What to know about private car sharing, the new peer economy trend


  • TECH
  • Wednesday, 14 Mar 2018

A personal meeting to hand over the keys is often still required when using a car sharing service like SnappCar. But this, too, is changing. — SnappCar/dpa

Do you still drive your own car, or are you ready to share? Plenty of car owners these days are asking themselves this very question.

With platforms such as Car2Go and DriveNow having brought the idea of carsharing to the mainstream, the number of companies entering this expanding market sector is growing quickly.

But a new trend in carsharing has emerged, with some platforms offering car owners the chance to rent out their vehicles to strangers. Here are a few of the most common questions and answers about this growing market.

What is the idea is behind private car sharing?

On average, cars are not in use for 23 hours each day, explains Andre Haddad, CEO of US-based platform Turo. Services like his help optimise the potential of private vehicles. “It's a flexible mobility solution for travellers, giving car owners a valuable tool to offset the cost of their vehicles,” says Haddad.

How does the rental and handover work?

Rentals are usually arranged via app or website. At Turo, for example, renters can not only choose the location and date of the rental car, but even the car’s brand, model and colour. If the booking request is accepted by the car owner, the two can meet for the key and car handover.

Here, the car owner can check the authenticity of the renter’s license, while both parties can check the odometer, fuel gauge and any pre-existing damage while taking photos. When the car is returned, and once all these details have been checked again, the payment is made via services such as Paypal, and the receipt can be downloaded from the website.

Sounds a bit elaborate, doesn't it?

Susanne Kreusch certainly thinks so. Kreusch was among the first members of the now-discontinued peer-to-peer service CarUnity, which was run by carmaker Opel, and rented out her BMW to strangers on several occasions. However, she always had to arrange a personal meeting to hand over the keys, which made the service much less flexible.

However, this is gradually changing. Just as you can open Car2Go and DriveNow cars without a key in hand, private car owners will soon be able to retrofit their cars with similar functions. Smart and Mini, for example, have reported developing just such products, which they say will go on sale in the near future.

Another private car rental platform, Drivy, offers car owners the opportunity to have a technology called Drive Open built into their cars. This lets other people open the vehicles by smartphone, which means the renter and owner will no longer necessarily have to meet in person for the key and car handover.

How do I find a free car?

The platforms’ websites or apps can be used to search for free cars in the user’s vicinity. With Turo, owners can also offer to deliver their car at an additional cost, such as to the nearest airport.

What does it usually cost and what sorts of pricing structures are there?

Depending on the provider, car rentals are charged by the hour or per day, and often cost less than US$60 (RM234) per day. Cars rented through Drivy, for example, have an average price of US$35 (RM136) a day plus fuel costs.

How does insurance work?

The platforms Turo, Drivy and Snappcar all work with the insurance company Allianz. The car owner must take out additional insurance, which includes liability and own-damage claims. The car’s primary insurance remains unaffected. The renter can then choose between several insurance packages with different deductibles. — dpa

Limited time offer:
Just RM5 per month.

Monthly Plan

RM13.90/month
RM5/month

Billed as RM5/month for the 1st 6 months then RM13.90 thereafters.

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Tech News

Japan to levy big fines with new app rules
Inside Big Tech’s underground race to buy AI training data
Facebook scams demand stricter online rules, Japan lawmaker says
A Chinese firm is America’s favourite drone maker – except in Washington
Alphabet, Microsoft shares jump as investors cheer AI investment
Snap shares jump nearly 30% after Q1 beat
Rescue pup to meme star: The real-life ‘Dogecoin’ dog
Elon Musk is once again richer than Mark Zuckerberg as fortunes reverse
GPS bracelet places 18-year-old at the scene of 11 different break-ins, US cops say
Cat hides in Amazon return package – then ends up in California 700 miles from home

Others Also Read