Build a Car Rental App like Turo: Mobile Development & Costs

Discover how to develop an on-demand car rental app in 2024.

Blog Overview: In this blog, we explore developing an on-demand car rental app like Turo in 2024, breaking down the expenses from development to customization. We offer insights on the cost of mobile app development like Turo while achieving a high-quality app that meets market demands.

In today's fast-paced world, the sharing economy has revolutionized how we interact with goods and services. Car rental, once a domain of traditional companies, has undergone a significant transformation with the emergence of peer-to-peer platforms like Turo.

Turo has disrupted the conventional car rental industry with its innovative approach, which allows individuals to rent their vehicles. If Turo's success has inspired you and are eager to embark on your journey into the realm of car rental apps, you've come to the right place. Before we embark on the details, here are some statistics:

The rental sector grows at a CAGR rate of 20.75%, and the market volume is expected to be $4.03 billion by 2025. By 2024, the estimated number of users will be 567.2 million, rising to 585.5 million in 2025. 

Do you smell cash? Well, being a mobile app development service provider that aims to empower small to medium-sized businesses or ideas like yours, we smell; exponential growth, humongous potential, and a thriving business.

If someone had predicted this a few years ago, we would have laughed it off. But you cannot argue with the numbers. So, for all those who are skeptical, here is the hard data,

• Car rental mobile app development’s market revenue is expected to grow annually by 18.5% by 2024.
• The market value of car rental services is expected to reach $105, 285 million by 2024
• The average revenue generated by car rental apps like Turo is $76.1 million per year. And its total funding is $467.4 million.
• The number of users to use car rental apps by the year 2024 is expected to be 549.2 million

Car rental mobile app development is catching the wind with lightning speed. But building an entire business and a car rental app like Turo out of it is not a cakewalk. You cannot just slap a few ideas and features together and call it a day. Needless to say, you need a way-finder. A tech partner to assist you in building the business with a safe and sure development plan. But we have kept this best part for the end!

So, Talking about the elephant in the room! Our aim to write this blog is to enlighten you with the answers you are desperately seeking. Hence by the end of this blog, you will know,

• How to build a car rental app like Turo?
• How much will the car rental app development cost? 
• And how to find the right tech partner for this?

How to Build a Car Rental App Like Turo?

Here are nine essential steps to develop a peer-to-peer car rental platform offering a smooth user experience and practical solutions. By meticulously planning and methodically executing each step, you can establish a thriving car rental platform facilitating connections between car owners and renters, leading to lucrative returns. Without further ado, let's commence with the inaugural step.

Step 1: Market Research and Analysis

Conduct comprehensive market research and analysis before building your P2P car rental platform.

• Understand the dynamics of the car rental industry.
• Identify your target audience, their needs, and pain points.
• Determine if there's sufficient demand for a P2P car rental platform in your chosen market or niche.
• Gather insights to inform your platform's features, pricing strategy, and marketing approach.

Step 2: Define your unique value proposition

What sets your P2P car rental platform apart from existing competitors? Identify the key features and advantages that will attract both car owners and renters to your platform offering—competitive pricing, a more comprehensive selection of vehicles, enhanced safety measures, or superior customer support.

Step 3: Develop a transparent business model that suits your business needs

With your unique value proposition, developing a transparent and sustainable business model for your P2P car rental platform is time. Consider how you will generate revenue while providing value to car owners and renters. Will you charge a commission fee on each rental transaction, offer subscription plans for frequent users, or incorporate additional revenue streams such as advertising or premium features?

Step 4: Design the user interface and experience

90% of users stopped using an app due to poor performance. Source

A user-friendly interface is essential for attracting and retaining P2P car rental platform users. Hire developers to develop a sleek and visually appealing interface that makes it easy for users to navigate the platform's features and functionalities. Here are some suggestions for enhancing your app's design:

• Create a clear and intuitive navigation system
• Ensure that your app's design remains consistent throughout
• Streamline user input processes to minimize errors
• Leverage visual hierarchy principles such as size, color, and placement
• Optimize load times to enhance user satisfaction
• Incorporate personalized features whenever feasible

Step 5: Select the Right Technology

Opting for the appropriate technology stack is pivotal in crafting your car rental platform akin to Turo. The chosen tech stack directly influences the app's performance across diverse devices.

Here's the optimal technology for its development:

Frontend Development:

Flutter emerges as the prime choice for mobile app development due to its singular codebase, which caters to Android and iOS platforms, expediting development cycles and ensuring consistent user experiences.

In web development, various tech stacks, such as React, Node, and Next.js, offer robust solutions for crafting engaging frontends. These technologies empower developers to fashion interactive user interfaces replete with reusable components.

Backend Development:

Backend development is equally crucial in ensuring seamless platform functionality devoid of errors. Thus, it's imperative to employ suitable technology like Node.js. Renowned for its event-driven, non-blocking I/O capabilities, Node.js facilitates efficient management of concurrent connections and delivers commendable performance.

Tech stack required for developing a car rental app:

This table outlines a versatile and scalable tech stack that can support a car rental app through its development and growth phases. The choice between specific technologies may depend on your team's expertise, the specific requirements of your project, the scale of your user base, and your budget.

Step 6: Implement secure payment integration

Integrating a secure payment system is crucial for facilitating transactions on your P2P car rental platform. Collaborate with trusted payment gateway providers to incorporate secure payment methods that inspire confidence among users. Ensure compliance with industry standards and regulations, such as PCI DSS, to safeguard sensitive financial information and prevent unauthorized access. Implement encryption protocols to protect payment transactions and user data from cyber threats. By prioritizing secure payment integration, you'll foster trust and reliability, encouraging users to engage in transactions with peace of mind on your car rental platform.

Step 7: Consider the monetization strategies to generate earnings

For a platform similar to Turo, what avenues exist for generating revenue? Various options can increase your earnings, including subscriptions, commissions, advertisements, and more. As a startup, you might initially incorporate one or two revenue-generating methods and gradually introduce additional strategies.

Some revenue models utilized by Turo to generate revenue include:

• Booking fee: As a primary source of income, Turo earns a commission on each rental reservation, typically ranging from 15% to 45% of the total rental price
• Delivery fee (Optional): Turo receives a portion of the fee charged by hosts for providing delivery and pickup services.
• Excess mileage fee: Renters incur an additional charge per mile beyond the allowed distance limit, with a percentage of this fee going to Turo.
• Value-added services include insurance plans to protect against financial losses resulting from accidents, theft, or damage for hosts and guests, as well as roadside assistance, where Turo provides 24/7 roadside assistance to renters for an additional fee.

Step 8: Factor the cost to develop an app Turo-Style

When strategizing to develop an app similar to Turo, it's imperative to factor in the cost of developing an on-demand car rental app. Typically, the cost ranges between $15,000 and $60,000, though it may fluctuate based on numerous factors such as feature complexity, app design intricacy, chosen technologies, and the geographical location of the development team.

How much does it cost for on-demand car rental app development?

The cost of any application is influenced by a lot of factors. It might also differ as per the industries. But since we are talking about the on-demand car rental app development, here are the crucial factors that decide the cost of the application.

• Starting price for developing a car rental app marketplace is around $20,000, with costs varying based on complexity and functionalities desired. (Source: Hyperlink InfoSystem)
• Costs can range between $18,000 and $28,000, significantly influenced by whether the development is for a minimum viable product (MVP) or an app with more advanced features. (Source: AppMaster)
• Development costs are also affected by the geographical location of the development team, as hourly rates for developers vary significantly across different countries. (Source: DashBouquet Development)

Here's a concise table summarizing the estimated costs associated with different aspects of developing an on-demand car rental app in 2024:

These estimates provide a rough guide but will vary based on the specifics of your project and the development team's location.

To get a rough estimation of car rental app development, contact us.

Hire the Right Tech Partner to Build a Car Rental App like Turo

Once you've grasped the app's features and design, it's time to enlist a proficient car rental platform development team to assist with the intricacies of building a car rental app like Turo. The development team should possess pertinent experience and stay abreast of cutting-edge technology. In addition, the experienced team will also conduct comprehensive testing to ensure a seamless platform experience and can fully enjoy the services offered to ensure the dependability, security, and satisfaction of the car rental platform.

Conclusion:

Creating a car rental app presents an excellent opportunity to broaden your business horizons and enhance revenue streams. However, before embarking on car rental app development, it's crucial to grasp the intricacies of the process and determine the essential features to incorporate into your app.

To craft a top-notch car rental app and transition your business into the mobile realm effectively, it's imperative to enlist the services of seasoned developers or specialized car rental app development firms. With an adept team and a well-devised strategy, Clarion Technologies can help you fashion an app that expands your reach.