turo host business plan

How to Start A Turo Car Rental Business: The Ultimate Step-by-Step Guide

Imagine the open road calling your name and the freedom to explore new destinations while making money simultaneously. 

Welcome to Turo, the car-sharing platform that’s turning heads and creating opportunities for savvy entrepreneurs. 

This guide will show you how to launch your Turo business, from analyzing your local market to optimizing your fleet . 

So get ready to rev up your engine and drive into a future full of possibilities!

Table of Contents

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Shortcut? 7 Steps to Start a Turo Business at a Glance

Step 1: dive into your local market.

Before starting a Turo business, it’s essential to understand the dynamics of your local market. 

This helps you make informed decisions about the types of cars to offer and how to cater to your potential customers.

Assessing Car Rental Demand

Begin by gauging the demand for car rentals in your area. Are there popular tourist attractions or business hubs nearby that attract visitors who need transportation? 

Then, check online forums, local events, and travel sites for insights on how many travelers visit your area and their transportation preferences.

Scoping Out the Competition

Next, identify your competitors and their offerings. Then, explore other Turo listings, traditional car rental agencies, and peer-to-peer car-sharing services in your area. 

Take note of the types of cars they offer, their pricing strategies, and any unique selling points they may have. 

This information will help you find a gap in the market that you can fill or inspire ideas on how to differentiate your Turo business from the rest.

Pinpointing Your Potential Clientele

Now that you have grasped the competition determine your potential clientele and their needs. 

Are you catering to budget-conscious travelers, luxury seekers, or adventure enthusiasts? 

Understanding your target audience will enable you to tailor your car selection, pricing, and customer service to meet their expectations.

Researching Popular Car Types in Specific Locations

Finally, research the popular car types in specific locations to ensure your Turo business stands out. 

For example, consider offering convertible sports cars to enjoy the desert sun if you’re in Phoenix . In Las Vegas , luxury cars are in high demand for the city’s glitzy image. 

If your area is known for outdoor adventures, consider providing SUVs or off-road vehicles for your clientele.

By thoroughly analyzing your local market, you’ll be well-equipped to make informed decisions as you build your Turo business, ensuring it’s tailored to the needs and preferences of your target audience.

Step 2: Crafting Your Turo Business Model

Once you’ve analyzed your local market, it’s time to determine the best business model for your Turo venture. 

Your choices will directly impact your target market, car selection, and marketing strategies. 

First, let’s explore the various types of rental car businesses and how to identify your unique selling proposition.

Types of Rental Car Businesses

There’s a wide range of rental car businesses you can choose from, each catering to specific customer segments. 

Some popular options include:

• Economy:  Budget-friendly options aimed at cost-conscious travelers or those needing a car for short-term use.
• Luxury:  High-end, premium vehicles for customers seeking a luxurious driving experience or special occasions.
• Adventure:  Rugged, off-road vehicles or vans with camping equipment for adventure enthusiasts and outdoor lovers.
• Electric:  Environmentally friendly electric or hybrid cars for eco-conscious customers.

Identifying Your Target Market

With a clear understanding of the various rental car business types, it’s time to identify your target market.

Consider the local market analysis you conducted earlier and which customer segments are underserved or have the most significant potential for growth. Your target market will influence your choice of vehicles, pricing, and promotional strategies.

Selecting a Niche or Unique Selling Proposition

You’ll need a unique selling proposition (USP) that sets your business apart to stand out in the competitive Turo marketplace. 

This USP could be a specific type of vehicle, an exceptional level of service, or unique add-ons that cater to your target market’s needs. 

Some ideas for a niche or USP include:

• Specialty Cars:  Offer a fleet of unique or exotic cars, like Teslas, classic cars, or high-performance sports cars.
• Family-Friendly Options:  Cater to families with minivans or SUVs equipped with child safety seats, entertainment systems, or snack packs for long drives.
• Road Trip Ready:  Provide vehicles outfitted with camping gear, roof racks, or bike carriers for adventure-seekers planning road trips.
• Business Traveler Solutions:  Target business travelers with luxury sedans or high-speed Wi-Fi and charging stations in each car.

By carefully selecting your rental car business model, target market, and unique selling proposition, you’ll set the foundation for a successful Turo venture that appeals to the right customers and stands out.

Step 3: Picking and Acquiring the Perfect Car(s) for Your Turo Business

Choosing the right car(s) for your Turo business is crucial, as it directly impacts your customers’ satisfaction and your overall success. 

There are several factors to consider when selecting and acquiring your vehicle(s), such as whether to buy new or used, lease or purchase and which specific car types to invest in.

New or Used Car for Turo

Choosing a new or used car for your Turo business depends on your budget, target market, and personal preferences. 

For example, new cars may have fewer maintenance issues and offer a unique driving experience, but they come with higher price tags. 

On the other hand, used cars can be more affordable, but they might require more maintenance and potentially have higher mileage.

Consider your target market’s preferences and how the car’s age and condition align with your unique selling proposition. 

For example, a luxury rental business might benefit from offering new or low-mileage vehicles, while an economy-focused company might prioritize affordability.

Lease or Buy a Car for Turo

Another important decision is to lease or buy a car for your Turo business. Buying a car outright means you’ll own the vehicle and can sell it later to recoup some of your investment. 

However, this option requires a more substantial upfront cost.

Leasing offers lower monthly payments and allows you to acquire newer cars more frequently. 

Be careful:  Leasing contracts often have mileage restrictions, which could be challenging for a Turo business that regularly rents cars.

Using a Leased Car on Turo: Pros, Cons, and Considerations

While using a leased car on Turo is possible, weighing the pros and cons is essential. 

Some advantages of a hired car include lower monthly payments and access to newer vehicles. 

However, there are potential drawbacks, such as:

• Mileage restrictions, which could limit your rental opportunities
• Violating the terms of your lease agreement
• Possible increased wear and tear on the vehicle

Before using a leased car on Turo, read your lease agreement carefully and consult the leasing company to ensure you’re not violating any terms.

Step 4: Crafting a Comprehensive Business Plan for Your Turo Venture

Creating a solid business plan is essential for the success of your Turo car rental business. 

A well-structured plan will guide you through setting up and growing your business, ensuring you’re prepared for the challenges ahead. 

Your business plan should cover key aspects such as pricing strategies, marketing, and financial projections.

Develop Pricing Strategies

Setting the right prices for your car rentals is crucial to attract customers and maintain profitability. 

Consider local market demand, competition, and your target audience to determine the best pricing strategy.

Additionally, take into account the following:

How Much Money Can You Make on Turo

Research average rental prices for similar cars in your area and consider your ongoing costs (such as insurance, maintenance, and depreciation) to determine your potential turo earnings . 

Remember that your payments will also depend on the popularity and utilization of your vehicles.

When Does Turo Pay Out

Understand Turo’s payment schedule and factor it into your cash flow management.

Typically, Turo pays hosts within three days after a trip ends, so managing your finances is essential.

Create a Marketing Plan

Promoting your Turo business effectively is vital to reach potential customers and building a strong reputation. Therefore, your marketing plan should include the following:

Best Practices for Marketing a Turo Car Rental Business

Research and implement proven marketing strategies to boost your visibility and bookings. 

For example, showcase high-quality photos and detailed descriptions of your vehicles, encourage and respond to customer reviews, and offer incentives for repeat customers.

Utilizing Social Media and Online Platforms

Leverage social media platforms like Facebook, Instagram, and Twitter to showcase your cars and engage with potential customers. 

Share relevant content, such as travel tips, local attractions, and customer testimonials, to build trust and credibility.

Advertise Your Turo Car

Experiment with different advertising methods , such as paid online ads, partnerships with local businesses, or even sponsoring local events. 

Track your advertising results and adjust your strategy accordingly to maximize your return on investment.

Financial Projections and Budgeting

A critical part of your business plan is creating realistic financial projections and managing your budget effectively. 

To do this, consider the following:

How to Report Turo Income

Know your tax obligations and ensure you accurately report your Turo income . 

Consult with a tax professional to understand applicable laws and regulations in your area and properly track your income and expenses.

By developing a comprehensive business plan that covers pricing, marketing, and financial management, you’ll be well-equipped to start and grow a successful Turo car rental business.

Step 5: Navigating the Legalities: Register and License Your Turo Business

Starting a Turo business involves several legal requirements, including registering your business with local authorities and obtaining the necessary licenses and insurance. 

Ensuring your business complies with these regulations will help protect your interests and provide a solid foundation for your car rental venture.

Legal Requirements for Starting a Turo Business

Before you start renting cars on Turo, familiarize yourself with the legal requirements specific to your area. 

These requirements may include forming a legal business entity, registering with tax authorities, and complying with local transportation regulations.

Register Your Business with Local Authorities

You must register your business with the appropriate local authorities to operate legally. 

The registration process varies depending on your location. Still, it typically involves choosing a business name, selecting a business structure (such as a sole proprietorship, LLC, or corporation), and filing the necessary paperwork.

Obtain Necessary Licenses and Insurance

Securing the proper licenses and insurance is crucial for protecting your Turo business and meeting legal requirements. Consider the following:

Business License

You may need a specific business license to operate a car rental service, depending on your location. 

Check with your local government to determine what permissions are required for your Turo business.

Commercial Auto Insurance

As a Turo host, you must ensure your vehicles are adequately insured. While Turo provides some insurance coverage, you may need something else. 

Consult an insurance professional to determine the appropriate level and type of coverage for your business.

General Liability Insurance

In addition to auto insurance, obtaining general liability insurance is a good idea to protect your business from potential legal claims or damages that may arise from accidents or other unforeseen events.

By carefully following the legal requirements, registering your business with local authorities, and securing the necessary licenses and insurance, you’ll create a strong foundation for your Turo car rental business . 

This will enable you to focus on growing your venture and providing great customer service.

Step 6: Listing Your Car on Turo: A Step-by-Step Guide to Start Renting

Now that you’ve got the foundation of your Turo business in place, it’s time to list your car and start renting. 

Follow these steps to create a compelling listing, set rental prices and availability, manage bookings, and boost your car rental success.

Create a Compelling Turo Listing

The first step in renting your car on Turo is creating an attractive and engaging listing that will catch the eye of potential renters.

What Makes Your Car Unique on Turo

Highlight the unique features of your car that set it apart from the competition. 

This could include special amenities, fuel efficiency, or the vehicle’s performance. Then, write a captivating description that showcases these unique aspects and encourages renters to choose your car.

Set Rental Prices and Availability

Setting competitive rental prices and offering flexible availability is crucial in attracting renters—research similar listings in your area to gauge the going rates and adjust your prices accordingly. 

Also, consider offering discounts for longer rental periods or repeat customers.

In addition to pricing, establish your car’s availability to renters. You can choose specific dates and daily or weekly availability. 

Update your calendar regularly to ensure accurate information is displayed to potential renters.

Manage Bookings and Communication with Renters

Maintaining clear and prompt communication with renters is essential for a successful Turo business. 

Respond quickly to booking requests and inquiries, and provide clear instructions for pick-up and drop-off.

Use the Turo platform to communicate with renters and ensure all conversations are documented. This will be helpful in case of disputes or misunderstandings. 

In addition, ensure excellent customer service to encourage positive reviews and repeat business.

How to Get More Bookings on Turo

Boosting your bookings on Turo can be achieved through marketing and providing an excellent rental experience. Here are some tips:

• Regularly update your listing with high-quality photos and accurate information.
• Offer competitive pricing and flexible availability.
• Encourage renters to leave positive reviews.
• Utilize social media and other marketing channels to promote your car rental business.

Can You Have Two Turo Accounts?

Turo generally does not allow users to have multiple accounts. However, if you have a legitimate reason for needing more than one account, you can contact Turo support to discuss your situation. 

Remember that having multiple accounts can lead to confusion and increased management workload.

You can create a successful Turo car rental business by following these steps and paying attention to detail. 

Focus on showcasing your car’s unique features, offering competitive pricing and availability, and maintaining excellent communication with renters to ensure a smooth and profitable rental experience.

Step 7: Optimize Your Turo Business for Long-Term Success

Once your Turo business is up and running, it’s essential to focus on optimization strategies to maximize your profits and customer satisfaction. 

Implement these techniques to monitor and adjust your pricing, maintain high-quality customer service, become a Turo Superhost, and scale your business.

Monitor and Adjust Pricing Strategies

Consistently reviewing and adjusting your pricing strategies is key to staying competitive. 

Analyze your booking data, track seasonal trends, and monitor competitor pricing to make informed decisions on changing your rental rates. 

Flexibility and adaptability in pricing will ensure you continue to attract renters and maximize your revenue.

Maintain High-Quality Customer Service

A successful Turo business thrives on positive customer experiences.

To maintain high-quality customer service, ensure prompt communication, smooth rental processes, and well-maintained cars.

How to Remove a Review on Turo

While you should always strive for positive reviews, there may be situations where you feel a review is unfair or inaccurate. 

To request the removal of a review on Turo , contact customer support and explain why the review should be removed. 

However, remember that Turo has strict guidelines for review removal and may not approve your request.

Implement Strategies to Become a Turo Superhost

Becoming a Turo Superhost can significantly boost your business by attracting more renters and increasing your credibility. 

To achieve Superhost status, focus on the following:

• Consistently earning high ratings and positive reviews.
• Providing excellent customer service.
• Maintaining a high response rate and quick response times.
• Ensuring a low cancellation rate.

Scale Your Business by Adding More Cars or Locations

As your Turo business grows, consider expanding your fleet or adding new locations. 

Analyze market demand, identify gaps in the market, and invest in cars that will appeal to a broader range of renters. 

Expanding to new places can also help you reach more potential customers and increase revenue.

Using Turo for Ridesharing Services Like Uber

If you’re looking for additional ways to optimize your Turo business, consider using your rental cars for ridesharing services like Uber or Uber Eats . 

This can help you generate extra income when your vehicles are not rented through Turo. However, remember that you must comply with local ride-sharing regulations and insurance requirements.

By focusing on these optimization strategies, you can ensure the long-term success of your Turo business. 

Continuously monitor and adjust your pricing, maintain excellent customer service, strive for Superhost status, and consider expanding your business to maximize your profits and customer satisfaction.

Frequently Asked Questions

How to become an all-star host on turo.

To achieve All-Star Host status on Turo , meet criteria like a 90% five-star trip rate, 95% commitment and response rates, and a 90% acceptance rate. Additionally, have a completed trip for each of your four active vehicles in the past year and earn $36,000+ annually. Benefits include a badge, better search visibility, and a yearly $100 travel credit.

Does Turo allow salvage cars?

Turo disallows salvage cars , including vehicles with prohibited branded titles. Hosts must have a clean title to list on Turo. In addition, the platform doesn’t cover claims for salvage cars, ensuring vehicles meet their exclusivity policy.

How many miles can a car have on Turo?

Turo’s eligibility requires cars to have under 130,000 miles but may accept well-maintained cars exceeding this. Car owners set mileage limits, but Turo generally allows a maximum of 200 miles per day.

How old can a car be on Turo?

In the US and Canada, Turo allows cars up to 12 , with special considerations for 12-25-year-old vehicles. Cars must be in excellent condition and have a fair market value of up to $85,000 to qualify.

Starting and optimizing a Turo business can be rewarding and profitable when approached strategically. 

By conducting thorough market research, choosing the right business model and vehicles, creating a solid business plan, and continuously optimizing your strategies, you can maximize your potential for success. 

Stay adaptable and focused on providing excellent customer experiences, and you’ll be well on your way to establishing a thriving Turo car rental business.

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Sebastian is the numbers nerd from Rentalero. He loves to compare and check car rental companies. What costs when, where which rental car? Sebastian knows!

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Turo Commercial Host: A Guide to Beginners

Since 2012, Brett Helling has built expertise in the rideshare and delivery sectors, working with major platforms like Uber, Lyft, and DoorDash.

He acquired Ridester.com in 2014, the first ridesharing marketplace, leveraging his direct experience to enhance the site. His insights at Ridester are recognized by Forbes, Vice, and CNBC.

Expanding his reach, Brett founded Gigworker.com and authored “ Gigworker: Independent Work and the State of the Gig Economy “, demonstrating his comprehensive knowledge of the gig economy.

More about Brett | How we publish content

Ridester articles are reviewed by gig economy experts before getting published to ensure accuracy, thoroughness, and quality. Learn about our editorial standards .

Key Takeaways

• Turo Commercial Hosts are rental businesses listing vehicles on Turo with their own insurance, not Turo’s coverage.
• These hosts, distinct from regular hosts, use commercial insurance for multiple listed vehicles, offering diverse rental options.
• The term “commercial host” is user-defined, based on insurance choices and fleet size, not an official Turo category.
• Commercial Hosts gain higher earnings and more control by managing larger fleets and assuming more risks with their insurance.
• Understanding What “Commercial Host” Really Means
• Turo Host Insurance Plans
• Benefits of Being a Turo Host Without a Protection Plan
• How Much Can You Earn as a Higher-Protection-Plan Turo Host?
• Host Requirements
• Vehicle Requirements
• Insurance Requirements
• Final Thoughts

What is a Commercial Host on Turo?

A Commercial Host on Turo is an independent car rental company that lists its vehicles on the Turo platform.

Unlike typical Turo hosts who are private individuals sharing personal vehicles, Commercial Hosts are professional businesses. They provide their own commercial rental insurance to renters, bypassing Turo’s coverage.

This allows renters to access a wider range of vehicles and services, often with different insurance and rental terms compared to standard Turo peer-to-peer rentals.

Turo doesn’t officially categorize its hosts as regular or commercial hosts. All Turo hosts follow the same platform rules for drivers, vehicles, and insurance.

Once you meet Turo’s host criteria, you can list as many cars on the platform as you have available. Turo regards you as a host, irrespective of whether you have one car or seventy listed on its platform.

The term “commercial host” seems to be how Turo hosts distinguish themselves by their protection plan and risk tolerance. These hosts decline Turo’s protection plans and use their own commercial rental insurance.

It may also refer to Turo hosts who own companies and list their company-owned vehicles on the platform.

The origins of this distinction will become more clear when we discuss Turo’s insurance plans .

Brett’s Take: Thoughts From an Expert

Hosts switching to commercial insurance can potentially save money by opting out of Turo’s insurance and pocketing a higher percentage of earnings.

However, there are concerns about the feasibility of commercial insurance for small fleets and how filing claims might affect their insurance status.

My suggestion (as I am sure other experienced hosts will also tell you) is to wait on becoming a commercial host until you have built a large, established, sustainable rental car business.

By then, you should have a very good understanding of fleet management and the risks associated with renting a large number of cars.

Turo hosts are required to have personal insurance to list their cars on the platform.

Additionally, they should choose one of the platform’s host protection plans, namely the:

All of the above plans include up to $750,000 in third-party liability insurance from Travelers (Turo’s insurance partner). Also, the level of protection a host receives from Turo depends on the protection plan they select for their listings.

The higher the plan, the less protection a host receives from Turo. In fact, hosts that choose the 80 Plan and above don’t get any protection beyond Turo’s eligible damage costs.

They’ll also have to cover a portion of the damage costs (their deductible) before Turo steps in to reimburse the difference.

The table below provides a side-by-side comparison of all Turo’s protection plans:

At the same time, the less protection a host receives from Turo, the more of their earnings they get to keep.

Turo users who opt for the 80 plan and above have to assume more risk and do everything themselves. If a guest damages these hosts’ cars, they’re responsible for seeking reimbursement.

Turo doesn’t explicitly state that companies can list on its platform. However, the platform allows hosts to get commercial rental insurance for their vehicles.

As clarified by Travelers in the FAQ section of this article , commercial insurance protects company-owned vehicles, not personally owned-ones.

What the above implies is that Turo hosts who don’t own companies can’t get commercial rental insurance.

In other words, by forgoing Turo’s protection plans, an individual who lists a personally-owned vehicle solely relies on their personal insurance.

This risk/reward balancing act seems to be where the made-up distinction between regular and commercial Turo hosts originates.

We covered a high-level breakdown of the plans above, but we suggest you also watch this video that also does a great job explaining the protection plans:

Turo hosts who stomach a higher risk—and therefore are given the Turo commercial host moniker—do so because of the following benefits:

• High Earning Potential : As a higher plan host, you can earn thousands of dollars renting your cars to guests. Turo’s higher protection plans let you pocket a significant chunk of the proceeds from your car-sharing business.
• Lenient Vehicle Standards : The company doesn’t make renters jump through too many hoops before they can throw vehicle listings up on the app. If your vehicle is in decent condition and its mileage isn’t considerably high, it’ll likely meet Turo’s vehicle standards .

In a sense, higher-plan hosts bank on their ability to screen Turo guests. When guests treat their vehicles with care, these hosts’ gambles pay off.

Your earning potential as a host depends on several elements, including the number of vehicles in your fleet.

Turo provides annual estimates on its website, which we’ve listed in the table below:

Turo’s fine-print disclaimer states that the above figures relate to US-based hosts. They were calculated assuming that the hypothetical host rented their vehicle for at least seven trip days per month.

Please note that the above estimates don’t take costs like vehicle maintenance, insurance, deductibles, and more into account.

Related: How Much Can You Make on Turo?

Turo Hosting Requirements

If you’re planning to list your vehicle on Turo, you’ll need to meet the following requirements:

Turo doesn’t specify any criteria its hosts must meet on its website. That said, it’s safe to presume that you’ll need to be at least 18 and either own the car or be authorized by the person who does to list it.

The platform has also set hosting standards  it expects its hosts to adhere to. At a glance, they are:

• Being responsive to guests
• Accepting trips
• Avoiding cancellations
• Maintaining good ratings
• Cleaning and fueling your car regularly

According to Turo, upholding the above standards optimizes the platform for your guests and you.

Your vehicle must meet the following listing criteria:

• Style: Passenger vehicle
• Ownership: You must be the owner or authorized by them to list the vehicle
• Age: No more than 12 years old, except for specialty vehicles
• Mileage: Its mileage must be decent , not exceeding more than 130,000 miles
• Value: The car must have a fair market value of up to $200,000

Aside from the above requirements, which we go into more detail about in another article , Turo also has state-specific vehicle requirements.

For example, vehicles in New York must have an inspection sticker that’s valid through the entire month. Read Turo’s US Host Car Sharing Regulations  to learn more.

As previously mentioned, Turo hosts require personal insurance. You’ll need to keep copies of the following documents in your vehicle at all times:

• Personal insurance card
• Vehicle registration
• Turo insurance card

Turo also expects you to tell your guests where to find them in the vehicle.

Turo doesn’t distinguish between regular hosts and commercial ones, and neither should you. If you plan to list on the platform, the main thing to understand is how much risk your chosen protection plan exposes you to.

As long as your vehicle meets Turo’s requirements, you can list as many vehicles as possible and build the car-sharing business of your dreams.

Related: Is Turo worth it?

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How Does Turo Work: Turo Business Model and Revenue Model Revealed

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Home » Blog » Business Punch

Car rental businesses are the new trend and the one leading this trend is the Turo business model. The peer-to-peer rental businesses are expected to grow by approximately 700% in the coming eight years. There are a number of factors behind the driven growth, including fewer carbon emissions, which leads to a greener environment, and a growing global preference for a minimalist lifestyle. 

Both incumbents and new entrants in the peer-to-peer automobile rental business , of which Turo is a significant player, are focused on inducing sustainable and minimalist growth.

Turo has been compared to Airbnb, is as straightforward as they come. You only need to provide a place and a date. Furthermore, users can narrow down their search by picking a specific brand of a car, type ( convertibles/vans), and model.

You can also get your app like Airbnb, click here !

Turo Stats and Facts: Funding & Major Milestones

Turo, which began as RelayRides in 2010 and now has a fleet of over 350,000 cars, is a peer-to-peer car rental platform. It has achieved a lot of milestones. Let’s have a look at some of the facts about Turo:

• Founders: Shelby Clark
• Launched in: August 2009
• Headquarters: San Francisco, California
• The Number of App Users: 10 million
• Industry: Car Sharing
• Company Valuation: more than $1 billion
• Total Funding Amount: $502.6 million

The Turo business model has inspired a lot of business owners and entrepreneurs. Many of them plan to follow this business model to launch their own peer-to-peer car-sharing business in the market. Here is the success timeline of Turo:

Turo Success Story

Jonathan Tilmann and Shelby Clark established Turo, a peer-to-peer car-sharing platform, in 2009.

When Tilmann and Clark were looking for a means to share a car for a weekend vacation, they came up with the idea for the company. They noticed that no service existed that allowed users to accomplish this, so they invented one.

Turo is a unique car-sharing service that allows users to hire out their automobiles to others. This allows people to supplement their income by renting out their vehicles when they are not in use. It also allows folks to have a different car to drive while on vacation or business. Turo was once known as RelayRides, and it allowed customers to hire out their automobiles to others. The company changed its name to Turo in 2012 and began renting automobiles from businesses rather than individuals.

Since then, the company has only seen growth!

How Does Turo Work: Turo Business Model Canvas

In this 21st century, after the new technological advancements, the online P2P car-sharing industry also grew. But, a single business model cannot satisfy the needs of a huge range of targeted audiences. This is the reason, Turo had to adjust and broaden its business model. This business made sure that the company not only offered a car-sharing service but also helped in payment management. This made Turo’s business model successful and compatible with today’s digital world.

How Turo Works:

• Users register into the platform using their email address or contact number. 
• They list their vehicle on the application and also provide necessary information including the brand of the vehicle, its type, color, etc.
• Customers check out these vehicles and rent the one that suits their requirements. 
• Turo allows its users to rent a vehicle for some amount of time. 

Isn’t this an excellent way for people to earn money by just renting out their vehicle? There are so many people in the market who find this idea fascinating. This proves that there is a huge scope for your own car-sharing business in the industry. Get in touch with our expert developers to launch your business online at the most affordable price. 

The Turo business model looks like this:

Turo Revenue Model: How Does Turo Earn Money?

The Turo business model consists of very effective and well-planned monetization strategies.

Peer-to-peer car rental businesses charge a commission fee on every car rental booking. This is one of the most popular sources of income. Turo has a commission fee plan to charge approximately 25% on bookings. 

The business also charges its customers if the given limit of kilometers is exceeded. An additional kilometer fee is charged. Host fees , such as damage claim filing charges (applicable only if pre and post-trip vehicle condition photographs are not uploaded), order cancellation charges, vehicle misrepresentation charges,  maintenance policy violation penalties, and more, add to the monetization strategies in the Turo business model.

Turo also charges its customers a variety of guest fees . EV charging fees, petrol replacement prices, additional usage fees, claims processing fees, guest no-show charges, late return fees, and smoking and pet policy violation fines are just a few of the fees.

7 Lessons You Should Learn From Turo’s Success

Here are 5 lessons that you can learn from the success of the Turo business model:

1. Find Your Unique Value Proposition

It’s critical to start by defining your value proposition when presenting your company. Turo does a fantastic job of emphasizing how unique its service is and how it can save car owners money.

2. Concentrate on the Issue at Hand.

One of the most common mistakes made by companies is focusing too much on their product rather than solving the problem. Turo described the problem they’re trying to solve (high automobile ownership and maintenance costs) and how their service can help.

3. Know Why Your Solution is Superior to the Alternatives

You must know why your solution is superior to the alternatives to persuade investors to invest in your firm. Turo showed how their service is less expensive, more convenient, and more environmentally friendly than traditional automobile rental.

4. Demonstrate That Your Product has a Market

It is critical to demonstrate that your product has a market. Turo accomplishes this by emphasizing the vast potential market for its service and demonstrating how it may be used.

5. Demonstrate Your Team’s Experience and Expertise

It’s a no-brainer to emphasize your team’s experience and skills while launching your business in the market. Turo features a well-designed team slide that emphasizes their team members’ backgrounds and experience in the automobile rental sector.

6. Have a Clear Picture of the Future

You must demonstrate that you have a clear plan for the future to persuade investors to invest in your firm. Turo accomplishes this by laying out its five-year strategy and showing how they intend to expand its company.

7. Anticipate and Respond to Potential Complaints

Investors are generally wary of new businesses, so being prepared to respond to any potential objections is critical. Turo accomplishes this by anticipating and resolving common concerns, such as a lack of experience and a high cost of ownership.

Turo has a huge client base because of its unique selling and value proposition. The success story of the Turo business model made a lot of business owners follow its footsteps of Clark. The question that comes up now is, how will this success story help in scaling your business?

Wrapping Up

For a P2P car rental business , choosing a car rental software, business model, and revenue model are just a few points on the road map. Following that, businesses can concentrate on licensing, branding, pre-launch marketing, setting up newsletters, selecting distribution channels, and planning announcements while the online P2P automobile rental platform is being developed.

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I used Turo to scale my business by renting out 6 'bread-and-butter' vehicles. Last year I made $72,000 and I earn money even when I'm not physically working.

• After getting laid off, Lavell Riddle started driving for Uber and Lyft to pay his bills.
• In 2021, he rented out five vehicles on the car-sharing app Turo to make additional income.
• Last year, Riddle earned $72,020 in income on Turo.

This as-told-to essay is based on an interview with Lavell Riddle, a 40-year-old Turo host in Detroit who started a side hustle on the car-rental app in 2021 .

Turo is a car-sharing app that allows people to rent out their cars to customers for a daily rate.

Last year, Riddle earned $72,020 in income from renting out six cars on Turo, which Insider verified with documentation. His vehicles include a Jeep Compass, Kia Sportage, and Honda HR-V.

The following has been edited for length and clarity.

I'm a big car fanatic and drive for a living 

In 2016, I got laid off from my job in sales management, so I started driving for Uber and Lyft to pay my bills. I started off with the leased car I used to go to work. Eventually, I bought a vehicle that was dedicated to driving people.

I also started a small black-car service that usually takes people to and from airports and business events. My vehicles have dual purposes, so when I don't have any bookings, I can pick up ride-hailing gigs.

I bought a house using the income I made from Uber and Lyft, but at that time, I was burned out. One of my friends had just bought a personal vehicle and another vehicle to throw on Turo. He showed me the financials, and I saw that it made sense. 

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As soon as I closed on my house, I bought five vehicles. I used my personal credit as a personal guarantor for my business credit. I got loans for the vehicles, and because I had good credit, I didn't put any money down. I entered this business with zero money out of my pocket. 

I started as a Turo host in 2021. Now I can have my assets working, even when I'm sleeping, on vacation, or just tired of working. 

I had a competitive advantage starting with so many cars

For Turo, every region has a different customer. Here in Detroit, people don't fly here to take a bunch of Instagrams of fancy cars — they're people who fly in for business or just need a vehicle to get them to work.

So I got a lot of small SUVs and a sedan. I call them the bread-and-butter vehicles. They're new but nothing glamorous and have all-wheel drive.

My Jeep Compass worked great for me, so I later purchased the 2019 version of the same Jeep. Now I have six cars on Turo. I had a competitive advantage of starting with so many vehicles.

The average period a car is rented out is about three to four days, but sometimes it's as long as three or four months. I get a lot of clients who come back and book for longer periods.

In Michigan, rates follow the school schedule

In Michigan, the slow season is when the kids go back to school. During this time, my rates during the week and sometimes the weekend will be about $45 to $60 a day to be competitive in the market. During the busiest season, my rates go from around $55 to $75 during the week, and it goes up $15 on the weekend.

I got into Turo to help people and make extra money. But I didn't realize how much it was solving problems for people until I became a host and heard the testimonies customers told me.

People actually needed these vehicles, especially when there were no rental vehicles in my market and car prices were so expensive. It gives people an affordable way to go to work, get around, or go on vacations.

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Table of Contents

What is Turo?

Turo rental car prices: are they a good or bad deal, when renting a car with turo is a smart money move, is renting a car on turo worth it.

Ever considered renting a car from the actual owner? Turo, a peer-to-peer car sharing platform, lets you do just that. The car rental alternative allows you to potentially save money compared to traditional rentals. Plus, it unlocks more potential places to rent cars beyond standard rental car facilities.

But is Turo the right fit for you? Here's your guide to renting a car through Turo, including the pros, the cons — and any potential fees to watch out for.

Turo is a peer-to-peer car sharing platform that allows car owners to rent out their own cars to regular people. Consider it a sort of Airbnb for cars .

Peer-to-peer car sharing platforms are growing in popularity. The global car sharing market was worth $2.9 million in value in 2022, and is expected to grow 20% annually from 2023 to 2032, according to January 2024 data from market researcher Allied Market Research. That would make the market for car sharing services, including Turo, worth $17.8 million by 2032.

Interest in Turo especially exploded in the early years of the COVID-19 pandemic, which was an era of high rental car prices , high demand for cars to take on roadtrips and limited rental car availability. After all, skyrocketing rental car prices became one of the biggest pandemic-era travel stories as they hit record highs in July 2021. Given all that, alternative rental car services like Turo were often a lifesaver.

And while rental car prices have eased from their record highs set in the early years of the pandemic, they're still high. Car rental prices in February 2024 are up 23.6% versus February 2020 — the last month pre-lockdowns in the U.S.

But while Turo car rentals can provide an excellent rental car alternative, it’s not necessarily better. It's also not always cheaper. Here are some of the times you might consider booking with Turo, and what to look sorts of fees and potential pitfalls to look out for if you do:

Turo prices are highly variable. Sometimes they can be cheaper than traditional rental cars because car owners set the prices.

A car owner who now works from home and has minimal need for a car during the week might be inclined to make it available on Turo at a low price to make some extra cash or even to get some value out of a car that's otherwise sitting idle.

Many owners offer discounts for longer trips, and some offer discounts to guests who book at least a week in advance.

Beware of extra Turo fees

The total cost to rent on Turo might balloon once extra fees kick in.

A 10-hour rental advertised at $30 per day can easily become twice that. In this example, there’s a mandatory $15 trip fee. Then, Turo adds standard protection for $12 by default (though you can decline damage protection). You might include extras such as a pet fee, child safety seat, unlimited mileage or prepaid refuel.

Here are some examples of Turo fees you may be on the hook for before checking out:

Turo trip fee. Turo adds a trip fee at checkout that goes to Turo (not the owner). Fees vary, but in the U.S., trip fees range from 2.5% to 100% of the overall price. 

Turo young driver fee. Folks under 24 owe a young driver fee (a minimum of $50 per day if under 21 or $30 per day if under 25 in the U.S.).

Miscellaneous extras. You may also owe other fees including airport fees, pickup or return fees, and optional extras like unlimited mileage (many rentals have a mileage cap).

And the fees might not end there, adding to why Turo could be wrong for folks anxious about potentially unknown costs.

Reimbursement bills. Hosts can send renters a reimbursement invoice for all sorts of potential situations. That might include fuel replacement, distance overages, failure to return an EV with charge, tickets and tolls, if applicable. 

Turo cleaning fees . If you return a car in a condition that violates Turo’s cleaning and disinfection policy, the host can report the issue to the company. If Turo sides with the host, you’ll owe $150 for the cleaning violation plus a 3% processing fee.

Turo explicitly says that renters “aren’t expected to clean or disinfect the car before returning it,” but there's a gray area between what Turo considers normal wear and tear versus what teeters into violation territory.

“Significant amounts of pet hair” are a violation, as are “major stains or residue,” but “minor food or beverage spills” are OK.

Plenty of renters have documented negative experiences of receiving violation penalties they felt were unjustified, leading to back and forths with customer service to get those fees removed — or just paying the fine.

Your personal or credit card insurance may not apply to Turo

Turo offers three optional protection plans at an additional cost, each with increasingly more insurance coverage: a minimum, standard and premier plan.

Depending on the level of add-on insurance from Turo selected, prices in the U.S. start as low as $10 per rental day. It’s pretty easy to compare and add plans at checkout.

You can decline protection, but you (or possibly your own personal insurance company, if covered) are responsible for all costs related to physical, mechanical, and interior damage, plus administrative claims fees and appraisal costs.

Usually NerdWallet recommends holding a credit card that offers car rental insurance , which provides some level of free protection for rental cars paid for on that card. Some of the best credit cards with car rental insurance benefits even offer primary rental car coverage, so you don’t have to use your personal auto insurance. 

However, when renting on Turo, don’t assume your personal auto insurance policy or credit card coverage works in the same way it applies to traditional rental cars.

Many credit card car rental insurance benefits specifically exclude coverage for peer-to-peer car rental companies , such as Turo.

“Turo is not a rental car company,” according to a post on Turo’s site. “We’re a peer-to-peer car-sharing platform, so credit card companies may provide no coverage for a car booked through Turo.”

Popular credit cards consumers leverage for car rentals

To better understand if Turo is the right fit for your car rental needs, compare its three protection plans with insurance, reimbursement and rewards rate details about credit cards commonly used when renting a car. Options can include:

on Chase's website

on American Express' website

Primary rental car coverage with reimbursement up to the cash value of most rental vehicles.

Booking a car rental through Chase Ultimate Rewards® earns 5 points per dollar spent.

Redeeming points to book travel through Chase — including renting cars — gives you 25% more value per point.

Earn unlimited 10x miles on rental cars booked through Capital One Travel.

Auto rental collision damage waiver.

Complimentary elite status with Avis, Hertz and National, which entitles the member to upgrades and discounts.

Secondary rental car coverage.

Other benefits include expansive airport lounge access and hundreds of dollars' worth of travel credits.

Terms apply.

Primary rental car coverage with reimbursement up to $75,000.

Booking a car rental through Chase Ultimate Rewards® earns 10 points per dollar spent.

Redeeming points to book travel through Chase — including renting cars — gives you 50% more value per point.

Cardholders eligible for special benefits from Avis, National and Silvercar.

There are a few situations where renting a car through Turo makes especial sense:

If you can pay for your rental car upfront

Turo has a generous cancellation policy, allowing you to cancel free of charge up to 24 hours before the trip starts. Trips canceled within 24 hours of the start time are typically entitled to a partial refund.

Refunds are issued immediately, though it can take three to five business days to receive the money.

While Turo’s cancellation policy is relatively generous, you still must pay upfront.

In contrast, most rental car companies allow payment at the counter. That’s convenient because if your travel plans change and you can no longer rent the car, you likely won’t be on the hook for a rental car reservation you didn’t show up for (though some do charge a no-show fee).

If Turo is more convenient to your destination

Turo operates in the U.S., Australia, Canada, France and the U.K.

What’s unique about Turo is the range of places you’ll find the vehicles. Traditional rental car companies typically operate in places with a lot of tourists, such as airports, downtowns and hotels. But with Turo, you could very well find a car available from the home next door.

The map’s purple dots indicate available vehicles. You might find one in a location far more convenient than the nearest traditional rental car.

That’s convenient for someone who is usually car-free but wants to rent one every once in a while from a neighbor. Travelers who want a car only for part of their trip might skip the airport rental car and rent a Turo nearby for the days they need it.

But Turo isn’t available in every city. While it’s now available in all 50 states, it wasn’t until June 2022 that Turo launched in New York state. And within each state, Turo is still expanding. Availability is largely contingent upon whether a host is willing to post their car for rent. 

If you need special pickup and drop-off locations or times

When renting from many rental car companies, you’re tied to their operating hours. That’s annoying if your flight lands at 9 p.m. but the rental car company closes at 8.

Many Turo rentals, however, are available for drop-off and pickup 24/7 because of a built-in service called Turo Go. Turo Go allows renters to unlock cars directly from the Turo app, thus never needing to meet the host in person.

Other hosts prefer in-person exchanges. The owner might pick you up at the airport and drive you to your hotel before handing over the keys (typically for an additional fee, though some hosts offer the service for free).

Turo’s delivery service can be especially convenient if you want the car for only a few days or a few hours. 

While the range of pickup options can certainly be a pro, it also adds layers of complication — and it means your next Turo experience won’t be exactly like your last.

Read the pickup and drop-off rules carefully, as they vary by owner. Some cars are parked in facilities requiring a fee to exit. While Turo requires hosts to disclose such fees in their vehicle listing, it’s still one more annoying cost.

While Turo Go can certainly be convenient, you must have Wi-Fi or cellular data to unlock the car at the start of the trip. And you won’t have in-person customer support, which might pose challenges if you run into any problems upon pickup.

For one-way rentals, it’s tricky. You’re not able to book one location for pickup and a different location for return. 

There is a one-way rental workaround where you can request to change your pickup or drop-off location once the trip is booked, but you’d have to work that out with the host — and it’s not guaranteed they’ll accept.

Turo can provide myriad benefits. Especially in big cities, you might find a car in far more convenient locations. Turo Go enables pickup and drop-off at any hour, so you’re not constrained by rental car companies’ operating hours. 

Because much of the rental price goes directly back to the car’s owner, more money stays in local communities. Turo often offers a range of cars, from a tiny Smart Car to electric vehicle rentals to flashy muscle cars.

But renting on Turo also entails high variability. The experience is rarely consistent, nor are the cars (or their owners). A vehicle might have squeaky brakes, and some owners might have higher cleaning standards than others.

If Turo doesn't have sufficient options, but you're generally enticed by such rental car alternatives , you might also consider Turo's competitors, such as Getaround .

Sometimes Turo is cheaper, but once the fees add up (and you realize your credit card car rental insurance likely won’t kick in), it’s not always as budget-friendly as you might think.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

on Capital One's website

2x-10x Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel, Earn unlimited 2X miles on all other purchases.

75,000 Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.