P2P Carsharing - Business Models

Description

Randall Stross:

"The companies use different formulas, but participating owners receive, generally speaking, about two-thirds of the rental proceeds. RelayRides says an owner of a midsize, late-model sedan who rents out a car for 10 hours a week could expect to clear about $3,000 a year.

The hourly fee to rent a car, including insurance, averages $6 to $8. Older cars can run as little as $3 an hour. Fancier models can run much higher — Getaround says it has Tesla Roadsters that go for $50 to $75 an hour.

All of these companies offer their own insurance coverage for their renters, which is supposed to put owners’ minds at ease. But only two states — California and Oregon — have passed laws to clarify that an owner will not suffer any repercussions should a car-sharing renter have an accident, says Robert C. Passmore, senior director of personal lines policy at the Property Casualty Insurers Association of America.

“In all the other states, legal ambiguity remains,” he says. “If a renter should be involved in a serious accident in those states, the victim can be expected to go after every party possible, including the car’s owner.” (http://www.nytimes.com/2012/02/19/technology/car-sharing-companies-link-owners-with-renters.html)