After the success of AirBnB, it only makes sense that other marketplaces utilise the peer-to-peer rental model, and car renting is the next big thing, it seems. This new way to rent vehicles is not only great for those who need a short term car rental, but it’s also perfect for those who want to make a little extra cash.
An excellent way to make some extra income from a car that you don’t use more than an hour or two a day, or the ability to utilise a vehicle without committing to buying your own. This concept is especially useful if you are someone who travels a lot and wants to rent a car, but without paying the enormous fees that often come from bigger companies. In fact, in most cases, the cost to rent a car through a peer-to-peer rental scheme tends to be around 50% cheaper than most rental companies.
Joining Denmark, France, The Netherlands and the UK, the newest of these firms is Nabobil (aptly meaning ‘Neighbours car’) in Norway. Although Nabobil has only been operating for a mere four months, the Norwegians have taken to the idea, boasting custom from a large variety of people. In a testament to the promise of this growing marketplace, Nabobil is boasting a $600,000 seed, obtained by an anonymous group of investors.
Renting a Car
The option to choose the type of car you require – whether that’s a people carrier for a family adventure or a small car for whizzing around town – and the ability to rent by the hour, or day, means that Nabobil is a much more customer-friendly way of renting a vehicle.
Nabobil has revealed that their current customers cover an entire age range, which suggests that although this is a new concept, the older, more technically-literate among us are willing to try something different. This is only based on the first quarter of business and they are confident that this is likely to increase.
As a car renter, you are protected by Nabobil and receive 80% of the money on each rental. A 20% fee is kept by Nabobil to pay for administration and insurance. Although of course, if you were to rent your car privately, you could retain the entire rental fee, you would not benefit from the protection and support offered by the company to its users.
On Demand Culture
In a society where everything is “on demand” from television and films to food and deliveries, this market is clearly going to do well. With the current financial economy, it is more beneficial, in a lot of cases, to rent an item as and when needed, than to own it and this pick-up-and-drop access allows that freedom.
For those who have “splashed out” on a purchase, such as a car, or in AirBnB’s case, a property, now have the ability to earn some passive income with little time and effort.
It seems that the more peer-to-peer rental companies that are founded, the more concerned “traditional” rental firms should be. Undercutting them on price and giving real people the chance to earn some extra cash is proving to be incredibly attractive and it is only a matter of time until more businesses offer this.