The car rental market is massive and is expected to continue growing over the next few years. According to an analysis, the car rental market is estimated to be worth £103 billion. In 2028, that estimate is £141 billion. Business owners will have a steady stream of customers and increased earnings.
Additionally, the car rental industry is evolving towards digitalisation, with an increasing number of customers opting to book vehicles through an app rather than by phone or in person. This is good news for tech companies looking to develop software for car rental, as there are many opportunities to capitalise on an untapped market with an extremely sought-after product. In this article, we will cover the key features and techniques for developing a car rental application.
Market Statistics of Car Rental Apps
The market for apps related to car rentals has experienced a significant increase in revenue worldwide for some time, with online sales revenues predicted to reach an astonishing £116 billion, accounting for 73% of the total, by 2028.
- Alongside being a significant industry and a massive service, the rental car market continues to grow in response to the demands of commuters. It’s a standard for everyone and the business will certainly continue to grow.
- This means that the app for car rentals isn’t only for big companies in this sector. Small and mid-sized companies are also experimenting with the waters and deciding to create one.
- Revenue estimates indicate an average annual growth rate (CAGR) between 2020 and 2024 of 18.5%.
- Experts predict the average revenue per user (ARPU) to be around £200.37.
- In 2024, the percentage of users is predicted to climb to 7.1%.
- The global car rental market is projected to reach £144.21 billion by 2027, representing a 6.7% annual growth rate.
- The global car rental market is estimated to be worth £132.10 billion in 2024, with an expected value of £220.10 billion by 2029, representing an increase of over 10.75% during the forecast period.
What Is Car Rental App Development?
A mobile app that allows users to book car rentals on the go, providing them with the ability to search for available cars, pickup locations and choose the type of car they want and then manage the booking. The app helps rental companies manage their fleets, process reservations and assist customers with their needs. Features like real-time vehicle accessibility, GPS tracking and nearby locations enhance customer convenience. The app assists both customers and rental companies, providing an easy and efficient rental experience.
The development of an app for car rental involves creating a mobile application that enables users to search for, book and manage car rentals directly from their smartphones.
Stakeholders can include individuals or non-organised groups.
Types of Car Rental Apps
Here are some of the most popular types of rental cars. You can modify your app to suit your needs.
Self-Drive Car Rental Services App
This is intended for customers who prefer not to deal with the hassle of chauffeuring or driving themselves.
These types of apps are gaining popularity among individuals who use autonomous vehicles to travel from one location to another and are seeking to rent vehicles at a lower price.
Local Car Rental Services App
The service’s commercial model is extensive, covering everything from airport drop-off and pickup to a convenient drive through the city. It’s a straightforward choice for clients worldwide.
Long-Term Car Rental Services App
Like the name implies, it’s designed to help those who need the vehicle for a longer time period, such as months or even a whole year. It’s an ideal choice for those who need a vehicle on short notice or prefer renting over purchasing.
Corporate Car Rental Services App
Corporate cars are specially designed for companies that require frequent car trips and professional chauffeur services. The apps are accessible only to corporate clients and trips are scheduled according to the corporate timetable.
Outstation Car Rental Services App
Tour and travel Outstation car rental applications are the most effective. They’re the ideal choice for business and family-owned companies that require travel to remote locations, as they can go anywhere.
P2P Car Rental Services App
P2P, also known as peer-to-peer car rental, is an enterprise model that doesn’t require the use of a fleet of vehicles or designated drivers. Anyone with a car could profit from this type of service. It fosters a stronger community and enables people to save money for their travels.
They are some of the most well-known business models. However, creating a new business model and earning money depends on your goal and expert mobile app developers who can assist you in turning your idea into a lucrative business model.
To maintain the current business model, you must offer your customers what they need through their mobile car rental applications.
Why Should Businesses Invest in Developing a Car Rental App?
A car rental app developed by a developer can be beneficial to both the company and its customers.
On one hand, users appreciate the ease of booking rental cars, while on the other side, businesses can invest in an app for renting cars to help boost the business’s growth.
Wider Reach
Using a car rental application can enable you to reach a significantly larger audience quickly. Advertising channels, digital marketing, social media advertising campaigns and much more enable you to connect with your ideal customer.
Analytics & Reporting
Mobile apps enable the collection of data quickly and can also serve as feeds for analysis reports.
Data can help you understand patterns in bookings and customer behavior, identify the most popular booking times and uncover user preferences. This will help you make more informed decisions for your business.
Brand Recognition
The automobile rental market can be intense. By using an app, you’ll get ahead of the pack.
All you need is a unique app, which you can design with the assistance of a highly skilled automotive app design firm.
Simple Entry to the Market
If you create a car rental application, you can join the billion-dollar rental market, as most people use mobile apps to book their vehicle rentals.
Improved Customer Engagement
Through mobile app development, car rental companies can maintain close contact with their clients to the greatest extent. This enables them to offer customised services, including reservation schedules, loyalty programs and promotions, among others.
Streamlining Operations
Managing a rental car company isn’t simple and requires a lot of work. But it’s not that difficult to run an automobile rental business with the mobile app. You’ll be able to monitor each aspect of the operation, as well as have important information readily available and manage your employees in the field.
Customer Retention
Through investing in the development of an app for car rentals, Customer retention is simple. We can maintain contact with customers throughout the day and provide support for their issues as they arise. It also allows you to offer coupons, discounts and other promotions.
Business Models for Car Rental Mobile Apps
Apps for car hire are ubiquitous nowadays. The first car rental concept was developed in the early 20th century, with only three vehicles available for rent. Today, this company has expanded globally and offers a range of services.
If you’re planning to join the on-demand car rental market, determining the most effective way to meet customer requirements is essential. Here are a few of the most popular kinds of applications:
Peer-to-Peer Car Sharing
The commercial model of the app for car rentals is comparable to the previous model, but it has the benefit that customers can hire vehicles not only from private owners, but also from businesses. This service can simplify your life when you’re planning to travel to foreign destinations. Your car unexpectedly breaks down, you want to test a brand new model or a specific make or brand, etc. It can also help reduce traffic congestion and parking issues.
If someone needs a car, it is easy to select a location and host or pick a specific car and choose which location you’d like the owner to drop it off at.
Some of the more well-known examples of the development of an app for renting cars are:
Turo is a leader in its industry. It has a stellar rating of over four stars, with five million downloads and is used by automobiles across the U.S., Canada and the United Kingdom. It offers a variety of search categories, including filters by location, brand or even by experience.
Getaround, however, provides the same service as the other, but at a higher rate and with more recognition. However, it comes with specific, strict conditions for vehicles.
Self-Driven Service
In this case, companies offer a rental car app for individuals who can drive independently with their own automobiles. This is helpful in situations where a person has their license to drive but hasn’t yet gotten a car. Or something occurred to a vehicle belonging to someone else and they require an auto that can perform the work. This may be a feasible alternative for those who need to use a vehicle for a brief period, don’t require the vehicle to be in good condition or require an international vehicle.
Car rental apps enable customers to reserve vehicles, including trucks, vans and luxury cars, directly through the app and then pick them up from the company’s car park. The user can generally pay using the app or extend rental hours or days with the mobile app. The customer can then take the vehicle to the address of their choice.
The most well-known examples of creating apps for car rental include:
Rentalcars lets users rent cars in over 160 countries. Over five million people have downloaded the app.
Europcar acts as an aggregator, allowing customers to hire a car anywhere in the world and choose the preferred pick-up location. The company has more than one million downloads.
National Service that provides coverage for more than 1,5K locations around the world
Cab Booking
This business model is one of the highly sought-after models in the world of developing apps for car rentals. It allows users to book taxis for an immediate or an advanced trip. Additionally, these apps typically contain reviews and profiles of drivers, allowing users to enjoy a satisfying and personalised experience.
Car rental apps provide their customers with interactive maps that are user-friendly and easy to navigate, showing taxis on the market that users can pick by pressing their index fingers. Let’s look at the best examples of constructing a car rental app:
Uber is a renowned company that is a leader in its specific market, spanning 85 cities. It allows users to use Uber, a ride-sharing company or luxury taxi service, offering a variety of payment options.
Lyft is a different major transport company operating throughout both the U.S. and Canada. All you need to do is select an area and the app will provide the most suitable taxi in just minutes, along with an estimated cost before booking.
We concentrated on the most well-known types. However, the range of software for car rentals includes more options, including local corporate, outstation and local rental cars. Once we’ve learned the basic business models and are enhanced by well-known examples for creating car rental software, it’s time to study the future of the car rental app UK market.
Must-Have Features for a Car Rental App
What’s the procedure to create an app for renting cars that its intended users can access? It should cover a variety of options. We’ve listed the most important elements for each participant.
Users:
Search and Filter Options
The robust search and filter features enable users to find the ideal vehicle that meets their specific needs. The car-sharing app will allow users to select the vehicle closest to their desired location, based on price and type.
Payment Gateway Integration
The best method to ensure an effective and secure payment is to simplify it by connecting it to a reputable payment provider. At a minimum, you should be able to use credit and debit cards, as well as digital wallets. It is possible to increase the options you have as you get more confident.
Reviews
Reviews and ratings from customers help to increase transparency. The more reviews that people write about the cars they’re considering, as well as cars, the more confidence they place in the person who owns them. This could also help your car owners make an informed decision about the best option for them and inspire owners of your vehicle to take on the upkeep of their vehicle.
Easy Onboarding
It’s impossible to distract users from a complicated and lengthy onboarding procedure; after all, you’ve never made the idea clear to users. Create an easy experience for your users and ensure they enjoy a seamless experience, from account creation to profile setup and feature access within the application. Additionally, confirming your identity is essential. Once you have verified your identity, it will suffice for further actions.
Booking and Scheduling
Drivers who want to drive would be delighted to have an easy reservation process that does not require extra effort. Users can select their pick-up and drop-off times and book their trip within a few clicks. They can then enjoy an effortless experience. Remember that the greater the number of steps you take, the less likely they’ll be to reserve a spot for a vehicle.
GPS Tracking and Navigation
The most reliable car rental app should be able to monitor the location of your car in near-real time. This provides users with an idea of where their car is located and can be useful as it informs users of the best place to park their vehicle when they’re done driving.
Car Owners:
Earnings Dashboard
Create an easy-to-use earnings dashboard that informs vehicle owners of their earnings. This will help them be aware of their rental history and see trends over time.
Insurance Integration
Get the best guidance from Getaround. Provide peace of mind to both drivers and owners by offering insurance that protects vehicles from potential damage and safeguards both parties.
Vehicle Listing Management
Car owners are responsible for providing accurate information and keeping their vehicles; a basic listing is an integral part of developing a car rental app.
Owners should have the ability to edit and add pictures to their vehicles, as well as include new or upgraded vehicles and choose the price they’d like. Simple onboarding and easy-to-follow instructions are beneficial for those new to the platform.
Booking Requests
This feature must include real-time alerts and, as with using a single-tap reservation feature, it should be simple for the user to accept or decline the reservation.
Admin:
Analytics
To provide the best peer-to-peer rental car service and enhance its efficiency, you must equip the app with relevant knowledge. Administrators must have access to the most effective analytics tools to gain insight into the performance of their application. Give information about the trends in renting, as well as the number of cars being used and the ever-changing needs for price fluctuations. All this information should be presented in a simple and user-friendly interface.
Customer Support Dashboard
Administrators are typically required to perform a range of tasks throughout their shifts. Thus, a dashboard that addresses the users’ complaints and questions, as well as technical issues and emerging reports, is a good solution. It’s a fantastic method of bringing all the processes together in one location.
User Management
Administrators need to be able to manage user accounts swiftly. In this case, it involves both the owners and the drivers. The most important tasks include verifying authenticity, adjusting the primary settings and ensuring that the profile aligns with the car rental guidelines established by your app.
Dispute Management
Drivers and owners are bound to encounter disputes, even under the best of situations. Therefore, it is imperative to develop a dispute resolution system that is simple and quick to address issues swiftly. The resolution process can be simplified, thereby enhancing customer satisfaction.
Advanced Features of Car Rental Apps
There’s more. Customised car rental application development enables you to create a unique software application tailored to your specific needs, featuring features such as weather and route information, as well as customised features for your car that cater to the requirements of your target customers.
Based on the research findings and the type of business you intend to target for a specific group of customers, you can enhance your mobile app by creating and incorporating features to ensure it’s beneficial to the users you want to target. For instance, the car rental outstation application might allow users to utilise OTT to keep entertained during long journeys.
Here are some essential points to incorporate in your acknowledgement.
Reviews & Ratings
This feature can help users make informed decisions, as it allows you to offer online reviews of specific models from fleets and rental companies.
Chat assistant for use within apps
You can customise the car rental app to offer 24/7 support to renters through chatbots or virtual assistants. They will be available to help customers or clients with issues such as booking changes.
Notifications & Alerts
Notifications are another characteristic of the app for car rentals. The app will notify clients about forthcoming reservations and confirmations of rental. It is also possible to schedule alerts to notify you of price changes or important app changes.
Assign Drivers
Specific to the corporate rental service, the capability to assign drivers enables businesses to allocate specific vehicles to chauffeurs within their own organisation.
Analytics and Reports
To gain insight into the habits of customers as well as trends within the rental industry. This will enable you to optimise your fares and effectively manage your fleet.
Panic Button
A further essential feature is that it offers commuters and renters an extra layer of security. This feature enables them to contact emergency assistance directly on the roadside or the police through a taxi booking application.
Multiple Payment Gateways
Secure payment is one of the most crucial elements of a car rental application. To ensure customer convenience, it is essential to offer a variety of secure payment options, including credit and debit cards.
GPS Tracking
This feature is crucial. The app’s administrator or you will be able to track the rental car’s location in real-time. GPS technology is extremely useful in enhancing security and roadside assistance.
Rental Cost Calculator
Another key characteristic of the app for car rental is the ability to provide customers with an estimated total cost, enhancing transparency for the business. The app calculates this by considering the car you select, the rental period and any additional charges.
How Car Rental Mobile Apps Earn Money?
After you’ve learned about the advantages and use-case options, you must also understand the monetisation strategies. Since the ratio of profits to investment is a valuable factor for decision-makers and monetisation strategies are integral to the development process, it’s easy to incorporate them into your app. This knowledge provides car rental companies with a solid foundation for their operations.
Advertisement
Advertisements, a method of promoting various brands within the car rental app, are another means for businesses to generate profits. Advertisements enable businesses from third-party companies to connect with potential customers through the same app. To monetise your business by offering a car rental option, hiring an app for travel and transportation businesses is a possibility.
Car Rental Marketplace
Another way to generate income from car rental services is to establish an online marketplace that is seamlessly integrated into the rental process. For instance, a person may require software for car rentals. If one were to use an alternative application, this would cause users to lose focus. However, placing the service within one application, such as a car rental service, allows clients to remain in the application and make an informed investment decision. This is the way companies typically generate new revenue streams.
Rental Revenue
The primary goal of this app’s rental car service is to generate profit from rental revenues. Commissions, calculations and end-of-day rates comprise the primary elements that affect the income of car rental companies. Integrating systems to enable the car rental business to charge fares to customers is the foundation of an app that facilitates car rental.
Subscription Plan
Cabs can be rented as a means of transportation for people who do not have a car. People generally prefer hiring cars over public transportation. It is an opportunity to earn money using your app to rent automobiles. Subscription plans that cater to the needs of car rental app users enable their coexistence.
Tips for a Successful Car Rental App Development
A few basic actions set the foundation for the development of your car rental application. It is essential to stay flexible with the most recent technology and trends to ensure long-term success.
The development of a car rental app like HiyaCar. needs an organised process. This is an extensive description of the key aspects involved in developing the app:
Market Research & Analysing Audience
Begin by conducting thorough market research to understand the market’s competition, identify patterns and assess potential opportunities. Always study the market that you want to enter to discover its preferences, needs and expectations. This will guide the development of your application, helping you create features that meet your customers’ requirements.
Select a Suitable Technology
The next step involves selecting the best technology to ensure your app stands out from the crowd. You should be aware of the platform you are using, which includes iOS android or a cross-platform solution. You should also consider the backend infrastructure and any third-party APIs that you require. Cross-platform development could save both time and cost. It is essential to search for platforms that offer flexibility, security and a seamless user experience.
App Design and Wireframing
Create wireframes and prototypes that accurately describe the app’s layout and flow to create an attractive and user-friendly application. The primary focus should be on an intuitive navigation interface and efficient search functions with a particular attention to your users’ interface.
Hire A Dedicated Development Team
For a reliable car rental service, ensure to hire a reliable car rental app development agency, designers and project managers. Both the frontend (user interface) and the backend (server infrastructure) solutions are equally crucial. The front end presents an attractive and user-friendly interface, while the back end handles data storage and security functionality. The front end, along with the back end, is crucial to the development of a successful and seamless car rental application.
Testing and Deployment
Check your app carefully to identify and correct any bugs or issues. Conduct usability tests to ensure that users have a positive experience. Test the security of your payment method and user data security. It is crucial to thoroughly test each function, including navigation in the vehicle, tracking of payment bookings and customer service. They are tested across a variety of platforms and operating systems to guarantee the highest performance.
The Key Takeaway
As you continue to work, be aware that marketing your application is equally crucial as launching your application.
Spend money and time on advertising to ensure that the correct people view your app and build momentum.
We suggest optimising your store’s performance to improve its visibility and increase your app’s listing on both the App Store and Google Play Store, allowing it to reach more users.
Alongside advertising, your app must concentrate on promoting your rental car business. It will attract people who are searching for your app and service.
FAQs
How do I market my car rental service to prospective customers?
Implementing a well-thought-out digital marketing strategy that incorporates search engine optimisation, social media marketing, targeted online ads and engaging content can effectively promote your app’s use for car rentals.
What are the most important characteristics of an app that lets you rent cars?
The most significant advantages of a rental car app include a location finder, roadside assistance, fast car reservations, the ability to review and modify reservations and the ability to select a car.
How can I connect my car rental company with a mobile app?
To connect your existing car rental business with a mobile-friendly app, you can collaborate with the team at Bestech, which specialises in developing user-friendly apps.
What technology is used in the creation of apps for renting cars?
Tech stacks like React, Node and Next.js are the most efficient methods of creating apps that allow you to hire automobiles. At Bestech, we utilise the latest technologies to create an engaging and feature-rich app.
