Discovercars is a car rental aggregator based in Latvia and currently operates in 145 countries in 10,000 different locations. The major source of traffic to the website comes from search engines and other leisure websites such as Skyscanner and Kayak.
Starting an online car rental business with a global presence such as Discovercars might require efforts to tackle the competition. The multiple factors to consider include vendors to rent out their cars, effective methods to bring traffic to your website, damage recovery, multiple revenue streams, etc.
This article guides entrepreneurs in starting their car rental business by explaining the business model and revenue streams of Discovercars.
How Does Discovercars Work?
Discovercars has a pretty simple workflow, where approved vendors list out their cars for rent. These cars are listed under multiple categories along with the charges depending on the type of car and rental period duration.
To rent a car on Discovercars, the customer needs to select the vehicle, pay a small payment upfront, and the remaining amount at the time of car delivery/collection followed by document verification. The documents required for verification include a valid driving license, a confirmation voucher from the company, identity proof, and a credit card for payments.
Discovercars also allows its users to compare the prices with several other car rental businesses to offer a minimum price. Additionally, users can also cancel the bookings with no cancellation charges in a given time frame.
How To Start An Online Car rental Business From Scratch?
Though it requires much effort to start a car rental business from scratch, strategizing the key steps makes it easier to materialize the idea. You can start by defining a business model focusing on your target audience, location, and types of car your business will be dealing with. Subsequently, you can invest in efficient car rental software that helps in smooth operations for you, car owners, and customers as well.
Multiple revenue streams help in the stability of your online car rental business. So, it’s essential to have diversity in revenue-generating sources on your online rental platform. Different revenue streams that can be implemented in an online car rental business include rental fees, paid listings, advertisements, and subscriptions.
Apart from business models and revenue streams, you should have an efficient technology solution that helps you with rental marketplace requirements to manage the operations. Features such as agreement management, order management, and document verification are a must for online rental software.
When choosing a car rental software for your business, you should be very particular about the services you would be providing. As this narrows your requirements and helps you in finding software that caters to the demand of your business.
While Discovercars has a daily traffic of more than 42k users, it gets easier for them to create diverse revenue streams and target multiple locations. Also, trusted and renowned vendors such as Hertz, Enterprise, and Alamo provide their cars on Discovercars as well.
So, implementing their business model and revenue streams won’t help in the first place. A car rental business requires an efficient rental software and a versatile action plan depending upon the location, and target audience.