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Airport Car Rentals: The Next $10 Billion Industry Ready For Disruption
- Anechoic 14y agoFrequent travelers and members of rewards programs aren’t treated that differently Um, actually we are. With Avis First (free to join) or Hertz Gold (last I knew there was a fee, but that may have changed), I take a shuttlebus to the rental car lot (or at the smaller airports, walk from the gate to the rental lot), look for my name on the message board, walk over to my car, get in, drive to the gate, show the attendant my license and I'm gone. In the really small airports (FSD or FWA for instance) it's literally 5 minutes from gate to road. WRT Flightcar, that has absolultely no appeal to me as a car owner parking at an airport, or as a car renter. As a car owner, when I get back from a trip, I really want my car to be there so I can get home, I don't want to have to deal with my car not being there because the renter got stuck in traffic or had a change in plans. As a renter (for both business and pleasure) I want to be able to have some flexibility in my rentals - if I want to extend my rental, I just visit the website and extend the rental. Would I be able to do that if the guy who's car I'm renting needs it back at a certain time? Also, how do I know that the car I'd be renting would be in decent running order? I think that airport car rentals could use some disruption (for example more flexibility in refueling is nice, but I don't see that Silvercar really solves that problem), but I don't see these businesses doing it. Of course YMMV.
- whatusername 14y agoThe petrol (gas) refuel thing is the only thing that feels all that different from Hertz Gold (I think it's sometimes a 1-time fee -- I got mine free a few years ago). My experience at CBR last week. Walk off the plane. Walk up to the Hertz counter. Wait 20 seconds for the 1 other person in the Gold line. Flash my license. Given my keys and the direction to the lot. Walk to the lot. Drive off. Would have been under 5 minutes from when I walked off the plane.
- rsheridan6 14y agoAs a renter, I've usually already bought my return tickets and have to be at work the next day, so there's no chance that I'm going to extend my trip, unless I get stuck somewhere. The company should have provisions for giving a loaner to a car owner whose car isn't returned on time, but I doubt that would be a problem very often.
- itry 14y agoBoth of your arguments against Flightcar (trust as owner, flexibility as renter) are as valid for Flightcar as for AirBnB. Still AirBnB rents out rooms for some hundred million dollars per year.
- czr80 14y agoWell, the question is not whether their business model is uniformly better than the current model, nor whether it makes sense for everyone. The question is whether there is a sufficiently large group of people for whom the cost savings outweigh the potential hassle/risks. I'm not sure it will, either, but let's see.
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- pbreit 14y agoFlightcar sounds like a tough call...a lot of moving parts to save a few bucks on parking and/or car rental and with added anxiety for both parties. Silvercar sounds more like how renting a car should be (except for the limited car options)(I'd go with a Toyota/VW lineup). The things that are completely stupid with current car rental companies: 1) lengthy checkout process, 2) inability to choose car and 3) anti-customer gas policies.
- rprasad 14y ago*The things that are completely stupid with current car rental companies: 1) lengthy checkout process, 2) inability to choose car and 3) anti-customer gas policies. I suggest you patronize different car rental companies. Discount car rental companies skimp on the service and choices. Better ones (Enterprise, Hertz) focus on the service and only cost a dollar or two more a day than the discounters.
- pbreit 14y agoThe more expensive agencies are routinely double the price. And I'm not sure they fare much better on the points I mentioned.
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- jacquesm 14y agoWhy would I risk my 2 decades+ no claim discount on someone else renting my car? Why would I let someone who I don't know drive the car I take good care of, possibly use it for illegal purposes or deal with the aftermath of fines and so on? Really, that's a pretty bad idea.
- mandeepj 14y agoYour "no claim discount" will still remain valid incase the renter hits your car because you will using renting company's (flightcar\silvercar) insurance for filing claims. You are right with your other points. The OP made up this stuff pretty badly - "There are the lines, the hassles, the constant upsells, confusion around cost of gas and insurance, and about 15 pages of paper that you have to sign before being able to pick out your car and leave the lot. " I have never experienced any of this. Most of times I have used enterprise and few times hertz. Car choice is an issue when it is a long weekend otherwise not a problem at all. I use my own insurance because I know there is no point in using their's. If I can use an insurance for my own car then why should I get some other insurance for renting a car. I get cheap gas, free upgrades from enterprise.
- jacquesm 14y agoYou can't just be 'double insured', insurance is usually on the license, not on the driver. So if I put another driver in my car he/she can claim whatever they want, the law here is that the license owner is the one taking out insurance. By law, as soon as a vehicle is on public roads the owner of the car has to have mandatory insurance. I'm not quite 100% clear on what the situation would be if someone else would be driving the car and they took out insurance to absolve me (and by extension my insurance) for liability, but I'm fairly sure that just driving around with my license plate will cause me to be the party addressed for any injuries/damage caused using that vehicle. That's why license plate duplication is such a nasty thing, you end up having to prove that it wasn't you that caused the damage/fines/whatever. And of course, if they do get into an accident and supposedly their insurance pays for the damage I will still find no car on my return from a trip as well as having to deal with the aftermath of the damage and having a car that was repaired after an accident, which may render it drivable but will significantly impact the book value. Bad plan.
- npguy 14y agoSome people might be okay with the risk of someone else driving their car, for the money, especially in these tough times.
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- kosei 14y agoPerhaps I'm the wrong subject as I don't use AirBnB, but the idea of FlightCar frightens me. Far too much risk to take on for either side with little reward in terms of cost savings. And frankly, I imagine that the paperwork and coordination would create even more hassle than that of a typical rental car company.
- allerratio 14y agoWhat comes after that? An sort of Airbnb for self storage?
- aneth4 14y agoAirport car rentals tend to be pretty cheap (<$200/wk), available, and high quality. This poses a problem for any company attempting to "disrupt" the industry. AirBNB is competing with high priced hotels that often are booked and an existing inefficient P2P subleasing business. Uber is competing with taxi services notorious for poor responsiveness and frequent gaps in availability. I don't see the same room for disruption in the airport car rental market, but there is likely some room for innovation. Don't count on Hertz and Payless quaking in their boots any time son.
- mseebach 14y agoThe biggest problem with car rental is the paper work - for some reason it can take five-ten minutes per customer to deal with, if nothing goes wrong. I've waited 20+ minutes on multiple occasions. There is literally no reason it can't be handled online well in advance (and it typically is, but for some reason it's repeated in person). Car rental needs something like airline self-service check-in kiosks more than FlightCar, IMO.
- smackfu 14y agoJoin Hertz Gold and there is no paperwork. Totally worth it to me.
- rprasad 14y agoJoin any "Gold" or "Executive" level offering from any car rental company. They've offered these plans for years--paperwork is handled when you join, and thereafter your wait time for a car is usually the amount of time it takes you to pull your member card out of your wallet.
- aneth4 14y agoThis can be a problem, though I doubt an alternative airport parking based service would be much quicker. As mentioned by others, Hertz Gold etc really ups the service, but it's usually not worth the 2-4x you pay on the rental. I've found Payless and Fox both to be the cheapest and provide adequate service. I've had run-ins about fees and such, but generally I fell I get excellent value.
- gfodor 14y agoI dunno this seems like a solution in search of a problem. The rental car industry is highly competitive which results in high quality service at low prices. I don't remember the last time someone I know complained about a rental car company.
- tomjen3 14y agoThe brilliant part is that flight car doesn't need an inventory but all their competitiors do. And inventory is a sunk cost that will force the prices higher, but will have no benefit to their customers.
- dutchbrit 14y agoI wouldn't feel comfortable renting my car out. I have visions of people doing burnouts, handbrake turns, trying to dump the clutch etc... You might not notice it at first... Also, lets say I know something is about to go on my car. Something expensive. Why not bring it there and let someone drive it 10 miles until it breaks and blame them for it?! Free repairs? Or how would they handle that?
- dsr_ 14y agoThis will be much more feasible when you drive a robocar. Put it in automatic-only mode, take photos before you leave it, and the insurance will cover all your potential problems (except the inconvenience of coming back home when the car isn't there.)
- tokenadult 14y agoWhen driverless car services are a routine way for people to obtain a car on demand, renting a car at an airport is just one subset of obtaining a car for a one-trip use. It will be interesting to see whether the existing car rental companies have the management strategies and algorithmic understanding of maximizing car return on investment needed to make an on-demand driverless car service a part (and eventually the whole) of their business model. Whoever wants to be in Flightcar's or Silvercar's (or Uber's) business has to think ahead to what the wide availability of driverless cars will do to their whole industry. Those who disrupt can be disrupted in turn, if they are not ready for the future.
- vladoh 14y agoI think car sharing solutions like DriveNow (https://us.drive-now.com/how-it-works/ https://us.drive-now.com/how-it-works/) are much better for this case. Instead of giving your own car to somebody else, it is much easier to drive to the airport in one of the car sharing cars and drop it at the airport, where somebody else can use it to drive back to the city. DriveNow already allow free parking at the San Francisco airport and they are expanding very fast so I think it will be a really valuable service soon.
- aes256 14y agoI don't see much potential here. Airport car rental is mostly grunt work. Moving cars, storing them, valeting them, maintaining them, filling them with gas, sorting out insurance, customer service, screening customers, chasing late returns, pursuing people for damages, so on and so forth. 5% booking interface, 95% on the ground work. There is already healthy competition in the market, and the incumbents do a pretty good job. There are lots of moving parts, so things often go wrong, but it's hard to do better. Who cares about a shiny iPhone app? The existing companies already have passable online interfaces, and if they don't already have iPhone apps they have the capital to roll one out in a matter of weeks and crush any looming competition. I give both of these startups 12-24 months, and the end won't be pretty.
- ricardobeat 14y ago"A pretty good job" (not so pretty when you are waiting in-line for an hour) is not enough. If they can do the grunt work just as well, or better wrt refuelling/cleaning, and a better booking system, they will win. You also missed the picture of car sharing.
- aes256 14y ago> "A pretty good job" (not so pretty when you are waiting in-line for an hour) is not enough. You can bet the leading companies have already invested huge amounts seeking out efficiency savings and ways to improve customer satisfaction. Slow moving and bogged down in bureaucracy they may be, but if there were a simple way to avoid common customer complaints (e.g. long queues) without hurting the bottom line, they would already be doing it. > You also missed the picture of car sharing. I can't think of anyone I know who would even consider sharing their car. It's just an absolute minefield. It might just about work on a small scale, where you know and trust the people you are sharing with, but that kind of thing doesn't scale.
- ricardobeat 14y agoThe big names are trying to do the same: Hertz On Demand, Avis on Location, etc. But they probably generate lots of revenue from the extra fees and hidden costs, so they have less of an incentive to switch to more friendly setups. It's a warming thought that companies are always looking to improve customer experience, but more often than not, they will not do something because it doesn't improve the bottom line, not the opposite. And "hurting the bottom line" depends on the business model, that's where the market can be disrupted.
- TommyDANGerous 14y agoPretty cool ideas, not sure if I'd rent someone my car but I'd definitely rent someone else's.
- genwin 14y agoYou shouldn't let strangers use your car. You are liable for the vehicle regardless who's driving it. Photo traffic tickets and tolls are just the start of the liability issues. When the stranger driving it gets into an accident, you'll be sued too.
- PaulHoule 14y agoPeople around SV might get the wrong idea of how bad airport car rentals are because the car rental center at SFO is probably the worst in the world. I remember coming in on a delayed flight and riding the train out to the rental center, waiting in line half an hour, then finding the car parked in the space I was sent to was entirely different from what it was supposed to be (and the keys didn't work), going back and waiting in line again, getting a call from the satellite police station on my cell because my wife was wondering what happened to me, finally getting a car and remembering I never got a child seat but driving right out because I didn't want to wait in line again. Sensible (unamerican) people just take the BART if they are going to SF. I didn't have that choice because we were going to San Luis Obispo. I'll admit fueling can be a pain, but car rentals at other airports, even big ones, are nowhere near as bad. At LAX, for instance, I reserved a Hertz car on Priceline, caught a shuttle bus to the car rental center, got the paperwork filled out quickly and drove off. On the way back they were handling a huge volume of returning automobiles but it was efficient, really a pleasure. (I did make the mistake of thinking I could go north on the 405 at 5pm on a Friday... Had I known LA a little better, I'd have gone north on the surface streets which are easily accessible from the rental center.)
- ablefire 14y agoI don't rent cars all that of then so there may be all kinds of Pro Tips that I don't know. My biggest gripe with car rentals is not the experience at the counter but the schlep from the terminal to the rental car district. First there is the wait for the shuttle bus, then the tour of the other terminals, then the drive to the rental lost. By the time you get to the counter you've lost 30 minutes of your life to waiting and ferrying. So for me the core problem is that the car is not somewhere extremely convenient at the terminal when I need it. I do recall some uber-statused folks at my work having the rental car company meet them at the curb with the car but this seemed to be an arcane and rarified perk. It's kinda like the last mile problem. Once you actually get to the rental hub then it's pretty painless and quick but getting from the plane to the rental lot is a slow mess.