Auto Rental News
MenuMENU
SearchSEARCH

Car Rental Q&A: What Factors Will Help Me Decide if a CarSharing Service can be Successful?

A car rental operator is interested in starting a carsharing service to complement his traditional rental fleet. He is asking for tips to help him decide whether the carsharing service will be successful.

by Rent Centric
March 13, 2015
3 min to read


Q: I'm looking into starting a carsharing service to complement my traditional rental fleet. What factors will help us decide if we'll be successful?

— Bechir Blagui, Hollywood Rent a Car, Hollywood, Calif.

Ad Loading...

A: Are you looking to start a completely separate carsharing company, with separate branding and marketing, which will look to attract a customer base that is foreign to your existing car rental business?

You could go this route, but it entails costly technology and employing distinctly different practices than traditional car rental. Instead, you might consider “on-demand” or “self-service” car rental as an alternative, yet for a similar purpose.

In this model, the operator would simply be adding enhancements on an existing rental management infrastructure versus implementing a parallel, completely new business model. The result is not a dramatic business leap for the operator, but instead a facilitator of strategic cost improvements for better customer reach, service efficiency and higher profitability.

Keep these words in mind: client self-service. Carshare technology, in the form of self-service car rental, takes the dynamic online reservations tools found in a good car rental program to the next level. The purpose of this new generation of carshare technology is to provide rental customers with tools that not only allow them to reserve and pay for a vehicle without administrator assistance, but also afford them vehicle access in complete self-service fashion.

The on-demand, self-service vehicle rental management approach automates the customer verification process, allowing them to unlock, drive, lock and return vehicles — all from a mobile app. Yet unlike the traditional carshare concept, this process does not require membership pre-subscriptions, RFID readers and RFID cards.

Ad Loading...

So we shouldn’t be looking at this issue for its possibilities of separate business “success,” but from the perspective of a greater revenue opportunity with reduced administrative expenditures, weighed against the reduced cost of the technology deployment compared to traditional carsharing.

An on-demand, self-service vehicle rental deployment would typically run less than $300 for the hardware kit in each vehicle, plus a monthly amount of about $20 for the network service and Web portal (in countries with mature cellphone infrastructures).

For instance, decentralizing and automating the rental process leads to new ways to think about rate management and new ways to leverage your car rental system software. In addition to seasonal rates, think about seasonal regions, or moving units to areas based on seasonal demand.

With seasonal regions, operators will know when and where to place their vehicles to capture potential clientele — an annual event location, an airport, a hotel parking lot or body shops, to name a few — even if those locations are significantly remote, such as out-of-state or even out of the country.

Operators would hone this seasonal movement based on the system’s activity data. The automated analysis capability here can get quite sophisticated. Needless to say, the alternate to capturing this potential would be large brick-and-mortar expenditures with dedicated staffing.

Ad Loading...

With new self-service programs, an automated utilization rating can be implemented to take advantage of real-time demand pressures. Automated regional ratings can also be applied to encourage on-demand self-service renters to return vehicles to high activity locations.

Other aspects include increased revenue potential by servicing smaller incremental rental durations, such as by the minute or by the hour.

There is another value proposition in the business-to-business and business-to-consumer spaces, such as allowing access to students operating as Uber drivers or moving or delivery companies that need vehicles for their own services.

In conclusion, if you already have a successful car rental operation, implementing on-demand, self-service technology for use with some of your vehicles is a very low risk, potentially high reward management automation add-on.

What's Your Question?

Email your car rental operation-related questions to Auto Rental News care of chris.brown@bobit.com.

Michael Youssef is president of Rent Centric, a provider of car rental and carsharing software technology. Youssef can be reached at michael.youssef@rentcentric.com.

Subscribe to Our Newsletter

More Rental Operations

display of Turo's FSD homepage
Rental Operations•by Chris Brown•October 28, 2026

Turo and Tesla Take the Next Step Toward Autonomous Car Rentals

The partnership brings Tesla's Full Self-Driving (Supervised) technology into the rental experience, offering a glimpse of how increasingly automated vehicles could change car rental.

Read More →
Two identical rental cars, two different prices
Rental Operations•Cover Story•October 26, 2026

How Rental Operators Can Navigate Personalized Pricing Rules

As regulators scrutinize the use of customer data in pricing, rental operators need to know whether they can explain why one renter pays more than another.

Read More →
a laptop shows different connectivity paths for car rental supply
Rental Operations•October 23, 2026

Direct, Broker or Hybrid? How Travel Retailers Source Rental Cars

As travel retailers weigh direct supplier relationships against third-party distribution, rental operators need to understand how those decisions affect their business.

Read More →
Ad Loading...
thumbnail of title and photo of Joel Price and Chris Brown
Rental Operations•by Chris Brown•October 20, 2026

How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?

With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.

Read More →
thumbnail what does it take to succeed in b2b rentals
Rental Operations•by Chris Brown•October 12, 2026

What Does It Take to Succeed in B2B Rentals?

The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.

Read More →
Photo of Ana Laborde and world map
Rental Operations•by Chris Brown•October 12, 2026

NPR Builds on International Partnerships to Grow Rental Bookings

With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.

Read More →
Ad Loading...
Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
globe of world and drivers license from UK
Rental Operations•September 28, 2026

The Booking Is Confirmed, But Is Your Customer Ready to Drive?

For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.

Read More →
Ad Loading...
Scenes from Car Rental Shows past
Rental Operations•by Staff•September 23, 2026

ICRS 2027 Opens Call for Papers

The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.

Read More →
Ad Loading...