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Car rental services burgeoned with humble beginnings to meet customers’ needs for travel and vacation. Such a business-centric escalation introduced car rental solutions. These technology-powered solutions welcomed convenience and flexibility to people looking for vehicles regardless of location.
For instance, a traveler might need a car of their preference in an unknown location. Availability of such for-rent-vehicle has opened up the possibilities for convenience. As we speak, car rental businesses are going online seeking such a situation as a business opportunity. The reason is the chance to target a broad audience, reduce the allocation of new brick-and-mortar investments, and develop a not-so-region-specific business model.
However, their primary concern with such a car rental app idea is the devising through finalizing imperative features and functionalities. A similar consideration would be yours and that of a car rental business owner or an investment-centric business planner. Since this is a prerequisite for decision-making, you must comprehend our bifurcated online car booking app development guide.
Market Overview for Developing a Car Rental App
To develop a car rental app like Zipcar, decision-makers’ priority question focuses on the market overview. What is the CAGR of the car rental industry? How much is it projected to reach in the upcoming years? Is the investment worth the risk in the car rental industry? All the questions are invalid when investment is at stake.
Clearly, the car rental market size was valued at $107.5 bn in 2022. Subsequently, the industry expanded and welcomed an anticipation of $200.4 bn of market size in 2030. A calculative 8.1% of compound annual growth rate.
This number-centric estimation reflects how business tycoons opt to build apps like Getaway. Their development approach often inclines towards outsourcing to a car rental application development services provider. These can assist in finalizing features, the mandated user-centric intelligent features, the systematic development process, and the conclusive cost.
Panel-Centric Must-Have Car Rental App Features
After the market overview, another contemplation-worthy aspect is the inclusion of imperative features during on-demand app development. The aspects do not end here, as there is always the need to separate the panel based on functionality. For instance, the panel for users is always going to be distinctive from the driver’s panel. Features differentiation in both will be a part of the contemplation that needs to be discussed prior and built as per the project plan.
When it comes to car reservation app development, you must always remember to comprehend the features of three panels: customer, driver, and admin. Based on the distinction, the table mentioned below brings forth a straightforward idea of panel-focused features.
| Car Rental App Features | ||
| Customer Panel | Driver Host | Admin Panel |
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Advanced Features for Car Rental Apps
Heading onto the advanced features that change the functionalities of the car rental app. These are the features that assist car rental businesses in building apps that allow the workflow to automate and bring forth smooth functioning. For instance, if there is rain and the drivers are limited, the surge charges include the parameters, and the charges for the users are set as per availability. During the car rental application development process, advanced features enable the decision-makers to procure an app with features that alleviate the experience.
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Document Upload
With mobile app development services, car rental businesses can build a panel for drivers to upload their identification documents for verification. Since verification is a parameter much needed to approve the license in the car rental business, you must ensure that it is infused as a priority.
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In-Built Camera
Verification can be done with the PDFs available, but it can also be done with physical documents. Clicking and submitting the pictures is how easily you can present the option to the users for identity verification. With built-in cameras in car rental apps, users and drivers don’t have to change to camera apps and then come back to upload, and they can just have a straightforward way of doing so.
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Surge Charges
As we have mentioned above, surge charges are among the advanced features that can automate functioning. Prior to this, we mentioned rain, but there are many other reasons why car rental apps have to utilize the surge price. Among the many, special occasions, holidays, and working hours are reasons why car rental apps are required to manage dynamic pricing.
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Commission Board
The commission is the sole reason why independent car rental apps are advantaged from the car rental app. A portion of their ride is given to the car rental app, while the rest is money made by the car owners. This way, users often find the money segregation confusing. With an advanced feature like a commission board, you offer your car rental drivers a better way to comprehend the cost and their connected commission.
Use Cases of AI in Modern Car Rental Apps
As AI app development is taking over, car rental businesses are also finding it imperative for their future profit. The inclusion of cognitive technology like artificial intelligence is how industries are driving tangible business outcomes. For the car rental mobile app development, the use cases of AI are restructuring the app’s functionalities.
Business-centric applications of AI, like adjusting the pricing as per the market, providing the fleet efficiency report now and then, or presenting the risk mitigation possibilities, are imperative. Considering that your vision of building a robust car rental app is a priority, it is high time to apprehend the aligned use cases for better contemplation.
| Use Case | Description |
| Dynamic Pricing Adjustment | Analyzing real-time data like car demand, driver’s location, and rental availability to optimize pricing with AI. |
| Predictive Vehicle Maintenance | Monitoring car performance and predicting vehicle maintenance using AI-powered telematics. |
| Fleet Efficiency Optimization | Tracking, allocating, and optimizing fleet usage for maximum efficiency with AI-centric tools. |
| Personalized User-Centric Experience | Offering user-centric recommendations based on user preferences and past behavior with IoT-centric features. |
| Fraud and Risk Detection for Mitigation | Identifying anomalies in transactions and behaviors to prevent defrauding action using AI’s pattern recognition. |
| Intelligent Vehicle Inventory Management | Forecasting demand for administering suitable vehicles to the correct locations using AI-centric predictive analysis. |
| Context-Aware Conversational Chatbot | Handling car rental bookings, customer queries, and support 24/7 with AI-driven context-aware conversational chatbots. |
| GPS-Powered Route Optimization | Identifying the fastest, most straightforward, and most efficient routes with AI-integrated GPS tools. |
| User Feedback Sentiment Analysis | Analyzing customer reviews and feedback based on their sentiment affiliated to gauge satisfaction. |
| On-Road Driver Behavior Monitoring | Tracking cab and car driver’s driving patterns like speeding and braking to ensure responsible driving. |
Types of Car Rental App Monetization Methods
As you must have comprehended the features and use case options, you must familiarize yourself with the monetization methods. Since the profit-to-investment ratio holds value for decision-makers, monetization methods during the ride-sharing app development process to include in the app are not tricky. Such comprehension offers the car rental businesses a significant start.
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Rental Revenue
The primary purpose of the car rental app is to generate profits out of rental revenue. The calculations, the commissions, and the final rate drive the revenue game for the car rental businesses. Setting up systems interconnected with each other to enable the car rental business to generate fares out of the users builds the foundation of a car rental app.
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Advertisement
Advertisements, a method for promoting different brands, between the car rental app is another way for businesses to generate profits. These ads allow third-party businesses to bring potential clients through one app. To include this car rental app monetization method, you can hire a travel and transportation app development service provider.
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Subscription Plan
Rental cabs are the mode of transportation for people with no vehicle. They often choose the convenience of rental cars over public transport. That necessity is another way to monetize your car rental app. Building subscription plans matching the needs of such car rental app users enables a co-existent relationship.
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Car Rental Marketplace
Another monetization method for car rental apps is to build a marketplace associated with the car rental aspects. For instance, one might need a car-related tool. Visiting a different app for that would divert the audience. However, finding the tool in the same app as car rental enables the users to stay and invest. This is how businesses often generate new revenue streams.
On-Demand Car Rental App Development Process
As we proceed through the bifurcated guide, the next section worth reading ends up being the process of developing an app like Turo for car rentals. For instance, hiring a car rental app development company would be first, and later, the requirement would be defined. However, there is a flow that you must follow when contemplating the entire thing.
You must follow a systematic approach that assists you when it comes to rental apps. The pointers below can bring forth an order that is required on the decision-maker’s end.
- Define the car rental app requirements
- Hire a travel app development company
- Structure the UI/UX design
- Choosing MVP app development for feedback
- Develop the final source code
- Work on quality assurance
- Car rental app deployment and maintenance
With these steps, you can create an app like Getaround, and you can devise an app that matches all your requirements with your vision cleared.
Cost to Create a Car Rental App Based on Factors
Capital investment is among the concerns that decision-makers often have when contemplating to build an app like Avis. Such apps often don’t have specific figures as every car rental is distinctive based on the features, functionalities, API integrations, and the technology chosen for them. Since you are looking for a concrete figure, we must make you aware that it is only possible when asked for quotes from a specific app development company. However, if you want to comprehend the estimate, it is favorable to familiarize yourself with the factors affecting it.
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Custom Automotive Rental App Development Platform
The rental app development platform deviates the cost. For instance, a US-focused car rental company might choose iOS based on the market value. However, a globally-focused company would go for Android. The cost to build both is distinctive based on the tech stack required for it when it comes to car rental apps. Hence, the difference in cost for car rental apps arises.
| Development Platform (Simple App) | Duration | Car Rental App Development Cost |
| iOS App Development | 1000-1400 hours | $35,000 to $100,000 |
| Android App Development | 900-1300 hours | $30,000 to $80,000 |
| Cross Platform Development | 1100-1500 hours | $20,000 to $70,000 |
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Size of Mobile app for Car Rentals
The cost for vehicle rental app development also deviates in context to the features. For instance, a search bar with basic functionality would cost less than a search with categorization and advanced capabilities. This is how the car rental app extends in size and, therefore, creates the difference in cost based on the features and functionalities.
| Car Booking App Size | Ride-Sharing App Development Cost |
| Basic App | $30,000 to $55,000 |
| Medium App | $55,000 to $90,000 |
| Advanced App | $90,000+ |
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UI/UX Design
The UX/UI design is among the factors that affect the cost of developing a conclusive car rental app. You may ask how. To that, we must bring forward the concept of using templates and building layouts from scratch. The decision-makers can choose both options. However, one includes the ideation of the car rental business’s vision board, while the other simply works on using a pre-used template. The cost difference comes from efforts needed in the UI/UX design.
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Ride-Sharing App Development Technology
Coming back to technology, the choice of platform is still not limited to the choice of platform. Further decisions on the admin panel, cloud-based app development, DevOps or Agile methodology, or security features also affect the final app development cost. To comprehend this better, you must take a look at the table below.
| Technology/Component | Estimated Cost Range (USD) |
| Frontend Development | $10,000 – $30,000 |
| Backend Development | $15,000 – $40,000 |
| Admin Panel | $5,000 – $15,000 |
| Driver and Rider Apps | $20,000 – $50,000 |
| Real-time Features | $10,000 – $25,000 |
| Payment Integration | $5,000 – $15,000 |
| Push Notifications | $2,000 – $5,000 |
| Third-party APIs | $5,000 – $10,000 |
| Security Features | $5,000 – $10,000 |
| Testing & QA | $5,000 – $15,000 |
| Maintenance & Support | $10,000 – $20,000 |
| DevOps (CI/CD & Deployment) | $3,000 – $7,000 |
| Cloud Hosting | $5,000 – $10,000 |
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Hiring Model for Online Car Booking App Development
Last but not least, the hiring model of your car rental app project affects the conclusive cost. For instance, you can either hire a freelancer, build an in-house team, or compose a hybrid team in collaboration with a staffing team. Every decision that you make in context with the development team will bring forth a distinctive figure for you.
| Hiring Model | Car Rental Mobile App Development Cost |
| In-House Team | $120,000 – $250,000/year per team |
| Freelancers | $25 – $100/hour |
| Dedicated Team | $40,000 – $100,000/project |
| Outsourcing Agency | $50,000 – $200,000/project |
| Staff Augmentation | $40 – $150/hour |
| Offshore Development Team | $25 – $70/hour |
| Onshore Development Team | $70 – $150/hour |
| Hybrid Model | Depends on the vehicle rental app development team’s composition |
Read More: Cost to build an app like Expedia
Conclusive Car Rental App Development Cost
Now that we have comprehended the list of factors affecting the final cost of developing an app, it is time to bring forth a range of assistance. As mentioned above, providing a fixed figure for the travel app development cost is tricky. However, bringing forth a range is still a possibility.
The cost of building an app for car rental businesses ranges from the lowest of $30,000 to the highest of $150,000 or above based on the features, platform, and app size. Every decision that you make in the context of your car rental app further affects the conclusive cost.
Why Determine AppsChopper as Your Trusted Car Rental Mobile App Development Company?
As we comprehended the need to follow a systematic approach and clear apprehension of different aspects of car rental apps, we also found an app development company imperative. Why it is essential to hire a taxi app development company would be a question in your head. The explanation for such a doubt is that these app development companies have extensive experience in car rental apps.
Their existence in the car rental app development market has kept them updated and brought valuable insights to car rental businesses like yours. Among the many, at AppsChoppers, a proficient company with decades of experience, we have intricate market experience. With our 200+ expats and experts, we comprehend your project first and build a car rental app with your collaboration.
Frequently Asked Questions
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What are the benefits of having a car rental app for users and businesses?
Both the users and businesses have distinctive benefits. Users get a car rental with all the functionalities to travel safely, making it a cost-efficient solution. For businesses, a car rental app is a medium to target new audiences and keep existing users intact while generating revenue for their car rental business.
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How much does car rental app development costs?
As we have mentioned above, the exact figure for a car rental app is tricky to find. However, the cost to develop a car rental app like Zipcar ranges from $30,000 to $150,000 based on the car rental app’s features, functionalities, platform, and size.
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What are the must-have car rental app feature?
Including features like surge charges, commission board, log-in and profiles, GPS-tracking, payment methods, etc., is imperative when building a car rental app.
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What technologies are used to build car rental apps?
Frameworks like React Native or Flutter are prevalent for the front end due to their proficiency in building cross-platform applications with a single codebase. Relying on your professional team’s expertise and project prerequisites, consider utilizing Node.js, Python, or Ruby on the backend.
