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Overview and Operational Structure of Turo Car Rental Marketplace

GOOVER DAILY REPORT July 7, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Turo's Operational Overview
  3. User Requirements and Onboarding Process
  4. Insurance and Protection Plans
  5. Payment Methods and Discounts
  6. Cancellation Policies
  7. Case Studies: Turo's presence in CA
  8. Conclusion

1. Summary

  • The report titled 'Overview and Operational Structure of Turo Car Rental Marketplace' provides an in-depth analysis of various operational facets of Turo across different locations in California. Turo is highlighted as a peer-to-peer car sharing marketplace, allowing users to rent vehicles directly from local car owners. This report examines key aspects such as the variety of vehicles available, the roles of individual and Commercial Hosts, and Turo's enhanced cleaning policies necessitated by COVID-19. It further delves into user requirements for renting cars, the onboarding process, and the insurance and protection plans offered. Details on accepted payment methods, discounts for long-term rentals, and cancellation policies are discussed, as well as case studies from locations like Beverly Hills, Calabasas, Oxnard, and Ventura, among others. The report also includes a glossary for key terms related to Turo's services and operations.

2. Turo's Operational Overview

  • 2-1. Peer-to-peer Car Sharing Model

  • Turo operates as a peer-to-peer car sharing marketplace where customers can book vehicles directly from local car owners. Turo hosts share their own personal cars and set their own prices, discounts, vehicle availability, and delivery options. This model distinguishes Turo from traditional rental car companies, providing a more personalized and flexible rental experience.

  • 2-2. Variety of Vehicles Available

  • Turo offers a wide selection of vehicles to suit various needs and preferences. Whether customers are looking for an SUV for a family road trip, a pickup truck for errands, or a classic sports car for a special occasion, Turo has a vast range of options. This variety ensures that customers can find the perfect car for every occasion and budget.

  • 2-3. Hosts and Commercial Hosts

  • On Turo, cars can be rented out by individual hosts or Commercial Hosts. Individual hosts are regular car owners who rent out their personal vehicles, while Commercial Hosts are Turo-approved independent rental car companies or small businesses. Commercial Hosts might require renters to sign a rental agreement or provide a refundable security deposit and offer their own physical damage protection and insurance.

  • 2-4. Enhanced Cleaning Policies

  • In response to the COVID-19 pandemic, Turo implemented enhanced cleaning policies. Hosts are required to clean and disinfect their vehicles thoroughly before every trip. Turo provides hosts with training materials on enhanced cleaning practices to help prevent the spread of COVID-19 and other viruses, ensuring that customers can feel safe and comfortable during their rental experience.

3. User Requirements and Onboarding Process

  • 3-1. Creating an Account

  • To rent a car on Turo, users must create a Turo account. This involves providing a valid driver's license and other necessary identification details. The account creation process is uniform across multiple locations including Calabasas, Oxnard, Carpinteria, Santa Barbara, Pasadena, Thousand Oaks, and Valencia. Once the necessary information is provided, the user will generally be approved almost immediately, setting them up for future road trips, business trips, and family vacations.

  • 3-2. Age and License Requirements

  • In the United States and France, users must be at least 18 years old to rent a car on Turo. However, the age requirement changes depending on the country: 21 years or older in the UK and Australia, and 23 years or older in Canada. A valid driver’s license is mandatory for all users, regardless of the location. This age and license requirement is consistent across the locations mentioned in the report: Calabasas, Oxnard, Carpinteria, Santa Barbara, Pasadena, Thousand Oaks, and Valencia.

  • 3-3. Approval Process for Drivers

  • The approval process for drivers on Turo is quick and straightforward. When booking their first trip, users must enter their driver's license and some additional information. In most instances, the approval is immediate. This rapid approval system applies uniformly to the various Californian locations covered in the report, including Beverly Hills, Calabasas, Oxnard, Ventura, Carpinteria, and others.

4. Insurance and Protection Plans

  • 4-1. Types of Protection Plans

  • When booking a car on Turo in the US, renters can choose from three protection plans: Premier, Standard, or Minimum. Each plan offers different levels of coverage according to the renter's needs. These plans include third-party automobile liability insurance provided under a policy issued to Turo by Travelers Excess and Surplus Lines Company. In Canada, the protection plans also cover liability insurance purchased from Intact Financial Corporation in Alberta, Nova Scotia, Ontario, and Quebec, and from Insurance Corporation of British Columbia (ICBC) in British Columbia. Similar options are available in the United Kingdom with varying limits of financial responsibility for physical damage. All three plans there include up to £20,000,000 coverage under a third-party automobile liability insurance policy provided by Aioi Nissay Dowa Insurance UK Ltd. via Turo broker Aon UK Ltd.

  • 4-2. Coverage Levels Based on Location

  • In the US, Premier plan offers up to $750,000 in third-party automobile liability insurance. In New York state, liability insurance of $1,250,000 is provided. Canadian renters can access liability insurance up to $2,000,000 across Alberta, Nova Scotia, Ontario, Quebec, and British Columbia. In the UK, protection plans offer varying coverage levels for physical damage, but all include up to £20,000,000 in third-party automobile liability insurance. These insurance plans are provided under policies issued by reputable insurance companies specific to each region.

  • 4-3. Liability Coverage

  • In the US, any personal insurance that a renter may have will cover damage to the host’s vehicle before the Turo protection plan, except in limited situations for trips booked in Maryland. The Premier plan in the US offers up to $750,000 in third-party liability insurance. In Canada, renters have access to up to $2,000,000 in liability insurance under their chosen plan, provided by local insurance corporations. UK renters can get up to £20,000,000 coverage under a third-party automobile liability insurance policy. This ensures comprehensive protection for renters using the Turo platform across different regions.

5. Payment Methods and Discounts

  • 5-1. Accepted Payment Methods

  • Turo accepts most credit cards issued by major financial institutions, including American Express and Discover cards, as well as debit cards with a Visa or Mastercard logo linked to a checking account. Apple Pay and Google Pay on mobile devices are also accepted. However, Turo does not accept cash or checks as valid payment methods.

  • 5-2. Discounts for Long-Term Rentals

  • Many Turo hosts offer discounted prices for weekly and monthly trips. The specifics of these discounts vary by host and location, but travelers can often find significant savings by booking longer trips through the platform.

  • 5-3. Early Booking Discounts

  • Turo offers 'early bird' discounts for trips booked a week or more in advance. To maximize savings, users are encouraged to book their trips well ahead of time. Users can also receive occasional promo codes, discounts, and deals by ensuring they have checked the box to receive email notifications on their Account page and by enabling push notifications from the Turo app on their mobile devices.

6. Cancellation Policies

  • 6-1. Standard Cancellation Terms

  • To rent a car on Turo, you must create a Turo account and meet certain age requirements based on your location. You can cancel and get a full refund up to 24 hours before your trip starts. If you book a trip with less than 24 hours’ notice, you have one hour after booking to cancel free of charge. If you cancel after the free cancellation period ends, you will be charged a small cancellation fee.

  • 6-2. Refund Policies

  • Refunds can be issued in two ways if a host cancels a booking: the customer can either rebook another vehicle using the held funds, or choose to have the refund returned to their bank account. This policy ensures that guests have a seamless and flexible experience when they need to make changes to their travel plans.

  • 6-3. Host Cancellations and Guest Assistance

  • In the rare event a host cancels, guests are notified immediately and offered assistance to book another car. Turo will help find a suitable replacement vehicle, aiming to minimize any disruption to the guest's plans. Furthermore, Turo offers temporary hold of the refund for expedited rebooking or can return the funds directly to the guest’s bank account upon request.

7. Case Studies: Turo's presence in CA

  • 7-1. Beverly Hills

  • In Beverly Hills, Turo offers a broad range of vehicles from SUVs for family trips, pickup trucks for errands, to classic sports cars for special occasions. Customers can enjoy more value compared to traditional rental companies and have access to convenient delivery options such as delivery to airports, train stations, and hotels. Approved renters can rent a car on Turo by creating an account, being at least 18 years old in the US, and having a valid driver’s license. Turo provides protection plans (Premier, Standard, or Minimum) which come with third-party automobile liability insurance. Free cancellation is available up to 24 hours before the trip starts.

  • 7-2. Calabasas

  • Turo’s service in Calabasas includes accommodating multiple drivers, provided they are all approved by Turo. Renters can benefit from discounts for weekly and monthly rentals and advance bookings. Payment methods accepted include major credit cards, as well as Apple Pay and Google Pay. The cancellation policy allows full refunds up to 24 hours before the trip starts.

  • 7-3. Oxnard

  • In Oxnard, Turo facilitates car rentals by requiring users to create a Turo account and have a valid driver’s license. Users do not need personal insurance to rent on Turo, as they can select from various protection plans. The service permits adding multiple drivers at no extra fee, and users can get discounts for longer duration rentals. The cancellation and refund policy is consistent with other locations, offering a full refund up to 24 hours before the trip starts.

  • 7-4. Ventura

  • Ventura users have access to a diverse selection of cars, including SUVs and sports cars. The rental process requires account creation and driver verification which is typically quick and efficient. Turo offers protection plans similar to other cities and allows additional drivers to be added without charge. Renters benefit from discounted rates for extended bookings and the flexibility of free cancellation up to 24 hours in advance.

  • 7-5. Carpinteria

  • In Carpinteria, Turo’s rental process involves account creation and driver approval. Renters do not need personal insurance as Turo’s protection plans provide coverage. Users can add multiple drivers to the rental and take advantage of various discounts for long-term rentals and early bookings. The cancellation policy allows a full refund if cancelled at least 24 hours before the trip starts.

  • 7-6. Marina Del Rey

  • Marina Del Rey offers users a similar rental process where they must create an account and be approved as a driver. Turo provides protection plans and allows for multiple drivers on the same rental. Discounts are available for longer rentals and those booked in advance. Payment methods include major credit cards, Apple Pay, and Google Pay, but not cash or checks. Free cancellation is available up to 24 hours before the trip.

  • 7-7. Simi Valley

  • In Simi Valley, users can rent cars by creating a Turo account and getting approved as a driver. Turo offers three protection plans and allows renters to add other approved drivers to the reservation. Discounts are available for rentals that are weekly, monthly, or booked early. The cancellation policy includes a full refund if cancelled 24 hours prior to the start of the trip.

8. Conclusion

  • The report comprehensively reveals the strengths of Turo as a user-friendly, flexible car rental marketplace. Key findings indicate that Turo's peer-to-peer model provides a personalized and cost-effective alternative to traditional rental services, accommodating a wide range of vehicle preferences. Turo's variety of protection plans, including those provided by Commercial Hosts, offers renters peace of mind with adequate insurance coverage irrespective of their personal insurance status. The Enhanced Cleaning Policy instituted in response to the COVID-19 pandemic ensures high safety standards, bolstering customer trust. However, the report acknowledges minor regional variations in services and policies. Future prospects for Turo might involve further enhancements in customer experience and operational efficiency, particularly as it continues to cater to diverse rental needs across different Californian cities. Practical recommendations suggest that Turo can improve by expanding its vehicle range, refining its insurance offerings, and ensuring seamless onboarding processes to fortify its market position.

9. Glossary

  • 9-1. Turo [Company]

  • Turo is a peer-to-peer car rental marketplace that connects car renters with local car owners. It offers various vehicle choices to suit different occasions and budgets, coupled with flexible policies and different protection plans. Turo's model provides convenience and flexibility, making it a competitive alternative to traditional car rental companies.

  • 9-2. Protection Plans [Service]

  • Turo offers various protection plans that differ based on the location of the rental. These plans provide different levels of coverage for renters, offering flexibility and assurance regardless of whether personal insurance is available. The plan coverage includes liability, collision damage waiver, and more.

  • 9-3. Enhanced Cleaning Policy [Safety Measure]

  • In response to COVID-19, Turo has implemented enhanced cleaning procedures for all vehicles. Hosts are required to thoroughly clean and disinfect cars before each trip, ensuring safety and peace of mind for renters. This policy underscores Turo's commitment to health and hygiene.

  • 9-4. Commercial Hosts [Service Entity]

  • Commercial Hosts are professional rental car companies that use the Turo platform to offer their vehicles. Unlike regular hosts, they provide their own rental agreements and insurance policies, adding another layer of options for renters.

10. Source Documents