Car Rental App Development Cost and Key Features

As more and more people turn to these services for easy transportation and convenience, the demand to rent cars has increased. Thus, investing in a car rental app develops an extremely lucrative business opportunity in the emerging market.

However, creating a successful car rental app will require planning and execution. The app must address the needs of both users and service providers and be user-friendly and efficient.

Mobile application development for the car rental industry has become a fantastic, user-friendly solution that has also helped raise an estimated billion dollars. Since the introduction of car rental services on mobile platforms, they have exploded like wildfire.

If you’re a rental owner looking for a way to shift your business online, on-demand car rental app development is the perfect solution.

We have put together a blog that will cover every aspect of developing a mobile app for car rental, from the size of the market to the app’s essential features and business models to the costs of building the app.

Car Rental Mobile Apps: What Are They?

The apps make it simpler for customers to reserve cars for their travel needs. You can book the rental car for up to 24 hours or more at a reasonable cost. The apps can also offer cars on an annual basis in certain situations. This means you can purchase a car for a minimum of six months. This is beneficial for those who commute regularly.

Because of the epidemic due to the pandemic, there is a massive demand for this software. Users also benefit from massive discounts, flexible schedules, pick-up and drop-off of cars on their doorstep, and car rental services. The app is available 24/7 and can be accessed anywhere. It is possible to gain a better understanding when you hire iOS programmers.

Business Models for Car Rental Applications

Car hire apps are becoming a standard today. The initial car rental application ideas were created at the start of the 20th century when just three vehicles were available to rent. Today, the company has grown worldwide and provides various kinds of services.
If you are planning to enter the on-demand car rental application developing market, it’s important to decide what solution you will use to address the customers’ requirements. These are the main kinds of these apps:

Self-Driven Service

In this instance, companies have made car rental apps to allow people to drive using vehicles. It is helpful for those with a driving permit but do not have a vehicle yet. Or something has happened to someone else’s vehicle, and they require an alternative vehicle for the job. This is a cost-effective alternative for clients who need an auto for short periods, don’t wish to keep the car, or require a vehicle for travel.

Car rental apps permit users to reserve trucks, vans, or other prestigious vehicles through the app and then collect them at the company’s car park. The customer is usually able to pay for the service or extend rental times or days by using an app on mobile. In the future, one can drop off the car at the desired location.

The most notable examples of mobile vehicle rental apps that are developed for this kind of development are:

  • Rental cars allow users to rent a vehicle in over 160 countries. More than five million people have downloaded it.
  • Europcar is an aggregator that lets customers hire a vehicle worldwide, select an ideal pick-up point, and download more than one million vehicles.
  • National is a service that provides coverage for more than 1,5K locations globally.

Peer-to-Peer Car Sharing

The car rental app has a business structure similar to the earlier model, but it differs in that customers rent cars not from private owners but rather from companies. This service may make your life easier on numerous occasions: you want to visit new locations, your car unexpectedly stopped working, you’d like to test out a model or brand, and so on. In addition, it can help reduce the number of traffic jams and parking issues.

If someone requires an automobile, they select a location and host or a particular vehicle and then agree on where they would like an owner to drop the car off.

One of the most prominent examples of car rental solutions include:

  • Turo is a leader in its field, boasting over four-star ratings and more than five million downloads and cars in the U.S., Canada, and the United Kingdom. It provides various search categories, such as filters by brand, location, or experience.
  • Getaround, on the other hand, provides the same experience as the previous application but also boasts the highest popularity and a large base. However, it comes with specific, stricter specifications for cars.

Cab Booking

This business model is one of the most well-known for developing apps for car rentals. These apps allow users to hire taxis to take a ride in real time or ahead of time. Furthermore, these apps often feature reviews and profiles of drivers, which can help users have a pleasant and personalized experience.

Car rental apps provide customers with user-friendly interactive maps of the available taxis that customers can choose from at the touch of a finger. We will look at some of the most popular examples of the development of software to rent cars:

  • Uber is a world-renowned company that operates in a niche market, covering more than 785 cities. Users can use Uber to take a ride-sharing service, taxi, or luxurious cab and choose from various payment options.
  • Lyft is another transportation leader operating throughout the U.S. and Canada. All you have to do is select an area, and the application will provide the right ride in seconds with a cost estimate.

How Car Rental Mobile Applications Work?

Here’s a detailed description of the steps that go into developing mobile apps for rental cars:

Request a Cab

Customers open the app to book a car and then enter their location. They can make a reservation for the future or book a taxi in a flash.

Ride Accept

The app shows the taxis available near the passenger’s location. It assigns an automatic driver to the passenger’s request and sends the driver an alert to decide whether or not to accept the request. If the app does not accept the request, it will assign the trip to an available driver.

Traveling

If a driver agrees to the journey, the driver and passenger begin the journey. Certain apps require passengers to verify their identity using their OTP (One-Time Password), which is sent to their mobile phone. Users can monitor how they progress on their journey via the app’s GPS tracking feature.

Total Cost Display

After the trip is completed and the ride is over, the app for rental cars will notify the user of the total cost. The cost of the entire excursion is determined based on various factors like the distance traveled and the location, demand, high-demand hours, type of vehicle, and the weather conditions.

Final Payment

Customers pay for the final installment through the app by using their preferred payment method. They can also provide reviews for the service and also rate the driver. Drivers can also give passengers feedback, thereby improving service quality and accountability inside the vehicle rental app’s community.

Reasons for Developing a Car Rental Application

Car rental companies are growing globally as the tourism and travel industry expands.
Large investors are funneling money towards the development of technology in this area. AI vehicles that drive themselves are an interesting advancement for the near future.

Many people find the cost of maintaining or owning an automobile to be too expensive. Car rental applications let you rent a vehicle for a couple of days without worrying about maintenance or any other expenses.

It could be calculated based on hours spent or the distance traveled, which makes it easier for many.

Small and medium-sized companies are also leveraging the benefits of car rental app development services, meaning this market is many more than the big players.

Thus, the growth can be attributable to the need for efficient modes of transportation.

  • The market size is predicted to be $144.21 billion in 2027, with a 6.7% CAGR annual rate.
  • According to the reports, the average revenue per user (ARPU) should be about $200.37.
  • In 2023, the revenue of 99.54 billion will grow by 4.6%, reaching 119.40 billion by 2027.
  • The Global Car Rental Software Market was worth 101.73 billion dollars in 2000 and is expected to reach 188.93 billion dollars in 2027, growing at an annual rate of 9.25%.
  • It’s predicted that 70% of all sales revenues will come from online transactions by 2028.

Due to these positive economic developments, increasing consumer demand, and rising demand for car rentals, investing in car rental app development is a wise choice.

Advanced Features for Car Rental Mobile Applications

The capabilities of a car hire application can appear expansive at first; however, each feature does not have the same importance. When you begin the rental app development process, consider integrating the most essential features and then gradually increase the capabilities of your app by incorporating more features and updates.

1. Interactive Statistics

The app for renting cars gives access to the base price and additional information, such as fixed rates, time rates, and prices for surges and distances. Thus, you can gain an understanding of the company’s operations.

2. Zone Set-Up Is Operational

A car rental company is proficient in the field and has the highest number of customers who use its services. It can create promotional services in the region to draw customers in and enable them to benefit from the services provided by car rental providers.

3. User’s Behavior Tracking

The app keeps track of bookings made and canceled by users. It also allows rental service providers access to the types of reservations made by customers. It assists them in assigning cars and drivers for each customer in accordance with their behavior and preferences.

4. Cost Calculator

For those who wish to lease a vehicle and drive it to an outstation or are required to rent it for a particular amount of time, the cost calculator can help users get an idea of what it will cost to rent the car for the period they mentioned. It allows them to examine the cost of the services provided by various apps and then book the most cost-effective one for them.

5. Push Notification

Push notifications allow app creators to update their customers with their reservations and information about the car used for their service. Additionally, they are informed about the final cost of the services. Users can also receive information about any promotions or offers offered by the app through push notifications.

6. In-App Calls

App users should be able to make calls to drivers or service providers without being charged via the app. This will allow them to remain within the app without having to navigate away for phone calls or contacts.

7. Multiple Bookings

In this mode, users can make as many bookings as they like simultaneously. The applications also permit users to book reservations for several locations.

8. Floating Window

This assists users in making an easy booking for a vehicle. Their location is saved, and they are able to quickly book a car between two destinations that are frequent for them on a daily routine.

10. Robust Fleet Tracking

A device is placed in the vehicle that monitors its position and transmits information about its location to the app creators from the rental car company.

11. In-App Document Scanner

While many car rental agencies in the United States require clients to show the ID documents required to avail of their services, it can be beneficial for customers to have the option of a built-in scanner for documents in the app.

12. Loyalty Programs

Give an extra benefit to your loyal customers. Provide loyalty programs, such as earning rewards that can lead to free services based on accumulating points.

13. Panic Button

It is important to maintain a calm and professional atmosphere with your drivers. The app needs to include a panic button. It can help passengers or the user alert the driver if they suspect something is wrong in the vehicle.

14. Assign Drivers

This feature allows users to arrange for the driver and car directly from the app. You can choose a person who is their driver after having read their ratings and reviews within the app. This service is usually used for those looking to arrange a long-term ride. Users can also ask for information about the driver’s gender and age, as well as their rating and experience.

15. Payment Gateway

Payments can be a source of worry if there’s no transparency and the cost is different from the one shown on the screen while making the reservation. With a number of payment options readily available, including debit and credit card transactions online, e-wallets, and UPI, it is simple for users to book a reservation without difficulty.

16. GPS Tracking

GPS tracking is one of the most important features that not only ensure security but also assist the driver in locating the client. This makes the company run effortlessly. Users can view the exact location of the driver and assist him in finding the pick-up point with ease. Additionally, the location of the car may be shared with family members, friends, or an administrator to ensure security.

17. Offers

To get customers to sign up for an appointment through your app for car rental, you must offer appealing deals that they should not miss without cost. Regular customers will appreciate discounts on the services they use.

18. Communication and Notification

The apps ensure transparency through timely notification of every detail to users. Booking information will be shared with them via a message. Information about the car and its cost will be provided to them before delivery.

19. Email and Message

While the information about the service is communicated via the push notification system, these should be sent out to users through their email addresses or in a text message on their mobile devices. This allows them to save the information for later if required.

20. In-App Videos

This feature lets users make video calls from the application itself.

21. Custom Packages

This feature is specifically designed for loyal and frequent customers. If they frequently use an auto rental service, they can select one of the packages customized by the application.

22. Real-Time Analytics & Statistics

This lets the admin know the number of cars that were rented at any given moment and the details, including the latest location updates for every car.

23. In-App Call Contact Masking

This ensures security for users, allowing them to communicate with drivers through the app without revealing their numbers.

24. In-App Document Upload

With this feature, the vehicle owner can verify and check documents like the license and papers before renting the car. In addition, the customer can upload the necessary documents for renting the vehicle.

25. CRM Integration

The management of customer relationships is an important characteristic of every app. It allows customers to connect to the application’s support staff and respond to their concerns at any time.

Steps to Develop a Car Rental Application

The development of a car rental app isn’t easy. It requires careful steps and a foolproof strategy, starting with feasibility before constructing prototypes and wireframes. The whole taxi booking app development process is a series of stages and testing before it can be an initial beta version that is rolled out first. These are essential steps to creating a custom mobile rental car application.

Step 1. Research

The first step in deciding to create the app for renting cars is conducting market research. This lets you identify your ideal customers, competitors, and distinctive value propositions. It is also important to determine the functionalities and features of a car rental application, such as booking, secure payment locations, GPS ratings, and so on. The research could also include estimated cost and time for development. You can engage a car rental application development company to talk with you and set the budget.

Step 2. Design

After a thorough investigation has been conducted, The following step will be to design an appealing and user-friendly design for an app that allows you to rent cars. Your tech partner should follow the most effective UI/UX design practices to complete this task. In this stage, it is essential to consider the branding and image of your application. This includes, for instance, choosing your company’s logo, color scheme, typography, and the like. Also, be prepared for prototypes and wireframes verifying the application’s functionality.

Step 3. Development

A mobile application development company that you employ will choose the best tech stack and platform to develop your mobile application for car rental. There are also hybrid, native, or web options. In this phase, you are able to witness the implementation of the functions and features of the car rental application. Be prepared for the most efficient methods and standards, as well as integration with APIs and third-party services (like maps, payment gateways, and analytics). This could also consist of debugging and testing to ensure the quality and efficiency of the application.

Step 4. Deployment

After developing and designing the application, the next step would be to launch the car rental app on websites or app stores. It is vital to follow the rules and guidelines for each platform, such as Apple Store and Google Play. In this case, getting the required authorizations and licenses for apps that provide car rentals, such as security certificates. Privacy policies and privacy policies and terms and conditions are vital. The deployment process also lets you track ratings and feedback from customers and the app stores.

Step 5. Support, Maintenance, and Marketing

In the final stage of your car rental application creation process, ensuring that you have continuous support and maintenance of your app is important. Reputable mobile app development companies provide post-development assistance, for example, fixing bugs, including more recent features, re-updating software patches for security, and more. Marketing can be a different part of this process, and you could employ an online marketing company to help support your app. They can help you improve your application for SEO or ASO to improve your app’s visibility and position in the app stores and the web search engines.

Problems That Car Rental Mobile Applications Can Solve

Car rental faces numerous problems, but some could be dealt with by digitizing the core parts of your business using a specifically designed app for car rentals. Check out if these typical problems are yours. If you are able to identify a few of them, we’d love to talk about how we can assist you in creating a specialized car rental service.

Manual Bookings

Certain rental car services rely on manual processes, which include phone calls, paperwork, and face-to-face interactions. This isn’t how modern businesses function. Digital applications streamline the processes to manage and eliminate delays, paperwork, and mistakes. A specific app streamlines the booking process so each of your clients can handle the process quickly and efficiently.

Time-Consuming Check-In and Check-Out

Traditional check-in and checkout processes in car rental require lengthy paperwork, verification, and physical examinations. Software development for car rental can simplify the process by allowing customers to complete the necessary paperwork online, upload the required documents, and conduct virtual inspections while reducing wait durations.

Limited Availability of Vehicles

It is often difficult for customers to locate a car suitable for their needs at particular times of peak season or in certain places. A specific rental application for cars can give customers real-time details on vehicle availability, aiding them in finding and reserving their preferred cars ahead of time.

Limited Customer Support

Some customers may be unable to reach support from customer service or get prompt help when faced with problems with their vehicle. Rent-a-car apps can have features like in-app chat assistance, email support, and a telephone number to guarantee rapid and effective customer support.

Lack of Personalization

Traditional car rental companies often lack personalization and reward programs for customers. An app dedicated to customers can include rewards programs, loyalty programs, and customized offers according to customers’ preferences and rental histories, encouraging customer satisfaction and loyalty.

Limited Access to Data

Without a specifically designed app, the customers you serve may not be aware of rentals, available vehicle pricing, policies, and locations. By creating a car rental application similar to Hertz, you can give your customers complete and up-to-date information that allows them to make informed choices and easily compare different options.

Unclear Pricing and Hidden Costs

Transparent pricing is essential for the car rental business. However, traditional rental methods can be confusing for customers concerned about hidden charges or a confusing pricing structure. A specific app will help you present the information you need in a simple and concise way (including rent rates, additional costs, insurance options, and fuel policy). Transparency builds confidence and prevents unwelcome surprises for your customers.

Complicated Payment Systems

The traditional payment method for car rental typically requires cash and credit card payments at rental locations. A specific app could integrate security-grade credit card processing systems that allow customers to pay online easily. This reduces the requirement for physical transactions and improves the overall renting experience.

Vehicle Return Hassles

Returning a car rental can be a hassle, requiring manually inspected vehicles, paper, and coordination with rental personnel. Specific software for car rentals could simplify the process by permitting customers to submit online check-in forms or upload images and fill out the necessary paperwork electronically. This would be an advantage for both the rental companies and customers.

Cost of Developing a Car Rental Application

The cost of building an app for car rentals will vary based on various factors, such as the features, design, and the development team’s geographical location. The cost typically ranges between $60,000 and $150,000. The estimate includes essential functions like user registration, booking and search management, and integration of payment gateways and GPS services, all contributing to the overall cost.

In addition, the development costs for apps will be determined by whether you decide to develop applications for iOS, Android, or both and the degree of customization you want. Other aspects to consider are periodic maintenance and updates following the launch, which can impact the total budget. For a more precise estimate, it’s recommended to talk to a car rental app development company who can customize the cost to the specific requirements of your project.

The Key Takeaway

Smartphones have changed every aspect of our lives, and the car industry is no exception. Apps for car rental are becoming more popular with owners and users alike.
The apps allow businesses to offer their services, remain in touch with their clients, and give them customized promotions and offers. The app for renting cars is a win-win for all parties involved.

We hope we’ve provided all the information you need to build your app for car rental starting from scratch.

Making a car rental app is a great idea for your company because it allows you to respond to customers’ changing demands, create solid market footprints, and deliver success.

 

Frequently Asked Questions

Car rental apps earn money from commissions on vehicles, booking commissions, platform commissions, and other sources.

The time required to create an app for car rental is contingent on the level of complexity and the features it offers. If your app's features are complicated, it can take roughly 6-10 months; however, if you require an MVP for your car rental company and want it in 2-3 months.

Yes, we can develop an API for renting cars for your business that will meet all of your requirements. We provide various automotive app development solutions to help you expand your company. If you have any questions, contact us at any time.

The most important regulations and legal issues include:
  • Any required insurance protection,
  • Adherence to federal and regional laws, and
  • Tax laws.
In addition, you should make user agreements, privacy policies and conditions, and terms that protect both your clients and your business.

Effective marketing is essential to ensuring that your app for renting cars succeeds. Creating a user-friendly, visually appealing website for your application, along with providing rewards such as promotions and referral programs, is a great way of attracting and maintaining customers.