Rental cars are having an Airbnb moment

[Shawn Knight]

Bottom line: Gig work is an incredibly popular way to earn some extra income, but it is becoming increasingly more complex and risky. Side hustles used to consist of menial tasks like delivering pizzas a few nights a week, bagging groceries, babysitting, or mowing lawns for some extra money. These days, aspiring entrepreneurs are leveraging technology platforms for more sophisticated ventures like renting out homes and automobiles, and putting themselves at great financial risk to do so.

The idea of renting out a spare vehicle has attracted thousands to sites like Turo or Getaround and for many, it works as intended. Others envision going toe to toe with car rental giants like Enterprise or Hertz and start amassing large fleets of vehicles to build their empire, only to realize that issues compound at scale.

The Wall Street Journal recently ran a story on the subject and stumbled across multiple horror stories. One vehicle owner said they had to retrieve a stolen car that was driven up the West Coast and abandoned at the Canadian border. Another said their Maserati was crashed into a wall and totaled, while a third owner spoke about a vehicle involved in a shooting.

Renters also have to contend with expenses like cleaning, insurance, and maintenance / repairs, all of which eat into revenue. There is also the risk associated with financing for those who are leveraging credit to build their rental fleets.

Dan Hurlbert, who used Turo to rent out high-end vehicles, grew tired of the service after about a year and tens of thousands of dollars in losses. "Turo makes you think it's going to be all sunshine and rainbows, and it just isn't," he said. "When the reality of it sets in, you're like, 'This sucks.'"

Chris Mullins, a Turo user that rents out his Polaris Slingshot four to six times per month for about $100 a day, said he is breaking even after factoring in his monthly note and the cost of upkeep. Down the road, however, he believes there is potential to come out ahead once more people learn about the service.

Image credit: Taras Makarenko, Pixabay

Permalink to story.

https://www.techspot.com/news/99539-rental-cars-having-airbnb-moment.html

 

[Theinsanegamer]

What kind of room temp caveman would think that renting out your multiple tens-of-thousands of dollars machine would be a good idea? Have these people NEVER dealt with rental equipment before? Why, in the modern age of swindlers and thieves; when accountability is a dirty word, would you trust ANYBODY with your stuff?

 

[dirtyferret]

Why, in the modern age of swindlers and thieves; when accountability is a dirty word, would you trust ANYBODY with your stuff?

other than excessive wear and tear, costly repairs, theft, insane insurance spikes, property damage to other people, possibility of your car used to hurt/kill someone and the ensuing law suit; there is no downside to this business model.

 

[Godel]

Due to the severe housing crisis in Australia, when I saw "Airbnb" and "cars" together in the article heading I initially thought they were renting cars for people to sleep in overnight.

 

[dalpilot]

Well said by all - very little upside and LOTS of downside.

 

[Alexmx]

other than excessive wear and tear, costly repairs, theft, insane insurance spikes, property damage to other people, possibility of your car used to hurt/kill someone and the ensuing law suit; there is no downside to this business model.

Heh, what could go wrong? I mean, there are already a ton of videos on youtube of people taking advantage of stuff they don't own.

"Want a V8 to play at a park lot? Rent a U-haul truck for as little as 25 dollars!"

 

[Arbie]

Old joke: What's the difference between a rental car and a Humvee?

Answer: The rental can go anywhere.

 

[hwertz]

I'm shocked I tells ya shocked! Who'd have thought someone renting an exotic car would drive the piss out of it!