Are you curious about how Turo became a successful cutting-edge automobile rental company? If so, then you've just come to the right place. Entrepreneurs can learn a lot from this brand’s story.
Here we’ll explore every aspect of this cutting-edge business from its beginnings to how it works today. We'll go through essential information on topics such as what Turo is, Turo’s valuation, and much more.
So if you're curious how Turo’s story can help you with your own business, stick around - because everything you need to know is just ahead.
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What is Turo?
Turo is a unique car-sharing platform that connects travelers with hosts who offer vehicles for rent in the US, Canada, and the UK. It allows renters to take advantage of various cars for any occasion while allowing hosts to earn money by renting their cars.
With its reliable and convenient platform, it gives renters access to a fleet of cars at competitive prices while giving hosts the ability to build their car-sharing businesses.
Who founded Turo?
This company was founded in 2010 by Shelby Clark, who had the support of her Harvard Business School classmates Nabeel Al-Kady and Tara Reeves. The company began in Boston, MA but quickly expanded to become a nationwide car rental business headquartered in San Francisco, CA.
What is Turo's origin story?
Shelby Clark came up with the idea for Turo in 2010, and Tara Reeves and Nabeel Al-Kady, two of her classmates from Harvard Business School, supported it. The startup - initially called RelayRides - began operations in Boston, Massachusetts, but soon spread its reach nationwide with a San Francisco, California headquarters.
The concept behind Turo is based on similar online sharing economy marketplaces such as Airbnb and eBay, where people can lend out their services or products for money. For Turo, that meant providing car-sharing services to those needing a vehicle while allowing hosts to generate income by renting out their cars.
In 2011, it teamed up with the car producer General Motors and their OnStar division to provide renters with a way to unlock GM cars using their smartphones, all without needing extra technology. However, by 2013, RelayRides had suspended its OnStar integration and usage of in-car devices in favor of manual key exchange.
The company received more than 500 million in investments from various investors, including Google Ventures, Shasta Ventures, Trinity Ventures, and more from 2010 to 2021. This allowed Turo to become well-known in the car-sharing community and expand their platform further.
In November 2015, Turo rebranded to solidify their transition from short-term car rentals to long-term ones. This was done to reflect the company's shift away from primarily offering short-term rentals and to create better brand recognition amongst customers. This move was successful, with Forbes including it in their list of "hottest on-demand startups" in 2015.
Expansion Overseas
Due to its success and popularity, the company decided to expand its services beyond North America and launch in the United Kingdom later that same year. By 2016 and 2017, they had also entered Canadian provinces: Alberta, Ontario, and Quebec.
In July 2018, Turo announced plans to roll out a new in-car device that would allow GPS monitoring and remote unlocking through the app. This addition was an excellent way to boost security for renters and hosts.
By 2020, Turo had become the leading car-sharing platform in North America, with millions of users and thousands of vehicles listed on its app. The company received an additional $250 million investment from InterActiveCorp (IAC) in 2019, which made IAC its largest shareholder.
This company's success is largely attributed to its focus on convenience, flexibility, and customer satisfaction. From allowing users to unlock cars with their smartphones to providing access to various vehicles and locations worldwide, Turo has stood out among competitors in the car-sharing space.
What is Turo's valuation?
As of 2023, it has a valuation of $1.28 billion. This is due to the company's strong financial performance and success in expanding its operations beyond North America. With an estimated 11 million users worldwide, it is well-positioned to continue its growth in the years ahead.
By investing heavily in its technology, security measures, and customer service, Turo is poised for continued success in the future.
How was Turo funded?
Turo has been funded by various investors, including Google Ventures, Shasta Ventures, Trinity Ventures, and more. These investments have allowed the company to expand its domestic and international operations while investing heavily in its technology, security measures, and customer service.
In 2019, Turo received an additional $250 million investment from InterActiveCorp (IAC), which made IAC its largest shareholder. This investment has allowed Turo to move forward in its mission to provide convenient, flexible, and secure car-sharing services worldwide.
Overall, Turo has raised $502.6M in funding over 13 rounds.
On Apr 1, 2022, Turo raised another $35M. Turo is funded by 39 investors, with Allen & Company and Manhattan Venture Partners being the most recent investors. Turo has also acquired several organizations, most recently acquiring OuiCar.
The investments and acquisitions have allowed the company to continue expanding its platform and offerings to customers worldwide. Thanks to these investments, Turo continues to be a leader in the car-sharing market.
Turo has seen great success since its inception due to its focus on customer convenience, flexibility, and satisfaction. With investments from the world's largest investors and partnerships with major companies, Turo looks poised for continued growth and success in the years ahead.
What lessons can entrepreneurs learn from Turo?
Entrepreneurs can learn several lessons from Turo, including focusing on customer convenience and satisfaction, investing in technology and security measures, and expanding into new markets.
By leveraging their investments and partnerships with major companies, they have expanded their operations domestically and internationally. They have also managed to stay ahead of the competition by investing in their technology and security measures.
Furthermore, Turo has demonstrated the importance of focusing on customer satisfaction and convenience. By offering convenient access to various vehicles and locations worldwide, they have stood out from other car-sharing platforms and increased their user base.
FAQ
What is Turo?
Turo is a car-sharing platform that allows users to rent cars from local hosts. It operates in more than 8,000 US, Canada, and UK cities.
How does Turo work?
Users can search for available vehicles based on their desired location and rental duration. Once they find a vehicle that meets their needs, they can book it and pick it up from the host. After the rental, users return the car to its original location.
What kind of cars can I rent through Turo?
Turo offers various vehicles for rent, including cars, SUVs, RVs, trucks, minivans, and luxury vehicles.
Is there a minimum rental period?
Yes, the minimum rental period is generally one day.
How much does it cost to rent a car through Turo?
The cost of renting a vehicle on Turo depends on the type of car, location, and length of rental. Generally speaking, Turo’s prices are competitive with traditional car rental companies at as low as $25 per day.
What kind of insurance coverage is provided by Turo?
Turo provides liability and collision protection for all its vehicles. This protection covers the vehicle’s fair market value in case of an accident or theft.
Does Turo have a loyalty program?
Yes, Turo rewards guests for being frequent travelers on our platform with a loyalty bonus. The more you rent through Turo, the higher your prize will be.
Is there a fee for canceling a rental?
Yes, if you cancel a trip more than 24 hours before the start, we will deduct a $25 fee from your account. If you make the cancellation less than 24 hours before the start of your rental, we will deduct a $50 fee.
Does Turo offer pickup and drop-off services?
Turo does not offer a fixed pickup and drop-off location when you book your trip. However, you can request to change the pickup or drop-off location after confirming the booking. You can still ask to change the return location during the rental period.
What are the benefits and drawbacks of using Turo?
The main advantage of using Turo is that it provides access to various vehicles from local hosts. Plus, users can save money by renting cars for shorter periods. On the other hand, Turo does not offer pickup or drop-off services, and cancellations may incur a fee.
Takeaway
Turo is an innovative company that has revolutionized the rental car industry. With an extensive inventory of vehicles, no membership fees, and excellent customer service, they have rapidly increased their market share and are quickly becoming a household word.
Providing customers with a wide variety of cars at different price ranges and allowing them to choose the vehicle that works best for their needs makes renting hassle-free and affordable. In addition, by utilizing the sharing economy model, customers can save money and do their part in reducing the environmental impacts of traditional rental car fleets.
Turo’s brand story showcases the power of collaborative consumption and unlocking new opportunities in the sharing economy. It encourages individuals to leverage their underutilized assets to create a viable business, fostering innovation and entrepreneurship in the transportation industry.
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