People have become more mobile and prefer driving on their own whether they go on a vacation or a business trip. This has created a need for car rental solutions that ensures prompt and convenient service for potential rentees. However, modern consumers are looking for on-demand solutions that enable them to rent a car when the need arises. That is why you should think of starting a car rental marketplace.
In fact, the rental marketplace has evolved and become highly sought-after, especially after the success of Airbnb. If people can rent apartments and villas, what is stopping them from renting cars on vacations and business trips? Well, the answer is nothing and that is why car rental marketplaces are growing by leaps and bounds. These marketplaces offer convenience to potential customers and service providers and bridge a gap that is prevalent in the market today.
However, as an entrepreneur, who is interested in creating a car rental marketplace, you should know what end-users are looking for. That will enable you to choose the right cars rental software and launch a minimal viable product that you can tweak as you build and grow your business.
What Type of Car Rental Marketplace Can You Build?
It is prudent to remember that with a car rental marketplace, you can quickly connect customers with service providers and ensure that the entire booking and transaction process is seamless. However, before you jump headlong and build your marketplace, you should know the type of marketplace you can create. Primarily, there are two types of marketplaces that you can create. They are as follows:
In this type of marketplace, you have two options. The first is you can have a fleet of your own cars and rent it out to potential customers. Alternatively, you can have a platform where car owners can register and connect with prospective customers.
In this type of marketplace, a car owner can rent out their vehicle for a limited period and earn money for it. The car owner is not a professional service provider so will depend on your platform to handle the business side of it.
Once you choose between the two types of marketplaces, it will be easier for you to select the vehicle rental software to create and build your marketplace. While there are numerous such software, it is best to choose IdyaFlow, which enhances customer engagement, allows customers to make paperless bookings, and provides data-driven sights to grow and improve your business.
Revenue-generation Model for a Car Rental Marketplace
When you build an online marketplace, it is essential to choose the right business model. If your business model is wrong, it will have a devastating effect on your business. On the other hand, the right business model will not only generate revenue but also help your business grow.
Some of the most common business models for car rental marketplaces are as follows:
This is the most commonly used revenue-generation model in car rental marketplaces. When a customer pays the service provider, a certain percentage is deducted from the amount as commission. So, each time a customer books a vehicle and pays for it, your platform will earn a nominal commission. Obviously, the more bookings your platform has, the higher will be the commissions.
Here, car owners pay the platform to be featured as the preferred service provider. Usually, a featured listing is displayed on the homepage as that is the first page a potential customer will visit. Since the feature listing increases the possibility of getting more bookings, it is a highly sought-after service by car owners.
If you are not keen on charging a commission for every booking, you can choose a subscription-based business model. This business model is tried and tested and tends to retain service providers as it does not eat into their income. Car owners pay a fixed amount monthly, quarterly, or annually to use your marketplace. They do not pay any commission so they generate higher revenues.
Many marketplaces use a mix of business models as just one model may not be sufficient. Hence, before you start your marketplace, it is advisable to do some research and choose a combination of business models that is right for your geographical area.
Features that Your Car Rental Marketplace Should Have
Once you decide on the business model, it is time to look at the features that your marketplace should have. That will make it easy for you to choose cars rental marketplace software.
Let Customers Choose Their Cars
Make sure that your target audience has access to a wide range of car makes and models. You may want to have a fleet of luxury, family, and budget cars on your marketplace so that potential customers can browse through the fleet and select one car that is right for them.
Remember, people like to choose their own cars and not have one thrust upon them. So, make sure that the cars rental software that you select also allows you to properly manage the fleet of vehicles and provides a pricing chart and photo gallery. When customers have a good user experience, they are bound to keep returning and using the platform.
You cannot expect potential customers to go and pick up the car that they have booked. So, your marketplace should allow them to choose a delivery option that suits their needs. Ensure that your platform offers different locations from where customers can pick up and drop their chosen vehicle. It allows customers to personalize their experience and this helps in customer retention.
Some of the most common locations that car rental platforms offer are five-star and four-star hotels, airports, and downtown. You can consult potential service providers to find out which are the most sought-after locations for pickups and drops and use them, to begin with.
Not only should the marketplace allow customers to see the features in a car but they should also be able to request a car with specific features. Alternatively, the platform can suggest features based on the purpose of the booking. For instance, if a customer is looking for a car rental for a road trip, you can suggest features that ensure optimal comfort and safety and then list the cars that meet these requirements.
Letting customers choose the features can give you useful data. You will know which features are the most popular and that will help you to ensure that the majority of vehicles that are available on your marketplace have these features.
Cars rental marketplace is booming and now is the perfect time to jump into the fray. If you choose the right cars rental marketplace software and the business model, you will be able to make your marketplace a roaring success.