Private Vehicle Rentals: Turo is the Airbnb for cars

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Turo is the Airbnb for cars

Private Vehicle Rentals: Turo is the Airbnb for cars-rentals

Also gives his best piece: Andre Haddad in front of his Porsche 911. However, the CEO of Turo likes electric driving in everyday life

Source: private

Cars just sit around 95 percent of the day. The US provider Turo is now also showing in Germany how to earn money during this time. CEO Andre Haddad even rents out his supercars.

S.a darling all appear in their Sunday best. We’re not talking about his own three children, but about his spruced up cars. Andre Haddad had them set in scene by professional photographers: several Tesla, Porsche 911, Audi R8. Five cars – or should one better say: rockets – with a total of more than 2000 hp. But it was not so much vanity or hard work that moved the CEO of Turo to the shoot, but rather pure business interests: better photographed vehicles are simply easier to rent.

To lend? Vehicles that cost 100,000 euros and more can be borrowed privately? Haddad grins: "If I can earn something with it, then I no longer have such a guilty conscience that I spend so much money on cars," says the Lebanese native.

Because that’s what the Turo idea is based on: If most vehicles just stand around 95 percent of the time, why shouldn’t you lend them out during this time and earn money with them? It’s like Airbnb‘s application on cars, only that this private rental via web and apps is not about immobile, but mobile business.

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It is not the first idea that Haddad has succeeded with in the international digital market. By founding iBazar in Paris, where he had fled Lebanon, he succeeded in initiating one of the leading European marketplaces on the Internet as early as the late 1990s. In 2001 iBazar was bought by Ebay for $ 140 million and Haddad worked for the internet auction house as Senior Vice President for a while before becoming CEO of the shopping.com portal.

This was also purchased from Ebay in 2005. For $ 600 million. It is safe to assume that someone like Haddad knows how to merge the consumer web and big data profitably. If someone like that pushes an Airbnb for cars, you should look carefully to see whether a major disruption of the mobile market is looming there.

He himself explains his tendency towards entrepreneurship and entrepreneurship with his own life story. "When people flee from a country, it only means that they no longer want to accept the circumstances as they are," says Haddad on a visit to Berlin while playing on the rainbow-colored bracelet of his Apple watch.

The minute billing seduces you to the lawn?

Accident researchers sound the alarm. Does car sharing tempt you to race? – "Wherever there is time pressure in the background, you are naturally tempted to achieve as much as possible during this time," says Siegfried Brockmann from the German insurance industry. Source: N24 / Christoph Hipp

Apple founder Steve Jobs, the son of a Syrian immigrant, was just as influenced by such a background as Amazon boss Jeff Bezos, who was raised by his Cuban stepfather. "Some with a migration background don’t just want to change their living conditions, they want to create something that actually makes the world a better place."

That sounds a lot like the American mantra and it is. Haddad moved to the United States a decade and a half ago, and has lived there since then with his husband and three children born to surrogate mothers in San Francisco. And now earns money, among other things, by renting out his cars. In 2018 he made $ 30,000 so far. Well, not everyone owns several Tesla or even Porsches.

But still: “In the USA, the ‘hosts’, the rental companies, earn an average of 170 US dollars per trip, in this country it is currently 152 euros per booking,” says Marcus Riecke, Managing Director of Turo in Germany. There are around 1,500 private rental companies who are currently listing their vehicles at Turo – most of them in Munich, Frankfurt and Berlin – and more than 50,000 who have registered as users in this country. At the end of July, almost 300,000 vehicles were being offered for rent through Turo worldwide.

A Lamborghini Huracán for 524 euros a day

The provider gives the "hosts" recommendations as to what one could use for his vehicle. But it is up to the lender what he actually takes for it. The prices fluctuate extremely. A Pontiac Bonneville from 1967 is offered in Munich for 111 euros a day, a VW Up from 2012 is available there for 22 euros. In Berlin there is a 2009 Mercedes S-Class converted to gas operation for 60 euros, while a Ford Mustang GT with 441 hp costs 129 euros. Commercial providers also offer via Turo, one calls for his Lamborghini Huracán (610 PS, Vmax 325 km / h) 524 euros a day.

Each vehicle is insured with a large German insurer for 100 million euros, which makes up the majority of the costs for Turo. On the other hand, hardly anyone would give up their car voluntarily – the list price of the aforementioned Lambos is 178,500 euros – if they were left with the costs in the event of an accident or their own insurance would skyrocket.

There is little doubt that there could be enough space on the market for Turo in this country as well. Next up is the number of car sharing providers on offer reasonably manageable. DriveNow, that with BMW and Mini equipped, started in Munich in 2011 with a fleet of 300 vehicles and in July 2018, seven years later, had 3370 vehicles. Car2Go, Daimler’s car sharing model with cars from the Smart subsidiary numbered 3,910 vehicles this summer

Private Vehicle Rentals: Turo is the Airbnb for cars-rentals

Andre Haddad with his Tesla, which he also sells through Turo. However, his children only share the mini version with each other

Even if the two brands merge to form the largest car sharing provider in Germany – as planned – one should hardly get in the way with Turo. In any case, DriveNow, Flinkster & Co. are more likely to be used for short distances in terms of time and space in large cities and metropolitan areas.

"Of course there will be different providers for a wide variety of applications," says Sebastian Hofelich, Managing Director of DriveNow, assessing the development of the market in relation to WELT. “As a free-floating provider (without fixed stations; editor’s note), we generally position ourselves more in the urban environment and are mainly used for shorter distances. Turo and other providers will certainly have longer rental periods on average. "

In Germany, the vehicles are booked through Turo for around three days, in the United States it is three and a half. At DriveNow, on the other hand, the average rental period in this country is between 20 and 40 minutes. In the end, however, what is decisive for Hofelich is "that the citizens have access to an overall offer that enables them to do without their own car without sacrificing comfort.".

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A request that is also close to Haddad’s heart. Today he owns significantly more cars than he needs. He sees it that way himself. When the number of vehicles on earth exceeded the billion mark in 2010 and founder Shelby Clark Turo started under the then name RelayRides in Boston, Haddad was immediately enthusiastic about the idea and joined RelayRides himself. Despite the name change, the core idea has remained the same to this day: "How can we use cars in such a way that both sides benefit: people and the environment?"

For many, what is sympathetic about this type of car sharing is the non-moral, undogmatic approach. Everything that is fun can be offered how to drive. Anyone who sifts through the cars on Turo will still be surprised at how many electric vehicles are can be found there. Whether a Tesla Model X (228 euros / day), BMW i3 (49 euros) or the Nissan E-NV200 (45 euros): Apparently, not only do the owners of their e-mobiles get excited, they also like to share their enthusiasm.

On the other hand, a platform like Turo creates the opportunity to test a new drive such as the electric motor over a longer period of time. "Since I was often one of the first buyers at Tesla, they were always fully booked at Turo in the first few months," remembers Andre Haddad. So that he can use his current favorite car, a Tesla Model 3, ever gets to face, he has now bought a second version: a mini edition for his children.

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13 thoughts on “Private Vehicle Rentals: Turo is the Airbnb for cars”

  1. There are two major problems with this concept:
    1.) the expected excessive wear and tear from cocky tenants.
    2.) the topic of insurance and HU in Germany.
    3.) The subject of taxes on income
    I only give my cars to really good friends. This happens extremely seldom because really good friends only ask about this in an emergency.
    Why? Because the long-term maintenance of a high-quality car is expensive and also depends heavily on the way you drive.
    As a student, I also worked for a large car rental company and saw what was done with the cars. Up to the replacement of the engines.
    The subject of insurance and HU as well as taxes had never been clarified at Uber.
    This applies to rental in this country, as well as to commercial passenger transport. tight rules.
    That’s why rental cars from the big providers are relatively expensive.
    These can also spread the business risk across tens of thousands of vehicles.
    When in doubt, the private landlord is faced with a pile of junk, a long process and a few hundred euros in his pocket that never cover the damage.
    HC

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  2. Already existed in Germany 20 years ago. Was called cash-car. I was actually very happy with that back then. But it didn’t catch on.

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  3. Now sounds good at first.
    However, here again is the typical shared economy problem that all Silicon Valley money companies produce: they sit at home, count the money and take on zero responsibility! The provision of a corresponding software platform is now available as a ready-to-use modular solution – for which the commission is deducted. The "landlord" has to solve all anger and consequences himself – thank you very much.
    In addition, there are also legal and insurance issues whose solution in distant Frisco is of no interest as long as the money flow is right.
    But of course that applies to all similar concepts.

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  4. I worked for a large car rental company during my studies. So it would never occur to me to rent out my private car.
    And I would never rent such a vehicle myself, from someone who obviously needs it, from which I in turn allow myself to draw conclusions about the maintenance and other condition of the car.

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  5. Most would also not voluntarily publish their entire private life on the Internet. But billions do it anyway. Sufficient for a few dollars in sales.

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  6. There are other questions – vehicles for renting to self-drivers, for example, have to go to the HU (TuV) every year. That also leverages them "large German insurance company" not from. And it remains to be seen whether this will really step in when your own liability increases after a loss. It is not without reason that the liability for rental vehicles is almost three times as high as for private … Insurance processes usually take years…

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  7. It will never be suitable for the masses, it is more fun to rent cars that you would not otherwise drive. The whole thing about renting / renting is just annoying.

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  8. There are two things you should never give to strangers because you don’t know how they will be treated: your wife and your car.

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  9. Unfortunately, such providers usually have far too many hooks. So the risks for the car provider and especially for the tenant are usually far too high. The portal is of course fine in any case.
    There are often problems with an accident, with previous damage that has been overlooked, concealed or simply when one side is a fraudster. I also read somewhere that the tenant is also liable for defects (e.g. engine damage) during the rental period. I don’t know now if that’s true.

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  10. "Each vehicle is insured with a large German insurer for 100 million euros, which makes up the majority of the costs for Turo. On the other hand, hardly anyone would […] voluntarily give up their car if they were left with the costs in the event of an accident or if their own insurance would skyrocket."
    Accident all well and good, but what about excessive wear and tear?
    Anyone who lends a (super) sports car also wants to drive fast and if that is a switch with a sports clutch, I can vividly imagine what it has to go through. Or the tires.

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  11. Yeah right. Wear and tear. Hasn’t anyone thought of it yet. After all, nobody was renting an apartment, because it wears out too.
    Oh stop stop. That’s what the rent is for.

    Reply

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