Peer-to-peer car rental
Encyclopedia
Peer-to-peer car rental (also known as person-to-person car rental and peer-to-peer car sharing) is the process whereby an existing car owner makes their vehicle available for use to other drivers in their area in exchange for payment. The term is seen as a natural extension of the person-to-person lending
model (also known as peer-to-peer lending and social lending) and a further move towards collaborative consumption
, which has become popular with the rise of social media
.
The business model is closely aligned to traditional car clubs such as Streetcar or Zipcar
, but replaces a typical fleet with a ‘virtual’ fleet made up of vehicles from participating owners. With peer-to-peer car rental, participating car owners are able to make money by renting out their vehicle when they are not using it. Participating renters can access nearby and affordable vehicles and pay only for the time they need to use them.
Businesses within this space typically apply some form of screening of participants (both owners and renters) and a technical solution, usually in the form of a website, that brings these parties together, manages rental bookings and collects payment. Increasingly, an automated form of insurance and breakdown coverage will be applied to rentals that take place through the service in order to protect an owner’s existing insurance coverage.
As with person-to-person lending
, enabling technology for this behavior has been the Internet and the adoption of geo-location-based service
.
RentMyCar – Based in Konstanz
as well as New York
, their peer-to-peer car sharing marketplace was the world's first. The service launched in May 2001. The company offered free listings of personally owned car rentals on a marketplace type platform that allows car owners and potential renters to interact with each other and to negotiate their own rental rates and terms. The company provided a Virtual Vehicle Inspection Sticker (VVIS), a master keycard and personal car sharing search engine, and a business method using neighborhood managers. About 800 vehicles were offered for rental in its first two years.
rent'n'roll - Based in Hamburg, this company offers p2p-carsharing throughout Germany. It's possible for users to rent cars via an iPhone
app. Rent'n'roll runs a scientific project in Geislingen
with the University of Applied Sciences in Geislingen-Nürtingen to examine private carsharing in an area that is no centre of population.
DEways – Offers free membership and secured, prepayed payments.
Buzzcar – Founded in April 2011 by Robin Chase
, cofounder of Zipcar
. Users find and reserve vehicles using the iPhone app or a computer. Buzzcar requires a key exchange, whether in person or at a pre-arranged drop spot.
Voiturelib - Started in June 2010, offers comprehensive insurance cover, secure payments, and social networking features. Voiturelib requires owner and renter to meet in person to exchange keys and sign the downloaded contract.
, fully integrated insurance product, 24/7 customer support, break down cover on all bookings made and automated screening of all drivers and car owners who join the service. Whipcar differ from a conventional car club in that there are no membership fees and owners and drivers meet and hand over the keys directly. WhipCar raised venture capital
funding from Delta Partners in October 2009. The service has over 40 makes of car available to rent at any time and is present in over 450 towns and cities across the UK. Within six months of launch, WhipCar had over 1,000 cars available to rent.
– RelayRides launched an initial pilot in Boston in June 2010. Their headquarters were relocated from Boston
to San Francisco in early 2011, although they continue to operate in the Cambridge
area. They are the first company to attempt to integrate the existing black box technology from car clubs into private car owner vehicles, with a business model closely aligned to that of car clubs. RelayRides
offers a single insurance policy to cover their drivers during rentals and claim to allow car owners to earn up to $8,000 a year by renting out their cars.
Getaround
– Based in San Francisco. Getaround uses web interface, smart phone and social graph
technology to facilitate person-to-person car rental. They offer a product called "The Getaround Carkit", which enables keyless entry to a converted vehicle through the ability of a driver or renter to unlock a vehicle through their smartphone. Getaround launched in May 2011, and won the TechCrunch
"Disrupt NYC" award. Currently they list cars in the San Francisco Bay area and San Diego.
Sprideshare – Based in San Francisco. Sprideshare is set to a launch a pilot scheme in collaboration with City Car Share in late 2011. Their model is akin to RelayRides
, requiring vehicles to be fitted with technology which enables them to be remotely unlocked. They have faced a major insurance barrier, rooted in California
insurance law, but worked with California State Assembly member Dave Jones
to create Assembly Bill 1871, which has changed insurance law to permit remuneration for personal vehicle sharing.
Go-op – Pittsburgh based start-up which is developing an online system for vehicle sharing that is environmentally friendly and provides revenue to car owners.
Jolly Wheels – Originated in New York City
in December 2005 and introduced the peer-to-peer rental concept in 2009, with over 80 locations across the United States.
– Communauto
pioneered carsharing in North America, and is in the process of launching their P2P program.
Person-to-person lending
Person-to-person lending is a certain breed of financial transaction which occurs directly between individuals or "peers" without the intermediation of...
model (also known as peer-to-peer lending and social lending) and a further move towards collaborative consumption
Collaborative consumption
The term collaborative consumption is used to describe an economic model based on sharing, swapping, bartering, trading or renting access to products as opposed to ownership. Technology and peer communities are enabling these old market behaviours to be reinvented in ways and on a scale never...
, which has become popular with the rise of social media
Social media
The term Social Media refers to the use of web-based and mobile technologies to turn communication into an interactive dialogue. Andreas Kaplan and Michael Haenlein define social media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0,...
.
The business model is closely aligned to traditional car clubs such as Streetcar or Zipcar
Zipcar
Zipcar is an American membership-based car sharing company providing automobile reservations to its members, billable by the hour or day. Zipcar was founded in 2000 by Cambridge, Massachusetts residents Antje Danielson and Robin Chase, and is now led by Scott Griffith, Chairman and Chief Executive...
, but replaces a typical fleet with a ‘virtual’ fleet made up of vehicles from participating owners. With peer-to-peer car rental, participating car owners are able to make money by renting out their vehicle when they are not using it. Participating renters can access nearby and affordable vehicles and pay only for the time they need to use them.
Businesses within this space typically apply some form of screening of participants (both owners and renters) and a technical solution, usually in the form of a website, that brings these parties together, manages rental bookings and collects payment. Increasingly, an automated form of insurance and breakdown coverage will be applied to rentals that take place through the service in order to protect an owner’s existing insurance coverage.
As with person-to-person lending
Person-to-person lending
Person-to-person lending is a certain breed of financial transaction which occurs directly between individuals or "peers" without the intermediation of...
, enabling technology for this behavior has been the Internet and the adoption of geo-location-based service
Location-based service
A Location-Based Service is an information or entertainment service, accessible with mobile devices through the mobile network and utilizing the ability to make use of the geographical position of the mobile device....
.
Australia
Drive My Car Rentals – Launched in December 2008, DriveMyCar was the first operator to successfully commercialise the peer to peer car rental concept. Car owners pay a $25 AUS ($15 US) annual fee to list their vehicle. Drivers can search and book these vehicles online, with the site arranging the rental agreement, insurance and payments. In 2010 the service introduced a hybrid insurance product that automatically covers an owner's vehicle when rented, costing drivers $10 per day. In late 2010, the company expanded its service from short term car rental to include short term car leasing (1-12 mths) and also entered the insurance replacement vehicle market. The company intends to expand its service into Europe and the U.S. in 2011.Germany
Autonetzer – Based in Stuttgart, the company started to test p2p-Carsharing in fall 2010. Since May 2011 the service is offered throughout Germany. An add-on insurance policy covers any kind of accident during the rental period irregardless of the car owner's own insurance.RentMyCar – Based in Konstanz
Konstanz
Konstanz is a university city with approximately 80,000 inhabitants located at the western end of Lake Constance in the south-west corner of Germany, bordering Switzerland. The city houses the University of Konstanz.-Location:...
as well as New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, their peer-to-peer car sharing marketplace was the world's first. The service launched in May 2001. The company offered free listings of personally owned car rentals on a marketplace type platform that allows car owners and potential renters to interact with each other and to negotiate their own rental rates and terms. The company provided a Virtual Vehicle Inspection Sticker (VVIS), a master keycard and personal car sharing search engine, and a business method using neighborhood managers. About 800 vehicles were offered for rental in its first two years.
rent'n'roll - Based in Hamburg, this company offers p2p-carsharing throughout Germany. It's possible for users to rent cars via an iPhone
IPhone
The iPhone is a line of Internet and multimedia-enabled smartphones marketed by Apple Inc. The first iPhone was unveiled by Steve Jobs, then CEO of Apple, on January 9, 2007, and released on June 29, 2007...
app. Rent'n'roll runs a scientific project in Geislingen
Geislingen
Geislingen can refer to:two towns in Baden-Württemberg, Germany:* Geislingen an der Steige, district of Göppingen.* Geislingen, Zollernalbkreis, Zollernalbkreis district....
with the University of Applied Sciences in Geislingen-Nürtingen to examine private carsharing in an area that is no centre of population.
Netherlands
In the Netherlands several parties are entering the market in 2011. All encountered barriers in the form of historical insurance models, particularly excluding peer to peer car rental. The most cited reason is that the perceived risks are hard to estimate. Competition in this small country, inhabiting roughly 17 million people, seems to become very strong as soon as multiple players are active. Nonetheless some parties seem to have cracked the insurance box and believe they can win over the market.France
Livop.fr – Started in September 2010, this is the first P2P carsharing in France with no key exchange.DEways – Offers free membership and secured, prepayed payments.
Buzzcar – Founded in April 2011 by Robin Chase
Robin Chase
Robin Chase is the founder and CEO of Buzzcar, a peer-to-peer car sharing service. She is co-founder and former CEO of Zipcar, an innovative car sharing service. She also started GoLoco.org, a venture combining online carpooling and social networking...
, cofounder of Zipcar
Zipcar
Zipcar is an American membership-based car sharing company providing automobile reservations to its members, billable by the hour or day. Zipcar was founded in 2000 by Cambridge, Massachusetts residents Antje Danielson and Robin Chase, and is now led by Scott Griffith, Chairman and Chief Executive...
. Users find and reserve vehicles using the iPhone app or a computer. Buzzcar requires a key exchange, whether in person or at a pre-arranged drop spot.
Voiturelib - Started in June 2010, offers comprehensive insurance cover, secure payments, and social networking features. Voiturelib requires owner and renter to meet in person to exchange keys and sign the downloaded contract.
United Kingdom
WhipCar – The world's largest peer-to-peer car club. They offer a bespokeBespoke
Bespoke is a term employed in a variety of applications to mean an item custom-made to the buyer's specification...
, fully integrated insurance product, 24/7 customer support, break down cover on all bookings made and automated screening of all drivers and car owners who join the service. Whipcar differ from a conventional car club in that there are no membership fees and owners and drivers meet and hand over the keys directly. WhipCar raised venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
funding from Delta Partners in October 2009. The service has over 40 makes of car available to rent at any time and is present in over 450 towns and cities across the UK. Within six months of launch, WhipCar had over 1,000 cars available to rent.
USA
RelayRidesRelayRides
RelayRides is a peer-to-peer car rental or carsharing service. It allows private car-owners to rent out their vehicles on a short-term basis, via an online interface....
– RelayRides launched an initial pilot in Boston in June 2010. Their headquarters were relocated from Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
to San Francisco in early 2011, although they continue to operate in the Cambridge
Cambridge
The city of Cambridge is a university town and the administrative centre of the county of Cambridgeshire, England. It lies in East Anglia about north of London. Cambridge is at the heart of the high-technology centre known as Silicon Fen – a play on Silicon Valley and the fens surrounding the...
area. They are the first company to attempt to integrate the existing black box technology from car clubs into private car owner vehicles, with a business model closely aligned to that of car clubs. RelayRides
RelayRides
RelayRides is a peer-to-peer car rental or carsharing service. It allows private car-owners to rent out their vehicles on a short-term basis, via an online interface....
offers a single insurance policy to cover their drivers during rentals and claim to allow car owners to earn up to $8,000 a year by renting out their cars.
Getaround
Getaround
Getaround is an online car sharing or peer-to-peer car rental service that allows drivers to rent cars from private car owners, and owners to rent out their cars for payment. Owners set their rental prices and earn a 60% commission from their rental revenue....
– Based in San Francisco. Getaround uses web interface, smart phone and social graph
Social graph
The social graph is a term coined by scientists working in the social areas of graph theory. It has been described as "the global mapping of everybody and how they're related"...
technology to facilitate person-to-person car rental. They offer a product called "The Getaround Carkit", which enables keyless entry to a converted vehicle through the ability of a driver or renter to unlock a vehicle through their smartphone. Getaround launched in May 2011, and won the TechCrunch
TechCrunch
TechCrunch is a web publication that offers technology news and analysis, as well as profiling of startup companies, products, and websites. It was founded by Michael Arrington in 2005, and was first published on June 11, 2005....
"Disrupt NYC" award. Currently they list cars in the San Francisco Bay area and San Diego.
Sprideshare – Based in San Francisco. Sprideshare is set to a launch a pilot scheme in collaboration with City Car Share in late 2011. Their model is akin to RelayRides
RelayRides
RelayRides is a peer-to-peer car rental or carsharing service. It allows private car-owners to rent out their vehicles on a short-term basis, via an online interface....
, requiring vehicles to be fitted with technology which enables them to be remotely unlocked. They have faced a major insurance barrier, rooted in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
insurance law, but worked with California State Assembly member Dave Jones
Dave Jones (politician)
David Evan "Dave" Jones is an American politician. He represented California's 9th assembly district December 2004 through 2011...
to create Assembly Bill 1871, which has changed insurance law to permit remuneration for personal vehicle sharing.
Go-op – Pittsburgh based start-up which is developing an online system for vehicle sharing that is environmentally friendly and provides revenue to car owners.
Jolly Wheels – Originated in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
in December 2005 and introduced the peer-to-peer rental concept in 2009, with over 80 locations across the United States.
Canada
CommunautoCommunauto
Communauto is a company based in Montreal, Quebec, Canada, that operates a carsharing service in 4 cities in Quebec: Montreal, Quebec City, Gatineau and Sherbrooke. It currently has 25,000 users who share a fleet of approximately 1300 vehicles...
– Communauto
Communauto
Communauto is a company based in Montreal, Quebec, Canada, that operates a carsharing service in 4 cities in Quebec: Montreal, Quebec City, Gatineau and Sherbrooke. It currently has 25,000 users who share a fleet of approximately 1300 vehicles...
pioneered carsharing in North America, and is in the process of launching their P2P program.
Timeline
- May 2001 – RentMyCar launches the first peer to peer car sharing marketplace.
- Oct 2008 – Drive My Car Rentals – launches peer to peer car rental service in AustraliaAustraliaAustralia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
- April 2010 – Whipcar launches peer-to-peer car rental service in LondonLondonLondon is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, UK. - May 2010 – Drive My Car Rentals – website and service redesign – introduction of hybrid insurance policy product that works in conjunction with the owners existing car insurance.
- June 2010 – RelayRidesRelayRidesRelayRides is a peer-to-peer car rental or carsharing service. It allows private car-owners to rent out their vehicles on a short-term basis, via an online interface....
launches Beta product in BostonBostonBoston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had... - November 2010 – tamyca launches all over GermanyGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
- December 2010 – Getaround launches Beta product in San Francisco
- Early 2011 – Sprideshare set to launch in San Francisco
- Early 2011 – JustShareIt set to launch in CaliforniaCaliforniaCalifornia is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
- June 2011 - rent'n'roll launches all over GermanyGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...