During the pandemic, peer-to-peer car sharing has grown in popularity and is becoming increasingly popular across the world. Car-sharing programs, such as Turo and Getaround, work similarly to Airbnb, with owners renting their cars directly to other people. It makes sense, right? Many people want the freedom to drive, but without the cost and inconvenience of owning a personal car.
Peer-to-peer car sharing is a growing market, so what do the players think about this new concept?
The wrong side
Hawaiian officials say they don’t want high-volume, low-cost tourism and plan to introduce a bill that would ban peer-to-peer car rental apps in the state, citing concerns about the lack of regulation. It is this lack of regulation that is of most concern. Who pays what in the event of an accident?
There is also the question of whether traditional car rental companies could face competition from peer-to-peer rentals. Established car rental companies claim that peer-to-peer rental companies do not help consumers; just themselves. They suggest that companies like Turo sometimes harm consumers by providing substandard and unregulated services.
Of course, consumers are very open to the sharing economy, as evidenced by the successes of BlaBlaCar, Turo and Airbnb. It offers users an economical and effective solution for occasional use. It also allows car owners to earn extra money on days when they are not using their car. In fact, it is now estimated that nearly 2.9 million people in North America enjoy services in this segment.
It’s a relatively new concept and a lot of development is still needed. There are still too many gray areas to promote this mode of car rental. Wisecars advice would be to speak to your insurance agent or tax specialist to make sure all your bases are covered before considering this option.
About the Author: Felicity Travaini is co-founder and president of Wisecars, a car rental broker offering price comparisons of leading independent car rental providers around the world.