste and need. Plus, renters can conveniently book their chosen vehicle online.
2. Pickup and Drop-off: The process is seamless. Owners and renters arrange a convenient location and time for car pickup. Owners often offer flexible options, including airport delivery or hotel drop-off for added convenience. Say goodbye to long rental queues and hello to a personalized experience!
3. Payment and Insurance: Turo handles the payment process securely, accepting various methods. While Turo doesn’t directly accept Cash App, it offers credit/debit card payments for ease. Moreover, Turo provides insurance coverage, ensuring peace of mind for both owners and renters during the rental period.
4. Check-in and Checkout: The check-in process involves meeting with the owner, background verification, and inspecting the car’s condition. It’s all part of ensuring a smooth rental experience. When it’s time to say farewell to the rented car, the checkout process concludes the transaction, ensuring a hassle-free return.

Turo also has a clear cancellation policy, allowing renters and hosts to make changes or cancel their reservations under specific conditions.

The Turo Business Model can be described by the following framework:

Furthermore, Turo’s customer segments comprise:

Hosts: Hosts are individuals who own vehicles and list them on Turo’s platform, allowing them to monetize their idle cars by renting them out to others.

Renters: Renters, on the other hand, are customers who buy a book and use these vehicles for various purposes, such as travel, special occasions, or as temporary replacements for their cars.

Turo Revenue Model: How Does Turo Earn Money?

The Turo business model generates revenue through its unique peer-to-peer car-sharing platform by utilizing the following revenue streams.

Booking Fees: Turo charges a booking fee, which is a percentage of the rental cost when renters reserve a car. For instance, if a rental is $200 and the booking fee is 10%, the renter pays an additional $20. These fees contribute to Turo’s revenue and support the platform’s upkeep. Turo does not have hidden fees, including protection plans and service fees, during the booking process.

Turo imposes a $150* charge if you don’t appear for a reserved trip.

Host Service Fees: Turo imposes a service fee on hosts for every rental transaction, with the fee being deducted from the host’s total earnings. Typically, Turo’s service fee ranges from 10% to 35% of the rental price, providing hosts with a clear understanding of the portion retained by Turo for platform maintenance and services.

Young driver fees: Turo charges young driver fees for renters aged 18-25 in the United States and 18-24 in the United Kingdom. These fees are imposed to address the higher risk associated with younger and less experienced drivers.

Cancellation fees: Turo has cancellation costs determined by the timing of the cancellation. If a cancellation is made more than 24 hours before the trip starts, a $25 fee may be deducted. If the cancellation is within 24 hours of the trip’s start, a $50 fee may be deducted.

Turo Go: Turo Go is a feature that enables hosts to remotely unlock their vehicles using the Turo app. Hosts pay a fee to use this service, and Turo earns revenue from these subscription fees.

Turo Valet: Turo Valet is an option where Turo handles the check-in and check-out process for hosts, providing a seamless experience for renters. Turo charges hosts a fee for using this service, generating additional revenue.

Turo Extras: Turo offers additional products and services to enhance the rental experience, such as roadside assistance, GPS devices, prepaid fuel options, and additional insurance options. Revenue is generated through fees charged for these extras.

Suggested Read: How Does FanDuel Make Money?

How Much Can You Make On Turo? 

Interested in becoming a Turo host? You can start by signing up and listing your vehicle and earn up to $500 to $1,000 Per Month. However, the level of profitability can vary depending on factors such as the location, demand for rental cars in the area, the type of vehicle, and the owner’s availability.

To qualify as a host, you need to meet age, license, and insurance requirements, and ensure your vehicle is well-maintained and eligible. Renting on Turo can be profitable for individuals who have a desirable vehicle, are located in high-demand areas, and actively manage their listings.

To list your car on Turo, you can sign up as a host on their platform and follow the steps to create a listing for your vehicle. Turo has specific requirements that cars must meet to be listed on the platform. These requirements include factors such as the age of the vehicle, mileage limits, insurance coverage, and compliance with safety and maintenance standards.

You can use Turo’s Calculator to estimate your potential earnings with various vehicles on their platform.

How To Start A Turo Business?

Research and Plan: Before starting your Turo business, analyze market trends and competitor strategies. Utilize resources like Turo’s marketplace data and customer reviews to gain insights into customer preferences and identify opportunities for differentiation.

According to Statista, the car rental market is projected to reach a value of $124.56 billion by 2027, indicating a growing demand for rental services.

Acquire Vehicles: Choose vehicles that strike a balance between popular models and fuel efficiency. Research. Research shows that fuel-efficient cars are in high demand among eco-conscious renters, potentially increasing your bookings and revenue.

Create Listings and Set Prices: A study conducted by Turo revealed that hosts who price their vehicles at 10% below market rates receive 5 times more bookings. Take advantage of this pricing strategy to attract more customers and establish your business in the competitive car rental market.

Provide Excellent Customer Service: To ensure customer satisfaction, prioritize prompt and effective communication, maintain cleanliness and comfort standards for your vehicles, and offer value-added services like flexible pick-up and drop-off options.

Wrapping Up

Turo’s innovative platform has revolutionized the way we think about car rentals, empowering both vehicle owners and travelers with a convenient and flexible solution. Delving into the inner workings of Turo is like unlocking a treasure chest of opportunities for entrepreneurs with the knowledge needed for extraordinary success to steer their car rental platform.

If you’re inspired by the potential of the Turo business model and revenue model, and have a vision to develop your own car rental app, look no further than Gsquare. Our team of experts can assist you in bringing your idea to life.