Last updated on November 5th, 2024 at 05:50 am
The transportation industry is evolving rapidly. The days of waiting in long lines and dealing with paperwork are finished. In today’s fast-driven era, rental car service is available where you can book a vehicle through your mobile phone. Are you planning to develop a car rental app for your business? Before you start, it’s important to understand the cost involved in creating such an app. Creating a successful car rental app requires a solid understanding of the market, user’s requirements and the details of car rental app development. But the big question every entrepreneur has is “How much does it cost?”
In this blog post, we reveal the secrets behind the cost of developing a top-notch car rental app that not only attracts customers but also keeps them engaging. Learn how to create a smooth user experience, offer real-time availability, ensure secure payments, and provide personalized features that make renting a car an enjoyable experience.
From choosing the right vehicle to managing reservations on the go, we explore the essential features, steps, costs, and other factors that can take your car rental app from ordinary to exceptional.
So, buckle up and join us on this exciting journey to transform the car rental industry with cutting-edge car rental app development!
What is a Car Rental Mobile App?
Car rental mobile apps let users rent a car to meet their needs. As a user, you can book the car you want for 24 hours or longer by paying a reasonable fee.
Additionally, some apps like Zoom Cars, offer cars on a subscription basis. This means you can access a vehicle for at least six months which is useful if you travel frequently for work and don’t stay in one place for more than six months at a time.
Nowadays, these car rental booking services have seen a big surge in demand during the pandemic. Besides rental services, users can also enjoy special offers, flexible booking times and the convenience of having cars delivered to their doorsteps or picked up. You can also use Uber that’s a one of the best ride-sharing apps, from anywhere with just your smartphone and an internet connection.
Market Stats
The car rental app development market has a large and constantly growing user base. Like other on-demand services in the industry, these car rentals and ride-sharing apps offer many benefits to their users. Moreover, the rapid increase in users makes this market a prime spot for new business opportunities.
With the growing demand for rentals, new start-ups and small to medium-sized companies have a great chance to grow their business in this competitive world.
To succeed, you need to offer top-notch customer service and a feature-rich app to your users.
Your car rental app must include all the latest market trends. Here we are going to share some statistics about the current state of the car rental app market.
- In 2020, car rental services worldwide earned a total of $55 million in revenue.
- It was found that one user adds over 200 US dollars to the global car rental market.
- Most of the total revenue comes from the US, amounting to about 16.2 billion US Dollars.
- From 2021 to 2024, the revenue of car rental app development is expected to grow by 18% from the current market figures.
- This could bring the total revenue to about $105 million by 2024.
Why Should You Invest In a Car Rental App?
The car rental industry is expanding quickly. Many major investors are investing money into introducing advanced technology in the car rental market. Rental companies are working hard to enhance every part of the car rental system. In the future, we might even see self-driving cars powered by AI as part of the rental experience.
Some people can’t afford to buy and if they do then the maintenance cost is high. The rental app offers a solution by allowing people to use a car for a few days without worrying about maintenance costs. You only need to pay for the time and distance you drive.
To succeed in this competitive market, it’s important to have a clear understanding of your business goals and user’s needs. For this, you can hire a reliable and trustworthy car rental app development company like eBizneeds which can deliver a feature-rich app at a reasonable price.
Here’s why investing in a car rental app creates a profitable business.
- Better customer experience
- Valuable insights
- More bookings
- Efficient operation
- New revenue opportunities
- Reach more customers
How Does Rental Car App Work?
A rental car app can offer two types of services to its users i.e. self-driven car rentals and cab services. Here’s how the car rental reservation software works in the market.
- First, you need to download the app from the app store. Then, you create an account by using your email or phone number.
- Once your account is ready, you can pick the kind of car you want to use and see how much it will cost.
- You can search for the cabs and book them if you are satisfied with the price. For self-drive services, you’ll need to book the vehicle along with the pick-up or drop-off date and time or arrange for the car to be delivered to your door.
- When you search for a cab through the car rental app, a trip request is sent to all available drivers nearby. The driver who accepts your request will be the one to provide your transportation.
What Do People Look for in Car Rental Apps?
People will choose your car rental app development service only if they have certain expectations. Here are some of the facilities that user expects when choosing a car rental service: –
- The app should include a well-integrated navigation system to help people save time by taking the best route for trips.
- It’s also essential to have real-time location tracking so users can see where the cab is and don’t have to wait outside for it to arrive.
- The app should include a rental calculator so users can estimate the cost of their trip before booking a car.
- Offering different payment methods gives users more flexibility since not everyone prefers the same payment option. Common payment choices include UPI, credit or debit cards, internet banking and the traditional cash method.
Popular Business Models for Car Rental Apps?
To invest in car rental app development, you’ll need to hire an experienced team of developers who can effectively implement business models that will help you earn more from ride-share apps in the USA. There are only two business models commonly used to ensure the car rental service runs smoothly and efficiently.
Commission Based
With this business model, you can easy money in two ways. First buy a car and list it on your app that allows users to rent it by the hour. A small fee from each rental will go to the app developers.
Next, you can lease the car to a driver who handles all user bookings and provides rides around the city. Companies like Turo use this approach
Car Fleet of Their Own
This model is typically used by well-established businesses. It requires a significant investment to buy cars under the company’s name and assign drivers to them. Users will book these cars through your app for their transportation needs.
As the company owner, you’ll earn the base fare paid by users. You can pay drivers either monthly or based on the number of trips they complete each month, week, or day. Hertz is a well-known example of a company using this type of car rental service app.
Key Features of a Car Rental Mobile App
Like other apps on the market, car rental apps offer a variety of features. These features can be grouped into three main categories.
Features for Customer
Car rental apps also come with various unique features like other apps. The app features were added to improve the customer experience and make using the app more enjoyable.
Easy Login
Apps typically let you sign up using your phone number or email and a password. But now, you can also log in using your social media accounts and the app will automatically pull your information from there.
Choose Your Car
One of the best features is picking the type of car you want. Most car rental apps offer three choices: hatchbacks for budget travel, sedans for a more premium experience, and SUVs for when you have more passengers.
Schedule Your Ride
You can schedule rides whenever you like, but it depends on car availability. If a car is available, the app will connect you with the host automatically.
Manage Your Bookings
Managing your bookings is easy with car rental apps. You can change or cancel your trips anytime. This offers you complete control over your plans.
Cost Estimate
This feature is very popular with users because it shows the estimated fare for your ride before you check car availability. Knowing the fare in advance helps users choose your service more easily.
Integrating Google Maps or other navigation services is crucial. It helps users find their car easily and makes the trip more efficient for both drivers and users. A good app development company can ensure seamless navigation integration.
Multiple Payment Options
The app should offer various payment methods since not all customers use the same payment options. Some might prefer cash, others might use UPI, credit/debit cards, or net banking.
Doorstep Delivery
This feature is available for both self-drive and cab rentals. For cabs, the pickup and drop-off are usually done right at your doorstep. For self-drive rentals, the car will be delivered to your chosen location by the rental service.
Referral Rewards
Getting rewards for referring the app to others is a great marketing strategy. When users recommend the app to someone else both the referrer and the new user receive a bonus or discount on their next rides.
Push Notifications
This feature sends important updates from the app in an engaging way. Well-designed push notifications can help attract more users to your app.
Features for Driver/Host
Quick Check and Accept Requests
After finishing a trip, drivers can immediately get new ride requests from nearby customers. They can choose to accept or decline these requests, so there are no delays.
Trip Detail
When a driver accepts your ride request, the app will share all your details with them, including your name, location, destination address and chosen payment method.
Easy Login
Hosts and drivers can also log in to the app using their phone number or email and password. To ensure smooth logins you need to use top-notch car rental software development tools.
Driver Dashboard
This feature is crucial for drivers. A good dashboard shows all the important information on one screen which makes it easier for drivers to manage their tasks.
Earnings Log
The app should have a detailed earnings log for drivers. This feature should break down the fare so drivers can clearly see how much they’ve earned.
Driver apps should also have good navigation features. This helps drivers save time and provide better service to their customers.
Features for Admin
Managing the Fleet
This feature helps you manage all your fleet’s activities more efficiently.
Handling Fares
This feature lets you control the fare based on factors such as weather, driver availability and special occasion and special occasions.
Reviewing Income
As the owner or admin, you need to track your app’s income. This feature helps you review and analyse the revenue your company has earned from serving users.
What to Consider When Creating a Rental Mobile App Development
Bookings Management
Car rental apps should let users manage their bookings by confirming when they need the car. This helps keep things clear and track upcoming appointments.
User Authentication
The app should verify all users who want to use the services. It should carefully record their personal details, ID proof and contact information.
Service and Maintenance
The app should include a brief guide on how to maintain the car. This keeps users informed about car safety and helps build trust between the service provider and the user.
CRM (Customer Relationship Management)
A well-set-up CRM system helps you send emails, newsletters, discount coupons and other promotions to your customers. This helps you build strong and long-lasting relationships with them.
Safety and Security
Your on-demand car rental app should follow government rules and ensure user safety. Some apps include roadside assistance, so users can get help in an emergency. However, adding strong security features may increase the cost of developing your app.
Team Structure Needed for Developing a Car Rental App
To succeed in the car rental industry, hire top-notch car rental app development services from eBizneeds. They’ll provide feature rich product at a good price and offer support.
When investing in app development, consider different factors and hire a team of skilled developers to handle every part of the app. Good teamwork among the development teams is essential for the best results. Here are some common team structures for rideshare app development.
- Project Manager
- UX/UI designer
- Back-end developer
- Q&A professionals.
- Android App developer
- Front-end Developer
- iOS app developers
Technology Stack Required for Developing a Car Rental App
For car rental app development, its crucial to pick the right technology that meets both business and user needs. Choosing the right technology helps the app perform well in a competitive market and also affects the development cost.
- Cloud Computing: Use services like Google Cloud, AWS, or Microsoft Azure.
- Real-Time Analytics: Consider tools like IBM, Big Data, Cisco, Hadoop, Spark, or Apple Flink.
- Database: Choose from HBase, Cassandra, MongoDB or Postgres.
- Payment Gateway: Options include PayPal, Braintree, or Stripe.
- SMS or Chat Verification: Services like Nexmo or Twilio can handle this.
- Mobile Operating System: Develop for Android and iOS.
- Push Notifications: Use Push.io.
Best Car Rental Apps to Inspire Your Own Creation
Hertz
Hertz is a well-known application in the car rental business with locations throughout the US and other countries. Their mobile app let you book a new rental and manage existing ones all in one place. If you’re a Hertz Gold Plus rewards member, you can also use the app to access benefits and manage your points.
Alamo Car Rental
Alamo is a top vehicle rental app that makes it easy to find right vehicle for your needs. The app gives you all the details you need about each vehicle including its mileage, how many people it can carry.
KCarz Self Drive
KCarz is a self-drive rental car app where you can easily book a car flight ticket and accommodation from one place. You can also read reviews from other users to learn more about renting vehicles and services.
Enterprise Car Rental
Enterprise Car Rental is another top app for renting and managing cars. It offers a smooth reservation process similar to booking in person. The app works on various platforms including iPhone, Android, iPod touch and Mac.
Cost Breakdown of Rental Car App Development
The cost of car rental app development depends on several factors such as features, graphics, developer’s location, their experience, app’s functionality and so on. The cost will go higher if you include advance features.
Choosing the right development team is also essential. Developers located in countries like UK & US are more expensive than hiring developers from India. Outsourcing to developers in India can be more cost-effective option.
Usually, developers charge by the hour for building a car rental app. Here’s breakdown of the hours needed for car rental app development.
| Factors | Hours |
| Admin panel development | 125 to 185 hours |
| Development of the user panel | 250 to 400 hours |
| Design of the app | 55 to 85 hours |
| APIs Development | 95 to 125 hours |
Note: – If you hire right app developers for creating a basic app then it may cost between $12,000 and $15,000. Once the app is launched, you can add extra features later as needed.
Conclusion
When thinking about the cost of car rental app development, it’s a good idea to hire a professional app development company. They have the skills and resources to build a high-quality app that meets your needs and also ensure your car rental business is successful and runs smoothly.
FAQs
The advanced features of a car rental app should include Operational Zone Setu, Cloud-Based System, Predictive Analysis, Real-time Reporting & Analytics, Multi-language/Multi-currency Support and many more.
Usually, car rental app development may cost between $12000-$20000 but the cost may go higher for more advance features.
The time for car rental app development depends on its complexity and other factors. Generally, a basic app can take around 5 to 6 months to develop while more complex apps may take up to a year.
Car rental can be a profitable business when planned and executed well with guidance from an experienced mobile app development company. The profit margin typically ranges from 5% to 10%, and the average daily car rental rate is around $100.
The typical revenue models for a car rental app are franchise model, peer-to-peer (P2P) Model, fleet ownership model.
Naveen Khanna is the CEO of eBizneeds, a company renowned for its bespoke web and mobile app development. By delivering high-end modern solutions all over the globe, Naveen takes pleasure in sharing his rich experiences and views on emerging technological trends. He has worked in many domains, from education, entertainment, banking, manufacturing, healthcare, and real estate, sharing rich experience in delivering innovative solutions.
