Being part of the sharing economy isn't enough anymore. Sharing now has to be part of the on-demand economy as well.
To rent a car on Getaround, a car-sharing startup, people used to send a request to the car's owner, who had to approve or decline the request and arrange for a car key hand-off. Now, with $24 million in new funding to back it up, Getaround is pushing toward making all its cars available to rent on demand.
To make that happen, all users who rent out their cars on Getaround have to agree to let any of its screened users rent the car, and every car has to be equipped with a device that lets users unlock the car with their phone.
That on-demand availability has made Getaround more appealing to renters and more lucrative for car owners, said Getaround cofounder and marketing director Jessica Scorpio.
"People used to request a week in advance, but now almost all trips happen within a couple of hours," Scorpio said. "It has really changed the business pretty fundamentally."
The new funding round, announced Thursday, was led by
Getaround, which has been focusing mostly on its hometown of San Francisco, plans to use the funds to expand in Oakland, Portland, Washington D.C. and along the East Coast. It already offers some cars for instant renting, but it's hoping to eventually make all of its cars on-demand.
"By end of year we'll no longer be offering anything off demand," Scorpio said. "That's basically the shift." Car owners who sign up now only have the option of offering their car on demand and can make about five times as much renting out their car if it's offered on demand. On average, car owners pull in $6250 a year, and overall, Getaround is seeing about 100,000 rental hours a month, Scorpio said.
Cox Enterprises' auto industry connections are already proving useful to Getaround, Scorpio said. The startup is offering a deal with Fiat that lets customers buy a Fiat at a discount if they sign up to rent it on Getaround.
"They have deep relationships with dealers and car manufacturers," she said. "Partnering with dealers is a great way to partner with new car owners."
