With the advent of the taxi booking apps, the way we commute has changed drastically. Technology advancement plays a significant role in making our lives so much easier and comfortable. The car booking system had gone one step further when they started to provide car rental services. A car rental industry is seeing whooping profits. The car rental market is estimated to globally reach a Compound Annual Growth Rate(CAGR) of 17.52 % between the period of 2018-2023. Many users find car renting services much more convenient, cheaper, and private than availing a private taxi cab every day. It is wise to invest in a car rental software development and integrate a car rental app into your business. It will help you in carrying out the rental services with high efficiency and ease.
Benefits of car rental application
1. Much cheaper than buying a car. Users can also enjoy all the benefits of owning a car in terms of privacy and convenience.
2. Avoids the hassle of booking a taxi cab every day. Customers can rent a car for a few days and renew it whenever they want.
3. It’s economically beneficial as the user does not have to worry about the maintenance of the car regularly, which is the case in owning a car.
4. Customers get a variety of options and different brands of vehicles to choose from. Thus, they enjoy the ability to travel to different vehicles they like.
5. It is also hassle-free and safe in comparison with traveling in public transport
6. The customers can pay by the hour of renting
7. They are reimbursed the extra fuel amount
8. The car can be availed at their doorstep and dropped off wherever and whenever they want.
9. They can avoid the waiting times and wait for charges
10. The services are available 24/7, and the users can avail and rent a car whenever they want
Things to keep in mind while developing a car rental app
- Linkup with efficient car renters
The basic necessity of the app is a well maintained and right running car.
Global Cars, Avis, Sixt, Hertz are few successful car rental app companies. In developing a car rental app, look for tie-ups with existing car renters with high-quality cars. Using the company’s cars as well, see-through that the vehicles are regularly checked for maintenance and are in good condition.
2. Electric car is a widely good option
Electric vehicles save up a lot of money spent on fuel and maintenance. Electric cars cost almost as half as running a fuel-based vehicle. The cost involved in managing an electric vehicle is $485, whereas a fuel-based vehicle would cost more than double the cost of operating the electric vehicles.
3. Revenue model should be intact
A good revenue model is essential for any business. Especially in a car rental app business, if you don’t integrate an entire revenue model, you will continuously be investing with no return of profits. The commission received on every renting is the primary source of revenue. The commission can range from 15-25%, depending on your business model.
Other revenue generation methods are in-app advertisement, cancellation charges, the difference in cost based on the type of car, and much more.
4. Car rental App and its features should be of high graded quality
An efficient rental app is a primary and vital element in running the business. The app should have all the features necessary to carry out a smooth running of the app.
Customer app, admin app, driver app should have all the essential features to avail and deliver rental car services.
5. Customizable and rebranded white-labeled apps
Car rental booking software should be 100% customizable in terms of the UI, the logo of the app, the features, and much more. The app should be white-labeled and rebranded with notability in the market.
6.Powerful add ons
There should be room for integrating further add on features like a bitcoin wallet, live navigation, geo-fencing, AI-assisted features, multi-language support, multi-currency system, and much more. Anything which will choose the model of business can be added.
Other Promotional activities to gain reach and customer engagement:
In-app ads can help boost the revenue and also advertise and promote the business of the renter.
Offers and discounts on the rental services can be beneficial to the customers and increase company engagement.
Customized mail and notifications for registered users
The user and drivers should receive timely letters on the updates of the app. This keeps the users connected to the app.
Book ride for others
Users can also book trips for others apart from themselves. This feature gives flexibility in availing services.
Corporate commute packages
In renting the car, corporate working users can avail packages for a fixed number of days. Thus this helps in avoiding the hassle of going to the office every day.
Referral – personal invitation code
Users can refer to other users. When the referred user starts using the app, the user who sent the reference code will receive a discount coupon and offers.
As of 2019, the Car rental app revenue has amounted to US$26,783 million. The past statistics show the market value is higher than what it seems and is expected to fetch good profits for the entrepreneurs who invest in it. Run a top-notch car rental business by following the above strategies.