Turo Launches Long-Term Car Rental
The peer-to-peer car rental platform Turo is officially getting into long-term rentals. Founded in 2009 under the name Relay Rides and renamed Turo in 2015, the American company has capitalized on the popularity of the gig economy and car sharing to offer an alternative to traditional rental companies. Until now, it has been used mainly for short-term rentals between individuals via a mobile app.
The company is now offering the possibility to rent cars from private owners for periods of one month or more. Renters will be able to browse an inventory of vehicles offered by owners willing to rent them on a monthly basis, with the option of “paying for their reservations in monthly installments, seeing the all-inclusive price up front,” according to the company's press release.
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Turo claims to meet the needs of new consumers who prefer to have access to a car on a long-term basis rather than owning one, due to rising purchase prices, increased insurance premiums, and repair costs.
The company has conducted its own study which states that 44% of vehicle owners in Canada would be more interested in having access to a vehicle over an extended period of time than having to bear the financial burden that comes with ownership.
Access to vehicles, without too much commitment
“Canadians are rethinking what it means to ‘own’ a car,” said Bassem El-Rahimy, Head of Turo Canada. “In today’s economy, flexibility matters from those navigating job changes, to remote workers relocating temporarily, to couples or retirees whose lifestyles are evolving. People want access to a car when they need it, without the financial strain or long-term commitment that comes with ownership.”
Evidently, owners who list vehicles on the platform will have to plan for maintenance and even roadside assistance in order to keep the rented vehicle in good condition for the duration of the term. As for renters, they will need to take out insurance (provided by Turo or otherwise) in order to have adequate coverage for the vehicle.
The platform offers an interesting advantage for those who want to change vehicles every month or every year, for example. But it will also be necessary to pay attention to the total monthly payments, which can quickly add up depending on the vehicle.
We briefly browsed the Turo platform and found several hundred renters appear to have made their vehicles available to long-term renters in the Toronto area.