Ava AbbottTuro is a peer-to-peer car-sharing and car rental company that provides a platform for private car owners to rent out their vehicles. The San Francisco-based company was founded as RelayRides in Boston in June 2008 by Shelby Clark.
In 2012, Turo expanded its service across the US. The car marketplace changed its name from RelayRides to Turo in Nov 2015 and launched in Canada and the UK in 2016. Over 85,000 car owners rent out 160,000 vehicles via Turo across the US, Canada, and the UK.
Since its founding, the company has raised $467 million from investors. In Jan 2022, Turo filed for approval to go public. According to estimates, its IPO could raise $300 million. [1]
Turo leverages innovative technologies to stay ahead of the competition. It was among the first online car rentals to introduce a remote unlocking app, an in-car device for GPS monitoring, and smart card entry.
In 2012, the company partnered with General Motors to enable mobile unlocking for GM cars. Turo adopted the peer-to-peer sharing concept similar to Airbnb, allowing customers to rent cars directly from their owners.
It has over 450,000 listings and operates across 56 countries globally. More than 1.3 million users booked vehicles via Turo between Jan and Sep 2021, making it the world’s largest car-sharing marketplace. But the company faces stiff competition from Getaround, Zipcar, Uber Rentals, Lyft Rentals, Hertz, and Enterprise. [2]
Here is an in-depth analysis of top Turo’s competitors and alternatives:
1. Getaround
Year founded: 2009
Headquarter: San Francisco, California
Getaround is a leading car rental service with over 200,000 members across 800 cities globally. Customers can browse and book vehicles in their area via the Getaround app or website.
In 2021, Getaround had over 6 million users and raised $140 million. This investment deal increased its venture funding to $600 million. The main competitive advantage for Getaround is its flexible and comprehensive listing, including environmentally-friendly cars.
Like Turo, the Getaround app features rental cars available within customers’ local areas. Car owners can rent their vehicles per hour, day, week, or month through the platform.
In Mar 2021, Getaround created a program to help its customers start car-sharing businesses. The company employs around 550 people and provides a $1 million insurance cover for rented vehicles. Getaround is the top car-sharing alternative to Turo. [3]
2. Zipcar
Year founded: 2000
Headquarter: Boston, Massachusetts
Zipcar is a membership-based car rental service operated by Avis Budget Group. The company introduced an in-car device for GPS monitoring long before Turo. In 2021, Avis Budget Group had around 500 employees, and its revenue increased by 72% to $9.3 billion. [4]
Zipcar provides automobile reservations to its members, billable by the hour or day. Its members also have to pay a $25 application fee and membership fees of $7/month or $70/year. Unlike Turo, Zipcar uses the one-way model.
Renters can pick up vehicles at one location and leave them at another, eliminating additional mileage fees. This model includes gas and insurance costs in the final price.
Renters can use Zipcar’s gas card to top off the tank if they run out of fuel. Zipcar is the best Turo alternative for short-term car rental.
3. Uber Rentals
Year founded: 2014
Headquarter: San Francisco, California
Uber Rentals is a car rental service offered by Uber, the leading rideshare company with more than 100 million monthly users. Customers can book rental vehicles via the Uber app, available in 69 countries and over 900 cities globally.
In 2021, Uber had 29,300 employees and generated $17.5 billion in revenue. [5] Unlike Turo, Uber Rentals offers rentals through third-party car rental companies like Hertz, Avis, and Dollar. This approach ensures customers access several rental car options, including luxury cars, sedans, and SUVs.
The service is not restricted to Uber customers and offers discounts on Uber rides for renters traveling to pick up their rental vehicles.
To rent via Uber, the customer must be 21 years old or older with a valid driver’s license. Uber Rentals works similarly to Turo, but it has a significant competitive advantage as Uber’s car rental service.
4. Hertz Corporation
Year founded: 1918
Headquarter: Estero, Florida
Hertz is a car rental company that operates around 12,000 corporate and franchisee locations in 160 countries. It is one of the largest vehicle rental companies globally and owns Firefly Car Rental, Thrifty Car Rental, and Dollar Rent-A-Car.
In 2020, Hertz filed for bankruptcy due to declining bookings but accumulated $5.26 billion in annual revenue. The company has 24,000 employees and $16.9 billion in assets.
Hertz emerged from Chapter 11 bankruptcy in Jul 2021 and went public again on the Nasdaq in Nov 2021. The company is focused on rebuilding through forward-looking investments to restore its high-ranking status in the car rental sector. In Oct 2021, Hertz announced its fleet electrification plan involving buying 100,000 Tesla vehicles in 2022.
The initiative is underway in several US cities, including Atlanta, Los Angeles, Orlando, San Francisco, and Washington, D.C. Hertz is a formidable Turo competitor in the US car rental market. [6]
5. Enterprise Holdings
Year founded: 1969
Headquarter: St. Louis, Missouri
Enterprise Holdings is a car rental company that owns and operates the Enterprise Rent-A-Car, National Car Rental, and Alamo Rent-A-Car. All three brands compete against Turo in the vehicle rental sector.
However, Alamo and National offer airport-based rentals. In 2021, Enterprise had around 80,000 employees and generated $23.9 billion in revenue.
Enterprise Holdings has a fleet of more than 1.85 million vehicles. The company rents out its own cars, while Turo links car owners with renters. In 2021, Enterprise Holdings introduced new technology and connected around 350,000 of its vehicles.
This technology can integrate its entire fleet in the next five years and help the firm anticipate supply challenges. Enterprise Holdings is one of the top Turo competitors. [7]
6. Lyft Rentals
Year founded: 2012
Headquarter: San Francisco, California
Lyft Rentals is a car rental service offered by rideshare specialist Lyft. Customers can rent vehicles via the Lyft app or website. In 2021, Lyft had 4,369 employees, and its revenue increased by 36% to $3.2 billion. The ride-hailing company reported a net income of $92.9 million in 2021, its first-ever profitable year. [8]
Lyft Rentals uses the two-way model, requiring customers to return rented vehicles to the exact pick-up location. The platform offers everything, from sedans to compact cars and SUVs.
Customers can rent premium models like BMW and Tesla, with free add-ons to enhance the rental experience. Lyft Rentals is similar to Turo in so many ways. This service is one of the best Turo alternatives for renting cars for a short period.
7. GIG Car Share
Year founded: 2017
Headquarter: Berkeley, California
GIG Car Share is a free-membership car-sharing service operated by the AAA organization. The service is only available in San Francisco Bay Area, Seattle, and Sacramento. In 2021, GIG’s membership increased by 28% to more than 100,000 members. Its members have made more than 1.6 million trips.
GIG Car Share operates a fleet of over 1,000 hybrid and electric vehicles, including Toyota Prius Hybrid and Chevy Bolt. Unlike Turo, GIG uses a unique model that allows renters to return the car to any location within the pick-up HomeZone instead of the exact pick-up location. This model reduces mileage fees and saves time.
In Oct 2021, GIG Car Share was named Car Sharing Service of the Year in the AutoTech Breakthrough Awards. GIG Car Share is a worthy Turo competitor in San Francisco, Seattle, and Sacramento. [9]
8. eGo CarShare
Year founded: 1997
Headquarter: Denver, Colorado
eGo CarShare is a nonprofit organization that offers car-sharing services across Colorado. It is one of the leading services in more than six cities, including Denver and Boulder.
In 2021, eGo CarShare had more than 50 vehicle models available for rent via its app or website.
eGo CarShare was among the first car-sharing services to offer electric cars, making it a great Turo alternative for eco-conscious customers.
Renters can find cars for rent in their area and book them for 15 minutes or more. The eGo CarShare app allows car owners to list their vehicles, set a price per hour, and receive direct payments via the platform. eGo CarShare is the best Turo alternative for car sharing in Colorado. [10]
9. SHARE NOW
Year founded: 2008
Headquarter: Berlin, Germany
SHARE NOW is a German car-sharing service operated jointly by the Mercedes-Benz Group and BMW. The company offers car-sharing services in 18 cities across Europe. In 2021, SHARE NOW added 538,000 new users for the car-sharing service and reported a 23% sales increase in longer rentals. [11]
SHARE NOW offers specific car models, including Mercedes-Benz, BMW, Mini, Fiat, Smart, and Citroën. Users are charged by the minute, hour, and day and access shared vehicles using a smartphone app. SHARE NOW and Turo operates in the European market.
But SHARE NOW offers one-way point-to-point rentals, while Turo uses the two-way model. With over 3.4 million customers, SHARE NOW is the leading car-sharing service and the top Turo competitor in Europe.
10. Hagerty DriveShare
Year founded: 1984
Headquarter: Traverse City, Michigan
Hagerty DriveShare is a car-sharing service specializing in classic and exotic cars. The service is owned and operated by Hagerty, an automotive enthusiast brand. In 2021, Hagerty commenced its plan to go public by merging with a SPAC company, Aldel Financial. The deal is valued at more than $3 billion. [12]
Aside from its classic car rental business, Hagerty also offers insurance, valuation tools, drivers’ club memberships, and specialty content for car enthusiasts. The company owns The Amelia, MotorsportReg, the Concours d’Elegance, and Motorworks Revival.
These brands and services increase Hagerty’s competitive advantage over Turo. Overall, Hagerty DriveShare is the best Turo alternative for classic car enthusiasts.
References & more information
- Hetzner, C. (2021, Jan 11). Car-sharing site Turo becomes first major IPO filing for 2022 following a record year for new stock issues. Fortune
- Wiley, M. (2021, May 13). I’ve saved money by renting cars from strangers through Turo. Insider
- Hawkins, A. J. (2021, Mar 5). Getaround wants to help you start your own car-sharing business. The Verge
- Avis Budget Group, Inc. (2022, Feb 14). Avis Budget Group Reports Record Revenues. Globe Newswire
- SRD (2022, Feb 28). Uber’s net revenue worldwide 2013-2021. Statista
- Brown, C. (2022, Mar 7). Is Hertz Back on Track? Auto Rental News
- Elliott, C. (2021, Nov 30). Enterprise CEO: Bookings Are Revving Up For 2022. Forbes
- Daleo, J. (2022, Feb 8). Lyft reports a first-ever full-year adjusted profit. Freight Waves
- Vaughn, B. (2021, Oct 20). GIG Car Share Named “Car Sharing Service of the Year” by AutoTech Breakthrough. PR News
- Romanovskaya, O. (2021, Dec 1). Top 8 Carsharing Mobile Apps. Mob-Industry
- SHARE NOW (2022, Jan 24). SHARE NOW closes a good 2021, reaching 3.4 million users in Europe. Sharenow.com
- Frank, R. (2021, Aug 18). Hagerty to go public via SPAC in a $3 billion deal with Aldel Financial. CNBC
- Featured image by why kei
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