Turo is an online car-sharing platform that allows car owners to rent out their vehicles to travelers. The platform has become increasingly popular in recent years, attracting both car owners and renters from around the world. In this blog post, we will explore how Turo makes money and the business model behind its success.
Turo Business Model
Turo operates on a peer-to-peer (P2P) business model, meaning the company is an intermediary between car owners and renters. Turo charges a commission on each transaction that takes place on the platform, and this is how the company makes money.
Here are the different ways in which Turo makes money:
- Transaction Fees
Turo charges a transaction fee on every rental on the platform. The fee is a percentage of the rental price, and it varies depending on the rental period and the car’s value. The fee ranges from 10% to 35% of the rental price, and it is deducted from the payment made by the renter.
Turo offers insurance coverage for both car owners and renters, which is another way the company makes money. Turo offers three different levels of insurance coverage, and renters can choose the level of coverage that they require. The cost of the insurance coverage is added to the rental price, and Turo takes a commission on this as well.
- Turo Go
Turo Go is a feature that allows renters to unlock and start the rental car using their smartphone. This feature is available on select vehicles, and it is an additional source of revenue for Turo. Turo charges a fee for this feature, and car owners receive a percentage of the fee.
- Turo Extras
Turo Extras is a feature that allows car owners to offer additional services to renters, such as airport delivery and pickup, child car seats, and GPS devices. Car owners can set their prices for these extras, and Turo takes a commission on the sales.
- Turo Valet
Turo Valet is a feature that allows car owners to have their vehicles picked up and dropped off by Turo representatives. This service is available in select cities, and it is an additional source of revenue for Turo. Car owners pay a fee for this service, and Turo takes a commission on the fee.
- Turo Ambassador Program
Turo’s ambassador program rewards users for referring new customers to the platform. Ambassadors receive a commission on each new user that signs up and rents a vehicle on the platform. This program helps Turo to acquire new users and generate more revenue.
In conclusion, Turo operates on a P2P business model and generates revenue through various sources. The company charges a commission on each transaction on the platform. It also makes money through insurance, Turo Go, Turo Extras, Turo Valet, and its ambassador program. Turo’s success can be attributed to its unique business model, which offers a more convenient and affordable way for travelers to rent cars, and its ability to provide a seamless user experience for both car owners and renters.
Hi there! I’m Pavithra Vinoth, the proud owner of nytollsinfo.com. I’m just your everyday car enthusiast with a passion for sharing knowledge about tolls, solving car problems, exploring auto accessories, demystifying the world of car insurance and many more!