Turo is a car-sharing app where users can book vehicles directly from their owners.
Like all online marketplaces that rely on adequate supply, the viability of Turo’s platform depends on its attractiveness to vehicle owners looking to make extra money.
To that end, the company tells owners how to optimize their ads and has even allowed some to run the multiple-vehicle businesses on the platform.
Turo also takes care of insurance to ensure both parties are sufficiently covered – a common point of frustration and confusion in the vehicle rental industry.
It also assesses a customer’s driving history to minimize instances where a claim needs to be made.
How does Turo add value?
Turo is the largest online car-sharing marketplace in the world and is available in over 7,500 cities across the United States, Canada, and the United Kingdom.
Aside from a presence in many major cities, some vehicles on the platform can be delivered for free to a customer’s location or the airport.
This widens the appeal of the service to both leisure and business-related activities.
Turo’s fees also tend to be lower than traditional providers like Hertz and Avis and some owners on the platform don’t mind lending their cars to renters aged under 25.
Speaking of owners, Turo provides a relatively painless way to monetize their vehicles.
They have the freedom to set their own prices, but the company also offers dynamic pricing based on the time of year, type of car, and location.
How does Turo make money?
Turo makes money via numerous fees that are applicable in various circumstances:
- Trip fees – this is calculated as a percentage of the total trip cost and is influenced by vehicle value, trip duration, and how far the trip was booked in advance.
- Young driver fees – for drivers in the US aged 18-25 and in the UK aged 18-24, a young driver fee applies.
- Cancellation fees – these are charged to owners who fail to show for a booked trip or violate cleaning policies.
- Miscellaneous fees – other examples where fees are collected include profiteering, maintenance policy violations, and vehicle misrepresentation.
- Guest-specific fees – these include additional distance fees, EV recharging fees, gas replacement convenience fees, and pet policy violations.
- Turo is a car-sharing app where users can book vehicles directly from their owners.
- Like all online marketplaces that rely on adequate supply, the viability of Turo’s business model depends on its attractiveness to vehicle owners looking to make extra money. It provides them with seller support and increases trust by offering insurance and verification checks.
- Turo makes money by taking a percentage of each booking and also collects fees that arise in specific circumstances.
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