Turo business model - The complete analysis!
Turo - How It Was Initiated?
The inception of Turo commenced as RelayRides in 2010. After a span of five years, a rebranding effort was undertaken, and the name Turo was adopted. Turo operates as an American-based peer-to-peer car rental platform, establishing a connection between car owners and riders through an online platform.
A Role in the Sharing Economy
Turo became an active participant in the sharing economy following the presence of entities like Airbnb and eBay. However, it distinguished itself as a car-sharing marketplace within this landscape.
Turo's Participation in the Sharing Economy
Turo can be likened to an "Airbnb" within the car rental sphere.
Initial Requirements for Renting from Turo (previously RelayRides)
In its initial iteration as RelayRides, renting a car necessitated the presence of an in-car device encompassing GPS monitoring, remote unlocking, and smart card entry.
Partnership with General Motors
In the year 2012, a collaboration between Turo and General Motors facilitated the unlocking of GM cars using mobile phones, eliminating the necessity for additional technological integration.
Target Audience of Turo
For Hosts on Turo
Hosts engaged with the platform by furnishing their personal information. The onboarding process typically took around ten minutes. Hosts have the option to list various vehicle types, such as trucks and sports cars. Sign-up and monthly fees are not levied by the platform.
Hosts possess the authority to establish ground rules and modify car availability for renters. If any issues arise, they can be addressed either by the host or the platform.
Turo permits the renting of a diverse range of cars, with the host managing their vehicles' availability. However, hosts are responsible for delivering and retrieving the vehicle on behalf of the renters.
A fee ranging from 10% to 35% is charged by Turo for the convenience provided to hosts. The exact fee varies depending on the chosen Turo protection plan.
For Renters on Turo
Upon signing in, renters can select their preferred vehicle by specifying location and dates. If accepted by the host, renters can proceed with the rental process. Renters also have the flexibility to cancel the rental up to 24 hours before the trip's commencement. In this scenario, payment is made both to the host and the platform.
Assistance Provided by Turo
Turo caters to both hosts and renters, offering various plans and policies to support their needs. Commissions are charged by Turo from both parties, as it serves as an online car rental platform. Customer support is readily available, ensuring timely assistance in case of any issues.
Turo's Value Proposition
Customer Support
Turo provides customer support comparable to the level of service offered by Airbnb. A responsive team addresses user issues and concerns effectively. Over the past 12 months ending in June 2022, the resolution of approximately 666 complaints is indicative of Turo's commitment to customer satisfaction.
Insurance
Hosts are afforded the choice to opt for the most suitable protection plan. A standard plan includes $750,000 in third-party liability insurance from Travelers. Turo extends 24/7 roadside assistance for all trips arranged through the platform. Every plan inherently encompasses insurance coverage, physical damage reimbursement, and roadside assistance. Furthermore, a range of plans are available for hosts to select from the platform.
Key Activities of Turo
App Maintenance and Platform Development
Turo continually refines its app experience, ensuring a bug-free platform and enhancing user experience, despite being a peer-to-peer car rental platform.
Marketing and Advertisement
Extensive marketing and advertising initiatives are essential to maintain Turo's presence on digital platforms, where user searches are frequent.
Research and Development
Turo diligently researches prevalent market trends, enabling the formulation of future business strategies.
Customer Support
The provision of superior customer service is an imperative for every business. Turo addresses all hurdles and queries users might encounter, solidifying its commitment to user satisfaction.
Turo's Revenue Generation Channels
From Renters
Turo's primary revenue stream comprises commissions from renters. The imposition of these commissions varies based on factors such as the selected vehicle, protection plans, and other variables. Commission charges are applied during the checkout process, with dynamic variation across each trip.
From Hosts
Hosts are subject to a fee ranging from 10% to 35% per reservation. The exact percentage is contingent upon several considerations, including car model, location, and duration of the trip.
Conclusion
Having functioned for over 12 years, Turo has facilitated car rental listings and arrangements across more than 7,500 cities. The platform garners revenue primarily through commissions. Beyond the convenience it offers, Turo distinguishes itself through user support and safety measures, propelling it to a prominent position in the market. This contributes to enhanced customer satisfaction and positive reviews.
Turo's innovative business model has effectively disrupted the conventional car rental industry, capitalizing on a desire for change among users. Turo has emerged as a transformative force. Thus, this overview should quench your curiosity regarding the Turo business model.