RelayRides
Encyclopedia
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.
Lenders and borrowers can set their own prices, and the company takes 15%. The service launched in Boston
in summer 2010 and in late 2010 it expanded to San Francisco. It has received financial support from Google Ventures
.
The company estimates that vehicle owners can earn from $2,300 to $7,400 annually, based on hourly rental rates that typically range from $6 to $12. The owner of the car sets the rate for their car to whatever price they wish.
The carsharing concept of RelayRides was inspired by similar services such as Zipcar
. However, founder Shelby Clark proposed a peer-to-peer
model because "we already have this massive resource in our communities" of underutilized vehicles. He added, "It’s for the community, by the community." The peer-to-peer setup also results in reduced rental costs as compared to car sharing services.
People who wish to profit from their cars while they're not being used, can register the cars online to be borrowed by other RelayRides members. Before the car can be lent to other RelayRides members, however, the company installs a device in the car, which controls and locks the car's ignition
, so that only registered and approved RelayRiders can drive the car.
To make the car available, a car owner that has signed up for RelayRides signs onto the network and states the time and place where the car will be available. A member who wishes to borrow a car will reserve a specific time slot for the car online, and pays for the amount of time they signed up for. The user will then find the car parked at the place specified online and marked with a RelayRides logo
. In order to unlock and drive the car, members must swipe their membership card over the installed RelayRides device.
Peer-to-peer car rental
Peer-to-peer car rental is the process whereby an existing car owner makes their vehicle available for use to other drivers in their area in exchange for payment...
or carsharing
Carsharing
Car sharing or Carsharing is a model of car rental where people rent cars for short periods of time, often by the hour. They are attractive to customers who make only occasional use of a vehicle, as well as others who would like occasional access to a vehicle of a different type than they use...
service. It allows private car-owners to rent out their vehicles on a short-term basis, via an online interface.
Lenders and borrowers can set their own prices, and the company takes 15%. The service launched in 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...
in summer 2010 and in late 2010 it expanded to San Francisco. It has received financial support from Google Ventures
Google Ventures
Google Ventures is the venture capital investment arm of Google Inc. that makes financially driven investments in technology companies. Google Ventures seeks to invest in start-up companies in a variety of fields ranging from Internet, software, and hardware to clean-tech, bio-tech, and health...
.
The company estimates that vehicle owners can earn from $2,300 to $7,400 annually, based on hourly rental rates that typically range from $6 to $12. The owner of the car sets the rate for their car to whatever price they wish.
The carsharing concept of RelayRides was inspired by similar services such as 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...
. However, founder Shelby Clark proposed a peer-to-peer
Peer-to-peer
Peer-to-peer computing or networking is a distributed application architecture that partitions tasks or workloads among peers. Peers are equally privileged, equipotent participants in the application...
model because "we already have this massive resource in our communities" of underutilized vehicles. He added, "It’s for the community, by the community." The peer-to-peer setup also results in reduced rental costs as compared to car sharing services.
How it Works
"Unlike traditional car rental services, RelayRides neither owns the vehicles nor maintains them. Rather, they are offering a platform for car owners and renters to connect generating scalability and lower pricing." They provide a platform that tracks the cars and matches prospective borrowers to car owners.RelayRides covers $1 million worth of insurance for vehicles during the rental period, and performs basic background checks of vehicle registration and safety, as well as renters’ safety records, to lessen the likelihood of complications between the owner and borrower of the vehicle.People who wish to profit from their cars while they're not being used, can register the cars online to be borrowed by other RelayRides members. Before the car can be lent to other RelayRides members, however, the company installs a device in the car, which controls and locks the car's ignition
Ignition
Ignition may refer to:*Making fire*CombustionEvents* Ignition , a Burning Man regional event held in Montreal, QuebecIn Media* Ignition , a top-down racing game for PC published in 1997...
, so that only registered and approved RelayRiders can drive the car.
To make the car available, a car owner that has signed up for RelayRides signs onto the network and states the time and place where the car will be available. A member who wishes to borrow a car will reserve a specific time slot for the car online, and pays for the amount of time they signed up for. The user will then find the car parked at the place specified online and marked with a RelayRides logo
Logo
A logo is a graphic mark or emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition...
. In order to unlock and drive the car, members must swipe their membership card over the installed RelayRides device.
Eligibility
Drivers as young as 18 (with two years of driving experience) may use the service. RelayRides performs background checks on all potential borrowers, and drivers of any age are deemed ineligible and will not be accepted if they have any of the following in their driving record:- Two or more speeding violations
- A speeding violation that was more than 25 mph over the speed limit
- Two or more red light (or stop sign) violations
- Reckless driving
- Driving Under the Influence (DUI)
- Vehicular manslaughter.
See also
- Alternatives to the automobileAlternatives to the automobileEstablished alternatives for some aspects of automobile use include public transit , cycling, walking, rollerblading and skateboarding. Car-share arrangements are also increasingly popular – the U.S...
- Car rentalCar rentalA car rental or car hire agency is a company that rents automobiles for short periods of time for a fee...
- Car Sharing
- Carpooling
- Peer-to-peer car rentalPeer-to-peer car rentalPeer-to-peer car rental is the process whereby an existing car owner makes their vehicle available for use to other drivers in their area in exchange for payment...
- Momo car-sharingMomo car-sharingMomo Car-Sharing is an project intended to promote a sustainable mobility culture supporting various transport options aside from car ownership. It has a total budget of 2,693,644 €, 50% co-financed by the European Union...
European demonstration project on carsharing