White-Label Car Rental Software to Create Online Marketplace in 2024

White-Label Car Rental Software to Create Online Marketplace in 2024

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Last Updated: 23rd November, 2023

The global car rental market is projected to reach an approximate $125.6 billion by 2027. By that time, the total number of rental car users will increase by an estimated 70 million users and cross the mark of 600 million. While these are global figures, the scope of business in launching a car rental marketplace in individual regions is also tremendous. Furthermore, the presence of readymade car rental software reduces the barriers to entry.

Car Rental Market Size, by Application, 2017 - 2027

A car rental software is the best tool for businesses to deal with the challenges faced in car rental operations, including, managing reservations, inventory and payments. Thus, car rental software have all the essential features that you need in your car rental marketplace. In comparison to the traditional custom development approach, using readymade car rental software immensely reduces the Time-to-Market (TTM) and is extremely cost-effective.

In this article, we have shared more information about the working of car rental booking software along with the must-have modules/features required to build a car rental website/marketplace.

Table of contents

How Does Car Rental Software Work?

To conduct smooth rental operations, car rental software are usually divided into multiple interfaces. Each interface is developed for a different user type and comes with a different set of features. These user types in a car rental marketplace are:

  1. Admin: The admin, which is usually the marketplace owner or a representative of the marketplace owner
  2. Car Owner/Provider: Car owners and agencies who upload their rental cars
  3. Customers: Those who rent a car for personal or professional usage.

All these user-types of car rental marketplace interact with each other in the following manner:

  • Car owners register on the marketplace and upload detailed listings of their car(s)
  • The admin reviews the listings and approves/rejects them as they deem fit
    – Approved listings are displayed on the marketplace and are visible to all visitors
    – Car owners can moderate rejected listings and send them for reconsideration
  • Customers browse rental car listings and enter rental date inputs to view vehicle availability
  • To place a booking, customers pay the rental fee including a rental security amount
  • The customer visits the car owner for self-pick-up, or else the car owner can also deliver the rental car depending on the selected order fulfillment method
  • On return, the car owner inspects the vehicle for any damages and informs the admin
    – In case of any damages, the admin reimburses the car owner from the customer’s rental security amount
    – If the car is in good shape, the admin returns the entire security deposit to the customer
  • Once the car owner reaches the predefined minimum withdrawal amount set by the admin, they can withdraw their earnings to their bank account

The following video by Car and Away demonstrates the functionality of a Peer to Peer car rental marketplace.

Revenue Channels Supported by Car Rental Software

Being an online business, launching a car rental marketplace gives you the flexibility to generate revenue via multiple revenue-generation channels. In general, you can start generating revenue from your car rental business by implementing the following revenue streams:

  • Rental Commission: The marketplace owner can charge some percentage of the rental fee as a commission on each rental transaction. 
  • Subscription Packages: The owner can create multi-tier subscription packages for both customers and car owners and charge them for the benefits on a monthly recurring basis
  • Paid Listings: The marketplace owner can also charge car owners for listing their cars on the marketplace
  • Featured Listings: Revenue generation by selling most highlighted spaces of the marketplace for car listing
  • Third-Party Ads: By displaying third-party ads and promotions on the car rental marketplace
  • Add-on Services: By selling complementary products and services like child seats, car covers, driver service, etc.
  • Delivery Charges: Your company can levy extra delivery charges for picking up the vehicle from the car owner and delivering it to the customer

Successful Online Car Rental Marketplaces

Many peer-to-peer car rental companies have come up in the last decade. Below are the ones that earned the maximum reputation amongst consumers.

  • Turo
  • Avis Car Rental 
  • Enterprise Rent-A-Car
  • Get Around 
  • Alamo Rent-a-Car
  • Car2Go

The aforementioned companies are the top contributors to the market share in the car rental industry.

Turn your Car Rental Business Idea into Reality

Most Helpful Features of Car Rental Software

Although there are numerous car rental software available in the market, no two of them are exactly the same. In fact, the majority of them vary in hosting type, pricing structure, and most importantly, the feature set. While it is true that the requirement for certain features varies from business to business, however, for maximum efficiency and comprehensive management, try to ensure that your selected car rental business software has the following features.

For your assistance, we have divided the features into three categories:

Features for Customers

1. Advanced Booking Calendar

Date and time selection elements on page builders are impressive but not compatible with rental marketplace operations. A rental booking calendar requires some default and dynamic settings such as minimum rental duration, reserved delivery duration, and buffer period for vehicle maintenance with the option to select two dates (rental period start and end date). 

2. Search Filters

Search filters are webpage elements that bring ease in finding rental cars. Some of the filters that are appropriate for a car rental marketplace are distance, availability, pricing, car type, fuel type, engine, servicing, year of make, and extra features like GPS tracking and 4X4 wheel drive mode. From a marketplace owner’s perspective, appropriate search filters will assist him/her in reducing the bounce rate of the marketplace.

3. Map View Filter

The map view filter enhances the user-friendliness of your car rental marketplace even further. Along with using regular search filters, users can switch to map view to see which cars are available within close proximity to their vicinity. This feature is highly helpful during the times when customers require an urgent car rental and can directly visit the car owner to pick up the vehicle.

4. Car Comparison

The car comparison option is an advanced feature that not many car rental websites and marketplaces provide. It assists the users in finding the best option for their requirements by providing an automated comparison of multiple selected vehicles. Additionally, the feature enhances the overall customer experience of your marketplace and helps car owners with genuine rental pricing and specifications generate revenue.

5. Rental Duration Extension

In case a customer needs the rented vehicle for more than the stated period, then he should get the option to extend the rental period. By extending the rental period before its end, the customer can avoid facing any late return penalty. Moreover, by providing the rental duration extension option, the marketplace owner can also increase per-order revenue. 

5. Chat Support

Chat support is imperative in today’s time especially when consumers are aware of chatbots. Not only do customers expect marketplaces to provide them with immediate support, but they also want the marketplace to resolve their problems in real-time. In such a scenario, it is essential that you create an all-inclusive help center with detailed FAQs and chat support. If you can afford to have customer support executives provide real-time chat, then that’s even better.

Features for Car Owners

1. Order Management

For quick processing of orders and timely pickup/delivery, car owners should get a dedicated tab to keep track of all their bookings and orders. They should also be able to view all bookings, including order ID and date, and maintain an order status log that will be visible to the marketplace owner. Additionally, car owners should get the option to add comments at every stage of the order so that the marketplace owner can provide better support to customers.

2. Fleet Management

On a car rental marketplace, it is the vendors who rent out their cars, the marketplace owner majorly earns through commission. Thus, it is car owners who require fleet management features that allow them to add fleet size, available rental dates, minimum rental duration, maintenance buffer period, car details, rental charges and even change publishing status.

3. Rental Agreement and eSign

Car owners should have the option to add their own rental agreement that will be eSigned by the customer at the time of checkout. In the agreement, car owners can add their rental terms and conditions, such as car usage policy, cleaning policy, late return policy, late cancellation policy, etc. In case of violation of the terms, the agreement will help the car owners in getting appropriate reimbursement.

4. Request for Quote (RFQ)

To place large and complex orders, customers may want more details and custom price quotes. With an RFQ management module, they can send their requirements and quotation requests to the car owners. After evaluating order requests and checking the feasibility of the order, car owners can directly send price quotations and required details on the marketplace platform. This way, you can keep all negotiations on your marketplace.

5. Storefront Management

Car owners should get complete features to manage their independent storefronts. This includes managing storefront banners, logos, listed cars, languages, contact info and social media handles. Additionally, you can also provide owners with the option to set a general agreement that will be applicable to all cars listed on their store.

6. Miscellaneous

Various miscellaneous features for the car owners include:

  • Order history
  • Enable/disable listings
  • Manage product delivery charges
  • Custom notifications option
  • View order status
  • Manage payment payout details
  • Option to manage discounts
  • Message customer
  • Message admin
  • Withdraw earnings

Features for the Marketplace Owner (The admin)

The marketplace owner requires several features to properly manage car rental marketplace operations. In this article, we have grouped them together under the following sub-categories:

1. Management Features

Your car rental software should have the following administrative features for complete management of the marketplace.

  • Accept/reject listings
  • Add, remove, and moderate uploaded listings
  • Create and manage categories for listings
  • Access order history
  • View users
  • View car catalog
  • Create and edit search filters
  • Set commission rate
  • Set minimum withdrawal threshold
  • Set withdrawal interval period
  • View and download reports
  • Import and export listings and website data in XLS format
  • Remove or disable user accounts
  • Search filters to browse user accounts and product listings
  • Create and manage sub-admin accounts
  • Currency and location settings
  • Enable and disable payment gateways

2. Content Management Features

  • Add, remove and edit blogs and web pages
  • Add and remove website graphics
  • Create and edit product labels
  • Manage homepage slider
  • Create and manage homepage collections
  • Set marketplace theme
  • Add and manage social media links
  • Publish/unpublish web pages and blogs
  • Add or delete images on the website
  • Add and manage testimonials
  • Give read, write and edit privileges to sub-admin accounts
  • Create email templates

3. Marketing Features

  • Edit URL of the web, product pages and blogs
  • Create and edit meta titles and descriptions
  • Add and remove affiliate accounts
  • Manage home sliders and banner images
  • Create and edit discounts
  • Enable/disable discounts
  • Set social media handles

4. General Website Settings

  • Edit site logo
  • Edit website name
  • Edit email and physical address
  • Set up navigational links
  • Enable/disable chat
  • Configure email and SSL server settings
  • Import/export website data
  • Set up Languages

Types of Car Rental Software

There are multiple types of car rental software available today with each type having its own benefits. For general understanding, we can categorize car rental software into licensing types, which are lifetime license and Software-as-a-Service (SaaS).

1. Self-Hosted Car Rental Software

Also known as Lifetime Licensed software, self-hosted software provide complete ownership to the entrepreneur. They are hosted on the marketplace owner’s own choice and are highly flexible. Meaning, you can either select a faster or more secure server for marketplace operations and even host the software on your very own in-house servers if they meet the minimum hardware requirements. As you get complete control over the marketplace, there can be no restrictions on the number of features, listings and transactions.

Benefits of Using Lifetime Licensed Software

  • One time payment
  • Highly cost-effective
  • Complete ownership
  • Can be hosted on any server of your choice
  • Fully scalable with unlimited listings and transactions
  • Access to all features right from the beginning

Cons

  • Fewer options available in the market
  • You might need to invest in a hosting service separately

2. SaaS-Based Solution

Instead of providing business owners with the choice of server, SaaS car rental software are hosted on the software provider’s very own servers and delivered as a monthly recurring service. As the software provider retains complete control over the server, we often see restrictions on the number of users, listings and transactions in SaaS software. However, as the initial setup costs of SaaS software are low, they are preferred by numerous entrepreneurs. It should also be noted that SaaS software are usually more suitable for small businesses that just want to test their ideas.

Benefits of Using SaaS Software

  • Easy to set up
  • Hosting service is already included in the software costs
  • There are too many SaaS options available in the market

Cons

  • Very cost-inclusive in the long run. The costs can add up to 5-10 times of lifetime-licensed software
  • They have a limited number of listings and transactions
  • Not scalable. You need to upgrade your subscription package in order to accommodate business growth
  • Only very basic features are available in the base subscription. To gain any competitive advantage, you will again need to upgrade your SaaS package.

The Best Car Rental Software Available in the Market

The car rental industry is saturated with too many rental software. While some provide support for large-scale operations, some are only useful for medium to small businesses. To find out which car rental booking software truly matches your requirements, you may need to do some initial research. In our observation, we found Yo!Rent car rental software to be the best match for the majority of entrepreneurs.

Yo!Rent is a self-hosted solution with the most impressive range of features available in the market. As it is fully customizable and scalable, it can match the business requirements of all small to large size car rental companies. In terms of cost-effectiveness, Yo!Rent again takes the lead as it offers 4 different packages to meet the requirements of all sizes of rental businesses. Lastly, Yo!Rent provides access to all its features in all its packages right from the beginning. Thus, you can rest assured that you are getting highly advanced features even in Yo!Rent’s base package.

Reasons to select Yo!Rent car rental software:

  • Self-hosted solution with a one-time cost
  • 5-10x more cost-effective than SaaS solutions in the long term
  • Comes with all the advanced features mentioned above
  • Fully customizable and scalable
  • Pre-integrated with 25 payment gateways
  • Multilingual and Multi-currency
  • 1 year of free technical support

Set up your Car Rental Marketplace with Yo!Rent

Car Rental Operation Challenges You Can Solve with YoRent

In the rental industry, there exist some challenges that hinder the performance and growth of your car rental business. However, with the help of Yo!Rent rental software, you can easily overcome and resolve these challenges.

1. Complex Invoicing

Car rental businesses deal with the problem of complex invoicing and quotations. The invoicing of a rental car is inclusive of various factors such as the number of rental days, buffer period, security deposits (if any), taxes, delivery costs, etc. Yo!Rent simplifies pricing with a dedicated rental invoicing system. The system takes rental date inputs from a booking calendar and automatically registers all the taxes and rental security. Additionally, you also get an RFQ management module to send and negotiate custom price quotes.

2. Documentation and Paperwork

All the paperwork, such as signing rental agreements, verifying customer documents, and storing booking information is very troublesome in manual operations. Yo!Rent Car rental management system help businesses overcome the documentation work with features like online document verification, rental contracts and eSign. You can also store all booking information on your online servers and access it remotely.

3. Damage Control

Unexpected damage in rental cars is very common. When any such damage occurs, the business owner often has to pay for the damage from their own profits. Not to mention, regular wear and tear reduces the longevity of the vehicle, Yo!Rent assists in promoting the fair use of vehicles by collecting a rental security amount and verifying driving license. The security amount can be later used to reimburse any damages or compensate for late returns or cancellations.

4. Providing Customer Service

Consumers today perceive customer support as an absolute imperative. With the help of Yo!Rent car rental software, businesses can provide adequate support by setting up a chat messenger. They can also use the sub-admin accounts to provide back-end support to customers and car owners in emergencies.

Other Benefits of Using Yo!Rent

Along with the aforementioned benefits, Yo!Rent helps you in many other ways as well. Some of them are:

1. Automate Key Processes

By building a car rental marketplace, business owners can automate 90% of daily repetitive processes and reduce overall operational costs. Some key processes that car rental software automates are bookings and reservations, rental invoicing, payment collection, inventory management, notifications and alerts, commission deduction, and rental security management.

2. Provides Access to Wider Markets

Car rental software not only streamline business operations for rental businesses but also provides them with access to wider markets. By using the built-in features of car rental software, such as the various marketing tools, multi-currency support, multilingual support and regional payment gateways, car rental companies can easily target wider markets and expand their business operations into new regions.

3. Helps in Brand Building

Car rental software assists in brand building by providing business owners with a robust marketplace with industry-specific designs and functionality to manage business operations more professionally. They can get real-time updates and collect data for swift decision-making. Moreover, business owners can provide car owners with dedicated storefronts and dashboards to manage orders, earnings, rental fleets, and even personalize their branding. Lastly, with a live chat option, business owners can provide quick customer service and win customer trust. The systematic way of doing things along with a user-friendly interface and complete back-end support builds a strong brand for your business.

Conclusion

Being an asset-light business, car rental marketplaces do not require heavy investment. The business owner only needs to provide a user-friendly and feature-rich marketplace where car owners enlist their fleet and customers rent out cars on a duration basis as per their requirements.

The features we mentioned in this blog are essential for running a car rental website. Including them in your website will streamline day-to-day operations for your business. To cope with the aforementioned challenges, we recommend building your marketplace with Yo!Rent car rental booking software.

With extensive rent-centric features, such as eSign and agreement management, car inspection and return, cancellation period & late return charges, add-on services, rental security management and multi-lingual & multi-currency, Yo!Rent is an ideal solution for car rental businesses. With precise algorithms, Yo!Rent is developed to handle complex rental price calculations, and online reservations and manage fulfillment and return, making it suitable for car rental businesses. Lastly, you can also integrate various third-party APIs in Yo!Rent to get additional functionalities.

Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date. We advise - the readers should not take decisions completely based on the information and views shared by FATbit on its blog, readers should do their own research to further assure themselves before taking any commercial decision. The 3rd party trademarks, logos and screenshots of the websites and mobile applications are property of their respective owners, we are not directly associated with most of them.


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Comments (11)
Amit Thumar

Very thorough detail of all the things needed to launch a successful P2P car rental business. Most of my queries regarding the business and revenue model have been answered in this blog.
Thanks

Tom James

I really like the infographic of P2P car rental business model. The blog is well researched and very nicely written.
Kudos!

FATbit Chef

Hello Tarun,

Thank you for your appreciation. Stay tuned for more insights.

Regards,
Team FATbit

Val & Kar

Post is nicely written and it contains many good things for me. I am glad to find your impressive way of writing the post.

FATbit Chef

Hello Val & Kar,

Thank you so much for your appreciation. Keep visiting us for more insights.

Regards,
Team FATbit

Export Japan Car

I am really extremely glad to visit your blog. Presently I am discovered which I really need. I check your blog regular and attempt to take in something from your blog. Much obliged to you and sitting tight for your new post.

Car Rental Service in New York

Get Around is really popular and the demand for car renting platforms is justified. But, such a P2P car rental business can only be popular if it succeeds in creating brand awareness and trust. Otherwise, people would be doubtful about the security of their cars if rented through an unreliable platform.

Car Rental Software