How To Develop A Car Rental Mobile App Like Turo – Cost And Features

Last Updated on June 14, 2022

What are Car Rental Mobile Apps?

Luxurious living has become the new trend in the town and people from all walks of life like to enjoy the little joys they get in availing usual services at decent prices. With car rentals becoming a service easy to avail, the service providers have made a drastic move to the car rental apps and have been selling their services on the platform. Whilst the people have got a lot of options of cars to choose from and drive it themselves, they can now avail lucrative offers by comparing prices and the availability of cars from various apps available. It is quite easy to use as well, as users do not have to look up for services on a web browser and make unnecessary calls.

The car rental apps have gained immense recognition due to the growing demand, and one can see an upsurge in the use of such mobile applications. These apps help the users place their booking order on the app and get notifications giving them information on the details of the car and the timings.

The convenience of this app is to book a car rental service from anywhere in the world with the help of an internet connection. You will get access to the car rental service in the zone you are in and will thus, know which one is the nearest to you. This creates a sense of loyalty among the users. Take a close look at each detail of this industry to get a better understand of how these apps work.

Market Size of Car Rental Industry

The car rental industry is not only vast but is always growing with the needs of the users. With commuting being a part of everyone’s routine, these services have benefitted a lot from them. The on-demand car rental industry stands among the biggest industries right now, and car rental is a part of that.

The car rental apps are not just limited to big companies, but the apps are also being made by small and medium-sized companies. Since there is a lot of demand for such apps, the service providers are trying to meet that demand by providing several services through their app. Let’s have a look at some stats for the worldwide car rental market.

• Revenue in the Car Rentals segment is projected to reach US$53,333m in 2020.
• Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 18.5%, resulting in a projected market volume of US$105,285m by 2024.
• User penetration is 3.6% in 2020 and is expected to hit 7.1% by 2024.
• The average revenue per user (ARPU) is expected to amount to US$200.37.
• In global comparison, most revenue will be generated in the United States (US$16,155m in 2020).

Take a look at the graphical representation of Car-Rentals worldwide Market Forecast done by Statista:

One such app in India that is doing really well is the Zoom car app, which started off in 2013 with merely 7 cars, and has expanded its business to a great extent with over 1800 cars in service. According to reports, the company will add 6000 additional cars in times to come.

The Revenue Model of Car Rental Apps

The car rental services offer cars and other luxuries to the users. There is a reason why this business helps the service providers generate good revenue and work efficiently without letting any glitch bother their revenue model. Let’s look at the revenue sources for the car rental businesses:

1. Car fleet of their own

This one requires the service providers to set up a big business with a good deal of investment. The company has to buy cars and assign it to various drivers. They earn the base fare given by the customer for the services. The drivers are either paid on a monthly basis or on the basis of each service provided. One of the most popular apps Hertz follows this business model.

2. Commission-based

This one is a little different, where car owners get a platform under one of the car service apps and receive money according to each booking. A certain amount from their earnings goes to the app developers. Another option available under this model is that the car owners can give their cars to a driver who takes bookings and takes the car around the city. Turo is one such app that follows this model.

Types of Car Rentals

These apps cater to a wide variety of user needs. Take a look at the various kinds of car rental mobile apps that are available in the market:

Self-driven Car Rentals

Under this category, a user books a car on rent and drives it himself. He is charged on the basis of the car selected and the number of hours he has hired a car for.

Corporate Car Rentals

This service offers convenience to business clients by offering them their cars for office purposes.

Outstation Car Services

This one manages the travel bookings of travelers who travel to other cities and states. It allows them to book the car for a longer period of time.

Local Car Rentals

This one offers the users cars on the basis of an hourly, half-day, or full-day basis. It also includes the airport pickups and drop-offs.

A Look at How These Car Rental Mobile Apps Work

The car rental service apps work differently for the users and the admin. Let’s take a look at how the app functions for the users:

1. Login

The first and foremost step, like most other apps, these too will take the user to a landing page, where he/she will have to log in with his credentials and all their details. The best way for people to log in without wasting much of their time is to let them sign up with the credentials from any of their social media accounts.

2. Multiple cars

A user might have different requirements and would like to book a car according to their needs. Therefore, the app offers them a wide range of cars to choose from. This does not only give them options but allows them to choose according to their budget and expectations.

3. Select a car

A user can select a car of their choice according to their preference of the color, size, number, and other specifications of the vehicle.

4. Schedule a booking for the car

After the user is done selecting a car and a model according to their choice, they can pick a time from when they would like to avail the service. Like call-in services, the app does not make a user wait for the booking, instead, book it instantly for them

Also read: How to develop a mobile app for eCommerce

5. Managing their bookings

All users using car rental apps can manage their bookings by confirming the time they would like to use the car. This helps in maintaining transparency and keeping a track of the upcoming bookings.

6. Calculating the fare

A car rental app has its own way of calculating the price according to the car chosen and the duration it is needed by the user for. The users can calculate the fare for themselves according to the kilometers they need the car for.

7. Online payments

With the online wallets coming into being, online payments have become very easy. One can refrain from paying in cash, rather make a prepaid booking by paying through their credit or debit cards, or through one of the online wallets. The car rental service apps mostly accept online payments and provide the users with the receipts of their booking.

8. Notifications

Once a user makes a payment, his booking is confirmed through a notification that pops up on his device, along with the information of the car and the timing it is booked for.

9. Tracking

The users have a sense of security with these apps as they can easily share the details of their car with their friends and family, who can track their live location.

10. Cancellation of a booking

This feature allows the user to cancel a booking, due to any sort of urgency of changes in the plan. This is one of the most essential tools in a car rental service app.

11. Efficient delivery

The users can get the car delivered to their doorstep, without having to go to the office of the service provider to pick up the car. This has made the usage of such apps even more beneficial.

 Car Rental App Development – Admin Features to Include

1. Management of the car

The overall management of the vehicle can be done by the admin under this feature. It allows them to update the car information in their records along with the user information to whom the cars have been allocated.

2. Dashboard

This is the most important feature as the admin can manage all the cars and vehicles here. They can also update the dashboard with information on the number of cars that are in use by the users.

3. Customer management

The users registered with the car-rental service app are monitored under this feature and their information including their addresses, ratings, and services availed is stored under this.

4. Managing payments

To make the transactions transparent and accessible to all, this feature allows the admin to manage all payment gateways, details of payment, and the amount of commission given to the services under this category.

5. Analytics

All details about the cars with the latest trend in the industry and the cars most liked by the users fall under this category. It helps streamline the time schedules, cars selected and the services availed.

6. Management of the categories

The admin also manages the various categories related to vehicle availability and update the rental bookings accordingly.

7. Managing the fares

The admin also decides upon the fare structure of the rental car service apps. The fare structure is determined according to the location and the size and brands of the cars.

Popular Car Rental Mobile Apps

There are a number of apps that have contributed to the industry and are flourishing because of the services they have offered to the users. Let’s look at some of these apps:

1. Hertz car rental app

This one has a long history as it dates back to over 100 years ago when it was started by Walter J. Jacobs with merely 10 cars. Within a year, his company became the best car rental company all over the world. The company has its own app today with over 8,000 administration offices all over the world. They offer a very smooth service and lucrative offers.

2. Zipcar

They offer services mainly in the U.S. and Canada. It is one of the most economical car rental service apps where one can book a car either on an hourly basis on on daily basis.

3. Skyscanner

This car rental app service has gained popularity because of its additional services that allow the users to book flight tickets and accommodations as well. The users get a number of services all at a single platform.

4. Hotwire

Another one of the car rental service apps that are doing tremendously well in the field, Hotwire has the same business model as Skyscanner. It offers lucrative deals that enable users to save more than 60 percent on their bookings.

5. Avis

Headquartered in Parsippany, New Jersey, the car rental service provides affordable cars at a rent and quote a price that is not too heavy on the pocket of the app users. It offers a variety of cars on its platform and allows the users to either book a self-driven car either on an hourly basis or on a daily basis. It also focuses on providing proper safety like child safety seats and roadside assistance.

6. Zoomcar

The company started off in 2013 with merely 7 cars and has expanded its business to a great extent with over 1800 cars in service. According to reports, the company will add 6000 additional cars in times to come.

Advanced Car Rental App Features to Consider while Development

1. Assign drivers

This feature enables the users to book the driver along with the car from the app itself. They can select a person as their driver after reading their reviews and ratings on the app. This service is mostly availed when a person wants to book a ride in the long run. The user can also request information like the driver’s gender, age, rating, and experience.

2. Interactive statistics

The car rental apps give access to the real base fare along with other information like fixed packages, time rates, surge pricing, and distances. One can get insight into the exact business process of the organization.

3. Payment gateway

Payments can be a cause of concern if there is no transparency and the actual price varies from the one displayed on the screen while making the booking. Now that a lot of options for payments are available including online banking, debit/credit card, e-wallets, and UPI, it has become easy for the user to make a booking without any hassle.

4. Zone set-up is operational

A car rental organization is well versed in the area with maximum users of their services. They can set up promotional services in the area to lure the users and allow them to make the most out of the services offered by the car rental service providers.

5. GPS tracking for pick-ups and security

One of the main features that ensure not only safety but helps the car driver to locate the customer, GPS tracking has made the business to operate smoothly. Users can access the location of the driver and help him navigate to the pick-up point easily. Also, the live location of the car can be shared by the user with his friends, family, or admin for security reasons.

6. User’s behavior tracking

The app saves the algorithm of bookings made and canceled by the users, it also gives the rental service providers access to the kinds of bookings made by the users. It helps them allocating cars and drivers to each user according to their behavior and their preference.

7. Offers

To lure customers into booking a service from your app, a car rental service will have to offer them lucrative offers that they cannot ignore at any cost. Regular users love to get special prices for the services they avail.

8. Cost calculator

For users who want to rent the car and drive it themselves to an outstation or want it for a certain period of time, the cost calculator helps them get a rough idea of how much it would cost them for the time frame mentioned by them. This allows them to compare the prices of services offered by different apps and book the one that is most economical for them.

9. Communication and notification

The apps maintain transparency by providing sending timely notifications of each detail to the users. Any booking information will be communicated to them in the form of a notification. The details of the car and the price will be sent to them before delivering the car to them.

10. Push notification

A push notification enables the app developers to keep their users informed about their booking and details of the car that is being sent for their service. They are also notified about the final pricing of the service. Users can get information like any offers or promotions run by the app in the form of a push notification.

11. Email and Message

Although the details of service are sent through push notifications, they should also be sent to the users either on their email id or as a text message on the mobile device. This helps them save the details for future reference if needed.

12. In-App calls

The users should be allowed to make calls to the drivers or the service providers without being charged, through the app. This allows them to stay on the app, without navigating away to switch to contacts or phone calls.

13. In-app videos

This feature allows users to make video calls through the app itself.

14. Multiple bookings

Under this feature, the users are allowed to make not one, but as many bookings as he wants at one time. The apps also allow him to make bookings for multiple locations.

15. Custom packages

This feature is especially for returning and loyal customers. If they use the service of a car rental service quite often, they can choose from the custom packages offered through the app.

16. Floating window

This helps the users in making a quick booking for a car. Their location is saved and they can quickly make the booking between two places that he commutes on a regular basis.

17. Real-time analytics & statistics

This helps the admin know the number of cars that have been rented at one point in time and the details along with the location update of each car.

18. Robust fleet tracking

A device is installed in the car that tracks the vehicle and provides its location information to the app developers of the car rental company.

19. In-app call contact masking

This provides security to the users by enabling them to connect with the drivers through the app, without revealing their phone numbers to them.

20. In-app document scanner

While most interstate car rental services ask the users to provide their ID documents before availing of the service, it is helpful to users if they get an inbuilt document scanner in the app itself.

21. In-app document Upload

With the help of this feature, the owner of a car can check and verify the license and other documents before renting the car and the customer can upload the required document to rent the car.

22. Loyalty programs

Provide something extra to your loyal customers. Offer loyalty programs like earning reward points leading to free services with the accumulated points.

23. CRM integration

Customer relationship management is the most healthy feature for any application. It helps the customers get in touch with the support team of the app who can listen and act upon their queries at any point in time.

24. Panic button

It is always beneficial to maintain decorum among your drivers. A panic button should be installed in the app, which can help the users or passengers to raise an alarm they sense anything wrong with them during the ride.

Important Things to be Considered while Developing a Car Rental Platform

1. Insurance

All vehicles put up for the service should be insured at the insurance papers should be handed over to the users/clients when the car is delivered to their place.

2. Safety and Security

The on-demand app should adhere to the government guidelines and provide proper safety measures to the users. Some apps provide roadside assistance as well, which is a good measure to provide a sense of security to the users. If at any point in time a car breaks down anywhere, they can right away call the service providers and ask them for assistance.

3. Speed Limit

The car rental service providers can set a speed limit on their cars according to the speed limit regulations in their city. As the tickets are cut online and the car exceeding the speed limit would receive a ticket online, therefore, the users must be told in advance about maintaining the speed limit.

4. Fuel Policy

All apps work in different ways, while some might offer some fuel initially and would want the users to get fuel filled later on their own, some might just want the users to come and pick the car from a specific spot and get their fuel-filled themselves. However, a user can also request for fuel in the car if they do not want to waste their time at a gas station. This would result in some additional costs.

5. User Authentication

All the users availing any service from the service providers should be authenticated by the app after signing up on the app. Their details along with the address and contact details should be properly listed for record of the service providers.

6. Damage Policy

The app asks the user to take charge of the car gets damaged during the course. The user has to go through an agreement stating the same and tick inside a box for agreement, before starting to peruse their service.

7. Service and Maintenance

The users should be informed about the services provided by the service providers and a brief about the maintenance of the cars should also be mentioned in the app. This helps in bringing transparency between the service provider and the users.

Team Structure Required to Design Develop On-Demand Car Rental Mobile App like Turo

• Managers – Project Manager, Delivery Managers
• Developers: Android, iOS, front end, and back end developers.
• Designers: UX/UI designers and graphic designers
• Testers: Experts who can analyze the quality of the app.

Car Rental Mobile Development Process

Considering the app to be robust with a lot of features, there usually is a requirement of experienced app developers who understand the nature of the work of the app and accordingly build the app. Take a look at the procedure an on-demand car rental service app goes through during the development phase:

Cost of Developing a Car Rental Mobile App

Before starting to work on the development of the app, a car rental service should figure out the target audience and the number of features they want to include in their app. The complex the app, the more it will cost. If a company starts off with a limited amount of features initially, the cost might seem reasonable. The car rental service providers can either hire a team of developers and designers to work for them or hire freelancers to work on an hourly and daily basis.

The approximate estimate of developing a car rental app will be somewhere between $17,000 to $30,000. However, if you are planning to include technical parameters and additional features, then the cost of app development might go higher than this.

Conclusion

Smartphones have made lives easy and modern. The big players in the automotive industry who started off with advertisements and banners showcasing their phone numbers have also made the big move towards the apps. Therefore, the startups should consider getting their automotive software or app made from the beginning itself. It also helps them get in touch with their customers and make personal contact with them. You can offer deals and post promotions on your app to increase the usage of the apps and the services offered by you on the app. A company has to be sure of the app development company they hire, as they should have some prior experience in the industry to develop an app that is most suited to the needs of the users.