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 Potential Disruption to Car Rental Industry

Will you rent out your car to tourists?
 
Yes [ 10 ] ** [17.54%]
No [ 47 ] ** [82.46%]
Total Votes: 57
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TStongkualongan
post Aug 7 2017, 06:23 PM

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QUOTE(rcracer @ Aug 6 2017, 09:23 PM)
You will lose out to long time players , heard this like 5 years ago already

These old old otai make so much money liao the cars to them is like consumable ,
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really need massive effort to educate the market .. really respect how Airbnb and Uber manage to shift consumer's mindset and strong arm governments to accommodate them.



mushigen
post Aug 8 2017, 08:35 AM

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QUOTE(spacelion @ Aug 7 2017, 09:07 AM)
I'd like to point out that Flexidrive insurance will be voided if AXA finds out you let other people drive your car - it's car insurance and only applies to the policy holder ya
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When you wrote "let other people drive your car", you are referring to renting out, and not lending the car to friends or relatives, right?
demetry
post Aug 8 2017, 11:22 AM

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if the "tourist" rented ur car, carrying drugs over the border and get caught you are in boiling wok
Mavik
post Aug 8 2017, 11:27 AM

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QUOTE(tongkualongan @ Aug 3 2017, 02:31 PM)
Dear All,

I currently run a tour business to get International guests to travel to Malaysia,

Among our potential guests, some will inquire about renting a car instead.
So I am toying the idea now of using sharing economy concept to rent out private owned cars to tourists , ( like Uber but to rent out cars )

Of course , the challenge i foresee are the insurance (car theft ) , wear and tear etc

To resolve this, I am thinking :

1) Day insurance that covers accidents/theft that car owners can buy
2) Device that Tracks the car location, acceleration/deceleration to ascertain wear and tear and potential theft
3) build a community of respect (like airbnb) between car owners and car renters  , to instill trust and respect

Will you rent out your cars if the above are executed properly?

let's say you can get 100 - 300 myr a day depending on car model.
Appreciate your input.

Longan.
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1) The rental company has to bourne the cost of the day insurance which needs to state how much is in excess or what sort of full coverage. At the end of the day, if you want to make this into a business, you need to have ways and process to ensure that the person renting out the car feels comfortable. The claims process as well as the workshops need to be managed on your end rather than the guy who rents the car. Same goes for AirBnB.
2) This is definitely a must, for car rental companies they are already outfitted with GPS tracking devices for their entire fleet. If you want to deal with something in the local market, search for Katsana which supplies this.
3) A community of respect means a proper and transparent rating system for both parties. Operationally taxing but needs to be done properly.

On top of that the leasing agreement has to be solid and tight which protects both the rentee and the renter.
Ginny88
post Aug 8 2017, 12:25 PM

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QUOTE(demetry @ Aug 8 2017, 11:22 AM)
if the "tourist" rented ur car, carrying drugs over the border and get caught you are in boiling wok
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If you rented out your car in good faith you should not be in trouble.


SUSbf1119
post Aug 20 2017, 11:19 PM

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QUOTE(tongkualongan @ Aug 7 2017, 06:23 PM)
really need massive effort to educate the market .. really respect how Airbnb and Uber manage to shift consumer's mindset and strong arm governments to accommodate them.
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House and car very big differences there. Buy a subsales house is less worries than a used car.
SUSbf1119
post Aug 20 2017, 11:21 PM

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QUOTE(tongkualongan @ Aug 3 2017, 03:29 PM)
thanks again ,just food for thought,

if we were to rewind 5 years back , would you sit in a car with a stranger ? and you trust the stranger to fetch you to your destination ? smile.gif

Longan
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Thats bcos 5yrs back smartphone not so normal and tech not there yet.
Ginny88
post Aug 21 2017, 04:52 PM

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QUOTE(khanninah @ Aug 19 2017, 10:52 PM)
duh your scenario describes taxis perfectly.
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Not the same to compare taxis and Grab/Uber. One is a licensed people carrier by licensed drivers, the other is private cars driven by any member of the public.


TStongkualongan
post Aug 26 2017, 04:29 PM

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QUOTE(Mavik @ Aug 7 2017, 09:27 PM)
1) The rental company has to bourne the cost of the day insurance which needs to state how much is in excess or what sort of full coverage. At the end of the day, if you want to make this into a business, you need to have ways and process to ensure that the person renting out the car feels comfortable. The claims process as well as the workshops need to be managed on your end rather than the guy who rents the car. Same goes for AirBnB.
2) This is definitely a must, for car rental companies they are already outfitted with GPS tracking devices for their entire fleet. If you want to deal with something in the local market, search for Katsana which supplies this.
3) A community of respect means a proper and transparent rating system for both parties. Operationally taxing but needs to be done properly.

On top of that the leasing agreement has to be solid and tight which protects both the rentee and the renter.
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Thanks Mavik, objective and to the point, I agree with your points and suggestions. Are you a veteran in this industry?

Tuvo is doing this p2p car sharing in the US and the valuation is about a few hundred million USD , so to a certain extent, this is a proven business model. of course , US market is huge and more forward looking and receptive, however, I am seriously thinking of launching this in Malaysia, I think it is a problem worth tackling and industry may just be ripe for disruption.

Need to have a really strong , forward looking insurance partner in this , the start could be really operationally taxing as well about all these claims stuff and queries, but after sometime, operation should be stream lined and automated with the aid of digital tech and process improvement.


There are some invisible revenue channel based on this model as well in phase 2 or phase 3 of this project smile.gif

end of my brain vomit for today smile.gif
zenix
post Aug 27 2017, 11:41 AM

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There are already many people doing such thing on mudah

Just use them
TStongkualongan
post Aug 28 2017, 12:37 AM

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QUOTE(zenix @ Aug 26 2017, 09:41 PM)
There are already many people doing such thing on mudah

Just use them
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Hey Zenix,

thanks for the info, didn't know this until you mentioned, it is a good data point for me. Further confirmed that it is a viable business model . there are 3600 listing over there of which 2598 are "companies" and 2 private .. and i doubt those are actual "companies " smile.gif

which leads me to believe that there are lots of pockets of "informal" car renting going on, much like the hay day before uber/grab , we have those 'Ba wong cheh ', illegal taxi drivers.. then come Uber/Grab and the rest , as you know, are history.

It may be opportune now to formalize this car renting market,, bringing them on board to a consolidated platform, with the usual UX stuff but I have thought of an even more elegant solution to this rather than just another car rental directory listing.( how to do this differently and better )

any other items that I have been blind sided? thanks!

Longan
TStongkualongan
post Aug 28 2017, 03:28 PM

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QUOTE(Joe Kreutz @ Aug 27 2017, 10:54 PM)
i dont want to burst your bubble.. but people are already doing that here in malaysia.

check https://moovby.com/

its a start up company who started last year if im not mistaken.
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Thanks Joe for pointing that out , I am aware of their presence , have done research about them as well , their tech is very strong ( ceo is former grab android developer ) but I think they lack execution strategy . Their coo also left recently and their cars are not p2p although they brand it as so .

The pie is big enough and may let them to educate the market first and shall come in a tad bit later smile.gif

Longan
roocarroll
post Aug 28 2017, 06:06 PM

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How do you cover issues like punctures or minor damage to the vehicle? What if a wing mirror gets knocked off by a passing motorbike?
TStongkualongan
post Aug 29 2017, 09:31 AM

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QUOTE(Joe Kreutz @ Aug 28 2017, 02:56 AM)
That is very interesting. The pie is big enough, yes.

For Moovby I think they are lacking funding, basically if you don’t particularly search for it, it won’t show. It has a very limited exposure.
Recently their CEO went on government’s competition to ask for funding. But im not sure if they got it.

On your part. How do you know the COO already left the company?

As pointed out by previous forumer, the idea is old already.  Turo in the US was founded in 2009. Nowadays, theres a few other start up companies with similar idea like getaround and driveshare.

In Singapore there is Drive.sg. they are already quite big and recently got funded by Malaysian investment company. So it’s a matter of time before it reaches Malaysia. Although they’re not p2p.
Actually, I was thinking about doing this myself before too.

if you are serious about doing it. you need massive or big money to fund you for exposure and to fend off competitors like Drive.sg
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oh, how do I know the COO left the company? smile.gif Just need to do a bit of google investigative work laugh.gif

Former COO linkedin profile --> Nadzri Linkedin

yes, agreed idea is not new , hence , the business model is viable. Personally, prefer idea that has been tested elsewhere rather than a brand new idea where it is much riskier smile.gif


chicken and egg about funding , I have tech capability so will fund myself and try out a small target audience first , and then shall raise funding in Sg and see how it goes. Execution is key as well. The good thing is now , there is still not a consolidated platform,( market is very fragmented ) . Can study how Alibaba vs Ebay back in those early days on how David can actually manovere and throw Goliath off balance..


TStongkualongan
post Aug 29 2017, 09:38 AM

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QUOTE(roocarroll @ Aug 28 2017, 04:06 AM)
How do you cover issues like punctures or minor damage to the vehicle? What if a wing mirror gets knocked off by a passing motorbike?
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how are we currently settling this now with our own car? biggrin.gif
roocarroll
post Aug 29 2017, 10:12 AM

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QUOTE(tongkualongan @ Aug 29 2017, 09:38 AM)
how are we currently settling this now with our own car?  biggrin.gif
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Is the owner of the car expected to bare the risk while the car is hired out to another person?
khk1987
post Aug 29 2017, 11:56 AM

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Potential legal/penalty issues have to be clear between hirers and car owner in the event of:
- Accident
- Stolen vehicle
- Damaged/lost vehicle parts
- Summons

Third party involvement to make it work:
- Licensed auditor from insurance company? (car checkup for usability before & after rental)
- Lawyer (to form contract between company, owner & hirer in event of tit and tat)
- Government intervention/approval if the business declared as commercial.

All these is to gain confidence of the vehicle owner to rent out.

Deposit/collateral, how much hirer willing to give to subscribe?

Other concerns:
- Risk of car key duplicated. -> free install/swap double locking system every successful rental?
- Damage/Losses cost more than deposit who will bear it? -> get old 2nd hand car to reduce potential cost?
- Fuel usage. -> Refilled to full
- Promotion? -> Free carwash/polish, fuel coupon, tinting, etc.
- Hirer & relatives background check for blacklisting?
Ginny88
post Aug 29 2017, 12:15 PM

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QUOTE(roocarroll @ Aug 29 2017, 10:12 AM)
Is the owner of the car expected to bare the risk while the car is hired out to another person?
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I suppose if the damage exceeds the deposit insurance should cover the damage. But hidden costs like loss of use of vehicle while it is being repaired should be worked out between the owner and the company. The owner should also bear some risk as he is a business partner. The only risk-free way to make money is bank F.D.


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