Startup Model – Community Based Car Rentals

The Model: A platform for users to hire and rent cars from each other. The charges are usually less than professional car rental companies.

Startup Doing It: Drivy (French startup)

What I Like:

Core Idea – Users can rent cars for lower costs. Also other users get to monetize the idle time of the car they own.

Community Based – Forming a community helps build user trust.

Environment Friendly – Since car rentals become cheaper with this model, the interest in buying new cars goes down, thereby proving beneficial for the environment.

My Concerns:

Competition – A lot of competition can be seen in the same space in different parts of the world. Scaling to other countries might be difficult.

User Trust – Car owners might be apprehensive in letting out their cars to people they don’t really know. The startup does provide insurance to mitigate this factor.