The mobile app development industry is coming up with fantastic apps every single day and establishing new options for businesses to generate revenue. In an age defined by mobility and convenience, on-demand car rental app development is one of those successful ventures that have become a great source of convenience for users and raised businesses worth billions.

Car rental apps have become the go-to solution for both travelers and local commuters who are looking for a quick and efficient means of securing a vehicle for their journeys.

If you want to be a part of this growing market and make a profitable business with car rental app development, then this blog is for you! Here, we will explain every aspect involved in creating a care rental mobile application. To start with, let’s first understand the concept and analyze the stats showing the growth of this industry. 

Exploring the Concept of a Car Rental Mobile App

car rental mobile app development

A car rental mobile app is a super easy way to rent a car using a smartphone. Users can look for available cars, pick where and when they want to get the car, choose the type of car they like, and handle everything about their rental right on their phone. 

For the companies that rent out cars, this app helps them keep track of their car reservations and handle customer requests quickly. It has cool features like car availability, showing where the car is with GPS, and finding the closest rental spots. 

In a nutshell, this app is beneficial for both customers and rental companies, ultimately providing an efficient and convenient rental experience. 

Read More: On-Demand Private Jet Booking App Development – Cost & Key Features

Market Statistics of the Car Rental Industry

The on-demand car rental industry stands among the most prominent industries right now, and here we have the stats! 

  • It was valued at USD 122.3 billion in 2022 and is estimated to reach a CAGR of 7.4% between 2023 and 2032.
  • The expected Average Revenue Per User is US$181.50
  • The number of car rental users is expected to reach 0.62bn by 2027.
  • Through online sales, 72% of total revenue will be generated in the car rental market. 
  • Regarding global comparison, the highest revenue will be generated in the USA, i.se., US$29,940m in 2023.
market stats

Image Source: Graphical representation of the Car-Rentals Worldwide Market! 

Latest Market Trends in Car Rental Business

Shift Towards Electric and Hybrid Vehicles

 There is a massive demand for electric and hybrid rental cars as users are looking for sustainable transportation. That’s why rental companies are expanding their fleets to include more fuel-efficient and eco-friendly options. Also, they are offering many benefits, such as real-time inventory and updates regarding the charging stations.

Blockchain Technology

Integrating blockchain in car rental apps makes it secure and transparent, which helps build customer trust and reduce the risk of fraud. This technology provides several features, including secure transactions, vehicle history, and maintenance records. 

Personalization

Car rental companies are leveraging the power of data analytics to understand consumer preferences to offer them personalized experiences and build strong relationships. Features like pricing, vehicle options according to needs, preferences, and loyalty rewards can be integrated into the app.

Short-Term Rental Services

This trend is growing with time and seeking a lot of popularity among users because many people only need to rent a car for part of the day or longer. Car rental companies are now offering options to rent a car by the hour. So, instead of renting a car for a full day, customers can pay for just the necessary hours. It’s like paying for the exact amount of time they use the car, which can be more convenient and cost-effective for short trips.

Contactless Rentals

Many car rental companies have adopted contactless pickup and drop-off options, allowing customers to book, access, and return vehicles using mobile apps or self-service kiosks.

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Business Models of Car Rental Application Development

car rental software development

Franchise Model

  • Entrepreneurs can use the Franchise model to operate localized versions of the car rental app and brand in various geographic locations.
  • This model allows the parent company to expand its presence without the need for direct ownership and operation in every market. 
  • You can generate revenue through various means, such as franchise fees, royalty fees, and revenue-sharing agreements. 

Peer-to-Peer (P2P) Model

  • The Peer-to-Peer (P2P) Model in car rental app development connects individual car owners willing to rent out their personal vehicles with users seeking temporary transportation solutions. 
  • Here, the primary source of revenue generation is the service fee or commission charged by the app on each successful transaction. The fee is calculated as a percentage of the total rental amount and shared between the car owner and the renter.

Fleet Ownership Model

  • In the car rental app development industry, this business model requires significant investment in establishing a fleet of rental vehicles. 
  • Entrepreneurs who use this model, purchase and maintain a fleet of cars. Users can rent these cars via app. Hertz, one of the most renowned names in the car rental industry, follows a similar business model to this one. 
  • In the Fleet ownership model, revenue is primarily generated from rental fees charged to customers. Majorly, the base fare contributes to the primary revenue stream. Also, pricing typically varies based on the vehicle’s type, demand, and rental duration.
Car Rental App Development

Types of Car Rentals Mobile Applications

Self-Driven Car Rentals

In this category, a user books a car for rent, which the user himself drives. The charges are calculated based on the selected car and the number of hours for which the car is hired. It’s a flexible arrangement where the user can choose the car that fits their requirements and specify the duration they intend to have the car at their disposal. 

Local Car Rentals

Local car rental service offers a versatile and convenient approach to renting vehicles. Users have the flexibility to choose from different rental periods, including hourly, half-day, and full-day options. This means they can rent a car for a quick errand in town, a half-day excursion, or a full-day road trip, according to specific requirements. 

On-Demand Ride-Hailing Apps

Through on-demand ride-hailing apps, users can book a car, and a designated driver arrives to pick them up and transport them to their desired destination. Additionally, these apps extend their offerings to include the convenience of renting cars directly through the same platform. This means that users can access not only immediate rides but also plan for longer-term rentals, all within the same user-friendly app. Hire our experienced app developers to build taxi application.

Traditional Car Rental Apps

Traditional car rental apps allow users to rent cars from their established fleets. With the app’s help, users can easily browse the available cars, make reservations for the one they like, and complete the rental payment.  

Car Sharing Apps

With these apps, users can rent a car for as little as an hour or even minutes. It’s all about on-the-spot convenience. Just open the app, find a nearby car, and book it. It’s that easy! These services are suitable for quick, on-demand rentals and often available in urban areas.

Peer-to-Peer Car Rental Apps

These apps allow individuals to rent their cars to other users. It’s a peer-to-peer approach where regular people share their vehicles with others for a fee. These are somewhat similar to car-sharing apps, but in this case, regular people own the cars, not a big company. 

Luxury and Exotic Car Rental Apps

Users can rent luxury and exotic cars here. These might include high-performance sports cars, top-tier luxury sedans, and even rare or vintage models.

Corporate Car Rental Apps

When it comes to corporate vehicle rentals, businesses may use specialized apps provided by car rental companies to manage corporate vehicle rentals, expenses, and reporting for their employees.

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Features Car Rental App Features for a User-centric Application

User Panel

Sign-up/Login-up

This is the first page where the user lands. Here the user signs up for the app using their email ID or social network accounts.

Multiple Car Option

From here users will be able to choose the type of car that meets their various needs. This car rental app feature makes it easier for the users to commute comfortably.

Schedule Booking

One can book the car after deciding the type of car they want to rent.

Book Now

Using this feature, users can instantly book a rental car, in case there is some urgency or critical requirements.

Manage Bookings

This feature makes it simple for users to manage confirmed bookings and also the time-span charted just with a single click. Besides, they can also keep track of future bookings.

Fare calculator

Users can share the destination and route to see the journey time and estimate the cost of renting the car.

Receipts & Payments

Users can easily pay the fare charges and get the ride receipts via in-app digital payment integration.

Alerts & Notifications

Upon booking confirmation or achieving a milestone, users receive alerts, SMS, and notifications.

Track for Security

Customers can track the location and share it with their friends in real-time to maintain security.

Cancel car booking

From this section, users can cancel upcoming bookings in case some urgency has emerged, thus making the car rental solution all the more effective.

Door-step Delivery

Users can book cars at their doorstep for the stipulated time period and drive them to their desired locations.

Car Pickup Point

A specific landmark or navigation route can be assigned by the user to collect the driving car.

Bonus Read – Why car rental businesses must Invest in car washing app development

Admin Panel

Dashboard

From this section, Admin is able to monitor all cars linked to the vehicle and also the one that has been assigned to users.

Car Management

The admin will be able to update car and vehicle information and also the user location details, hence optimizing the vehicle management system.

Customer Management

The entire information of users associated with the app can be monitored & stored in this section.

Payment Manager

This section is where the Admin manages and stores payment details, payment gateways, and commission amounts, hence making the transaction system quite transparent.

Real-time Reports & Analytics

Real-time reports related to car rental details like the category of cars selected the most, time-schedule, and the number of orders accumulated are displayed in report form to streamline the business processes.

Manage Car Category

From here, the Admin manages the car categories and with the help of that, information regarding vehicle availability is updated according to rental booking requests.

Manage Fares/Location-based charges

From this section, the Admin decides and manages fare structure, on-demand charges & rental costs for a specific area or navigation route.

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These were some of the common car rental app features that our experts integrate with your solution. For a competitive and interesting solution, we offer advanced app features too.

Read as well: Taxi Business Ideas: How to Start a Profitable Taxi Business

Additional Features of On Demand Car Rental Mobile App Development

Assign Driver

Through this feature, the user can book Car & Driver whenever required. It proves to be helpful in times when the user has to take a long-distance ride or planning a holiday. Thus, it encourages the user to book your car, in case, the driver is unavailable they have to search for some other alternative to take the ride. After all, often users prefer cars & drivers that belong to the same service provider. Users can also specify driver preferences, on the basis of gender, age, experience, reviews & ratings, etc.

Interactive Statistics

This feature effectively streamlines the entire business process. Real-time reports regarding distances, base fare, fixed packages, time rates, as well as other settings, are easily generated, so to monitor the business proceedings and extract the necessary business insights.

Operational Zone Structure

If you are looking to make your business more customized, then this feature is what you need to have in your app. It will help you serve areas that can generate the maximum amount of bookings. It is helpful in making users aware of services offered by you in that particular area. This feature not only attracts the users but also encourages them to book rental cars due to the advantages it delivers.

Payment Gateway

Incorporating the digital payment system is critical for car rental app development. Multiple payment options must be integrated like e-Wallet, NetBanking, and Credit/Debit Cards so that users can make in-app payments. Thus, it allows users to make payments for scheduled car bookings post the ride while also assuring on-time car delivery. Users really appreciate a transparent payment system as it saves them from payment-related hassles.

GPS Tracking

Integrating GPS technology in your app proves helpful when you assign drivers while also aiming to meet the travel requirements of users. This feature allows users to track vehicle location in real time and also suggest optimized routes to drivers. Users can also update their friends about their location as well as share it with the Admin, thus ensuring security. Drivers on their part can also find user pick-up points which makes the process more convenient for them.

Cloud Environment

Cloud-based servers are helpful in storing all crucial business data & deals in a way more secure manner. This technology manages information related to users, cars, and drivers in an authenticated way. Thus, it gets easier to handle data-driven operations as well and all necessary information can also be accessed at any desired time & location.

Track Behaviour

The user’s search criteria get smart with the use of algorithms. These algorithms store recent bookings that users have confirmed. Hence, when the users use the app to schedule a booking next time, the app will display relevant car categories and previous specifications set by users. Thus, users can schedule car bookings and avail services easily.

Promo Offers

When users receive promo code & offer on a regular note, they are encouraged to book their car more often. This also boosts user engagement and app visibility. After all, users love availing services at a low price.

Rental Cost Calculator

This is an interesting feature for a car rental application to have as it enables users to calculate car rent. The user is simply required to enter the city, the time & date of receiving the rental car, and the date of return to use this feature. Thus, the calculator graphs a rough estimate of the rental cost that will be incurred, hence keeping the user aware in advance regarding upcoming rent expenses.

The advanced car rental app features make your application stand out and offer users extended functions and services.

Read Also: Enrich the User Experience with these Features in your Taxi Booking Mobile App

Benefits of On-Demand Car Rentals App Development

develop a car rental app

Enhanced User Experience

Well-designed mobile apps developed by an experienced mobile app development company provide a seamless and user-friendly experience for users, making it easy to find, book, and manage rentals. 

This accessibility simplifies the process for returning customers and makes it easier for them to return for future bookings. As a result, customer retention is improved, and the business benefits from repeat business. 

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Increased Brand Visibility & Reach

We all are aware of the fact that the Apple App Store and Google Play Store have vast user bases. By listing the app on these platforms, your brand can access a wide and diverse audience. Users who are actively searching for car rental services are more likely to discover the business when browsing app stores, especially if the app is well-optimized with relevant keywords. 

Competitive Advantage

Having an app makes the business stand out from regular car rental places by being more modern and tech-friendly. Car rental companies can provide better customer service, which makes tech-savvy consumers like it more.

Marketing & Promotion

Do you want to attract more customers to your brand who are most likely to be interested in your services? If yes, then without thinking twice, choose the on-demand car rental app development. You can run paid targeted advertisements and special offers within the app. 

For instance, if a customer frequently books SUVs for family trips, the app can display ads for upcoming promotions on SUV rentals. This will enhance engagement, and significantly, the number of potential bookings will increase. 

Also, the app can send push notifications to users’ devices, which keep them informed about the latest deals, promotions, or new additions to the rental fleet.

 Analytics and Insights

The mobile app developed by a reliable car rental app development company in the USA allows businesses to gather valuable data and insights from its usage. Ultimately, this helps them to make informed decisions, optimize their services, and improve customer satisfaction.

Transparency

Users can see the rental rates, additional charges, and terms and conditions before making a booking. Also, they can check reviews and ratings of vehicles and owners to make informed decisions. This ensures transparency and helps business owner wins the trust of their consumers. 

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How Do On-Demand Car Rental Apps Work?

On-demand car rental apps make the process of renting a car more convenient, transparent, and efficient for both users and car owners. Here is a detailed step-by-step explanation of how on-demand car rental app development exactly works. 

  • Firstly, consumers need to download and register for an account by providing personal information on the app to use it.
  • Once the account is registered, users can choose from the available rental vehicles listed on the app. They can filter their search based on factors such as location, vehicle type, rental duration, and price.
  • When the users find the vehicles according to their needs, they can select and proceed to book them. The app may verify the user’s identity and driving credentials to ensure they are eligible to rent a vehicle. 
  • Users provide payment information within the app, and it will calculate the total rental cost, which may include the base rental fee and additional services. 
  • After the booking is confirmed, users receive information about the pickup location and access instructions.
  • Both the rental and the car owner have the opportunity to leave ratings and reviews for each other, which helps maintain trust and transparency within the app’s community.

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Top Car Rental Mobile Applications

Hertz Car Rental

Hertz

Hertz is one of the most established brands in the car rental industry, with outlets across the United States and other nations. Its mobile app allows one to set up a new rental and manage current rentals simultaneously. Also, if you are a member of Hertz Gold Plus Rewards, you can avail a number of benefits and manage and redeem your points through the app. 

Enterprise Car Rental

Enterprise

Another name in the list of top car rental mobile applications is Enterprise Car Rental, which is designed to make it easy for customers to rent and manage cars. Vehicle reservation through this app is as seamless as doing it in person. Further, it is compatible with a number of different platforms, including Android, iPhone, iPod touch, and Mac.

Recommended Read: iOS App Development Services

Alamo – Car Rental

Alamo

Alamo is one of the finest vehicle rental apps out there where you can seamlessly find the appropriate kind of vehicle for your needs. Its mobile app will provide all the information related to the vehicle, such as its mileage, the number of people it can accommodate, and the approximate number of luggage it can carry.

Turo

turo-car-rental-app

Turo is more than a car rental app as it is known for its peer-to-peer car-sharing marketplace. It has a community of over 10 million members and a large selection of vehicles to choose from. Here, you will find both short-term and long-term rentals according to your requirements. 

Skyscanner

Skyscanner

Last but not least, Skyscanner is another car rental app that allows you to book a car rental. Along with that, users can also book flight tickets and accommodations, all from the exact location. Also, you may check the reviews on rental vehicles written by other users to know more about the offered services.

Related Post: Ride-Hailing vs. Ridesharing vs. Carpooling: What is the Difference?

Technology Stack For Car Rental Mobile App Development

car rental website development

To develop a car rental mobile app, it is vital to choose the right technology stack that is able to meet diverse user & business needs. This right technology makes it possible for the app to sustain itself in the hyper-competitive marketplace.

  • Location Tracking: Google Maps & Apple Maps
  • Database Management: MongoDB, HBase, Cassandra, Postgres, MySQL
  • SMS, Voice, & Phone Verification: Facebook SDK or Google sign
  • Real-time Analytics: Google Analytics, Flurry, etc.
  • Cloud Technology: Amazon Data Servers & Google Cloud servers

Required Team Structure to develop a Car Rental App

  • Project Manager
  • Developers
  • Designers
  • Testers

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Cost Estimation for Car Rental App Development

Lastly, it is about deciding the cost of Car Rental Mobile App development. As per the app’s complexity & features that are to be incorporated, the cost of a car rental mobile app is determined. An app development goes through the following processes:

  • Designing (50-80 hrs)
  • User Panel Development (350-400 hrs/each platform)
  • API Development (90-120 hrs)
  • Admin Panel (130-190 hrs)

Hence, a sophisticated car rental mobile app development will cost somewhere between $12000-$15000. However, if you choose to integrate more advanced features into your app, it will accordingly exceed the total cost.

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Important Things to be Considered in Car Rental Mobile App Development

Safety & Security

It is necessary that the on-demand car rental app adheres to government guidelines and provides proper safety measures to the users. Roadside assistance is also integrated into some applications, so if users face any sort of emergency situation, they can reach out to the service providers and seek help from them. 

Bookings Management

Car rental mobile apps must allow users to manage their bookings by confirming when they want to use the automobile. This helps maintain transparency and keep track of future appointments.

User Authentication

The app should do proper authentication of all the users who are willing to avail the services. Their personal details, along with proper ID proof and contact details, should be listed carefully in the records of the service providers. 

Service and Maintenance

A brief overview of the car maintenance should be mentioned on the app to keep users informed about how the vehicle should be maintained. This will ensure car safety and bring transparency between the service provider & the user. 

CRM (Customer Relationship Management)

Proper enabling of the CRM system will help you to deliver emails, newsletters, discount coupons, and other promotional materials to your consumers. By doing so, you can build strong relationships and long-term bonds with them.

Read More: On-Demand Ride-Sharing App Development

Conclusion

on demand car rental app development

Frequently Asked Questions For Car Rental Mobile App Development

THE AUTHOR
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From a young age, Keith’s passion for technology led her to explore the inner workings of computers, gadgets, and software, which eventually led to a formal education in computer science. Armed with a Bachelor's degree in Computer Engineering, she embarked on a journey to bridge the gap between cutting-edge technology and the everyday user.

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