Turo targets former Zipcar users with capital-light car-sharing model

An online car-sharing level seeking to pull erstwhile Zipcar users is expanding its beingness successful London, promoting peer-to-peer conveyance prosecute arsenic a mode for backstage owners to make regular income from cars that would different beryllium idle.

Turo, a US-based start-up operating successful the UK since 2018, says much than 2,000 London motorists are already listing vehicles connected its platform. Unlike Zipcar, which withdrew from the superior astatine the extremity of December, Turo does not ain oregon lease its ain fleet, alternatively facilitating short-term rentals betwixt backstage individuals.

The company’s UK managing director, Rory Brimmer, said the exemplary avoided the superior costs associated with fleet ownership. Speaking to The Evening Standard, helium said vehicles were “idle astir of the time” and represented “an asset… that tin beryllium generating income”.

Under Turo’s pricing structure, hosts acceptable availability portion prices fluctuate according to request and seasonality. The level deducts betwixt 25% and 35% of the prosecute fee, depending connected the security and work bundle chosen. Turo says the mean big earns astir £400 a month, though returns alteration by conveyance benignant and utilisation.

Mr Brimmer, who rents retired his ain Audi Q3, told The Evening Standard that helium uses the level “around fractional the time”, generating adjacent to £800 a month. He said security screen and licence checks were cardinal to encouraging participation, noting that the institution was integrated with DVLA systems to verify drivers.

Following Zipcar’s exit, Turo launched a £120,000 advertizing run crossed the Tube and London Overground. Mr Brimmer said the institution moved rapidly aft the announcement, describing the spread successful the marketplace arsenic “an opportunity” to seizure displaced demand.

Zipcar earlier said its determination to exit the UK marketplace by extremity of 2025 reflects deteriorating fiscal show and rising operating costs that person made the concern exemplary little viable. In its accounts, the UK limb reported widening losses aft gross fell, a inclination partially attributed to decreasing usage and higher costs for energy, security and fleet upkeep. The instauration of caller charges successful London - including the hold of the congestion complaint to electrical vehicles - is understood to person accrued regular operating costs for a fleet with a important proportionality of EVs, further squeezing margins. In a lawsuit communication, UK wide manager James Taylor announced a ceremonial consultation connected ceasing operations, noting it would not beryllium imaginable to instrumentality caller bookings beyond 31 December arsenic the institution assesses the aboriginal of the business.