Car Rental Application: Types, Features, Cost & Development Process

In the last few years, the car rental app market has grown significantly, with around 73% generated through sales that will hit $116 billion and catch up to a new height by 2028.

Traditionally, car rental businesses faced many challenges, such as keeping up with trending technologies, a continued shortage of cars, increased competition, and a need for brand awareness.

Such issues highlighted the need for a revolutionary solution, like car rental application development.

If you’re reading this blog, you want to learn how to build a car rental app. If so, then you’re in the right place.

This article will uncover reasons you should invest in car rental mobile app development, what type of app you can build in this industry, the step-by-step process of developing one, associated costs, and even how you can generate revenue from this app and more!

What is a Car Rental App?

A car rental application simplifies the process of renting a car, allowing users to search for available vehicles, select pick-up locations and times, choose a car type, and manage their booking.

The app helps rental businesses to manage their fleet, track reservations, and handle customer requests. Features like real-time car availability, GPS tracking, and nearby locations enhance convenience for customers.

The taxi app development benefits customers and rental companies, providing a more efficient and convenient rental experience.

How Does Car Rental App Work?

To use the vehicle rental app, customers need to download it and create an account with the rental company.

After creating the account, customers can search for available cars by location, date, and time and choose the vehicle that suits their requirements.

Users can make a reservation directly from the app, choose pick-up and drop-off locations, and pay for the rental using the app’s secure payment system.

Moreover, customers can also look for available cars, check pricing, make reservations, and get support from the rental company.

The users can also manage the rental, including extending the rental period, reporting any issues with the car, and accessing support and assistance from the rental company.

In short, car rental mobile applications make the entire car booking process more convenient and efficient for customers while also providing rental businesses a way to serve their customers better and increase revenue.

Why Should You Invest in Car Rental Application Development?

The on-demand automobile rental sector is one of the most prominent industries, and car rental plays an important role.

Aside from being a large industry, the automobile rental industry is always growing in response to user commuting demands, which are a part of everyone's daily lives and contribute to expansion.

Car rental applications are being developed by small and medium-sized businesses as well as large corporations.

Let's look at some global automobile rental market statistics.

• Revenue is estimated to grow at an annual rate of 18.5% (CAGR 2020-2024), with a projected market volume of US$105,285 million by 2024.
  
  
• By 2027, the global market is estimated to reach $144.21 billion, with a CAGR of approximately 6.7%.
  
  
• User penetration is 3.6% in 2020 and is predicted to reach 7.1% by 2024.
  
  
• The average revenue per user (ARPU) is estimated to be $200.37.
  
  
• The revenue from car rentals is expected to reach $99.54 billion in 2023.
  
  
• By 2027, the market will have a value of US $119.40 billion, representing a 4.65% annual growth rate.
  
  
• By 2028, the car rental business is expected to generate 73% of total income from online sales.

While exploring the market, you will come across more facts that show why you should invest in vehicle rental apps.

Must Read: 20 Most Profitable Automotive Business Ideas

Popular Car Rental Applications in the Market

Online car booking apps have transformed the traditional car rental industry and given people more options. Below are some of the most popular car rental mobile apps that are widely used today:

• Uber is a ride-sharing app that lets you rent a car or book a taxi using your mobile device.
  
  
• Turo is a peer-to-peer car rental application that allows users to rent out their vehicles to others.
  
  
• Zipcar is a car-sharing app that offers vehicle rental services by the hour or day, making it ideal for short excursions.
  
  
• Car2Go is a vehicle-sharing business that allows users to borrow a car for short journeys around the city easily.
  
  
• Avis is a well-known automobile rental firm that provides rental services via a user-friendly smartphone app.
  
  
• Enterprise Rent-A-Car is a car rental app that offers a simple and convenient rental experience via its mobile app.
  
  
• Budget Rent-A-automobile is an automobile rental company that provides an effective and convenient rental experience via its mobile app.

These top rental car apps have not only made it easier to rent a car, but they have also created new options for individuals and businesses to share their vehicles and earn extra money.

It's not surprising that mobile applications have become such a popular alternative for auto rentals, given their simplicity and accessibility.

Related Read: Cost To Develop On-demand Truck Rental App Like Bungii in 2024

Different Types of Car Rental Applications

Before we delve into how you can build a car rental app, it’s important to know what different types of car rental applications are available in the market.

Here are some most popular ones:

1. Self-Driven Car Rentals

The self-driven car rentals category of vehicle rental apps includes peer-to-peer, traditional, and ride-sharing rentals. In these car-sharing apps, users have complete control over the ride until it’s finished, dropping the passenger to the desired location.

2. Corporate Car Rentals

Corporate car rentals, designed for corporate businesses and their employees, emerge with features that suit corporate needs, like an uninterrupted booking process for regular business travel, flexible corporate rates, and seamless integration with corporate expense management tools.

3. Local Car Rentals

As the name suggests, these top rental car apps are created to meet the requirements for short-term car rental demands in user’s local areas, including various valuable features customized for short trips, like hourly or daily rental rates, streamlined integration with local car-sharing services for extra flexibility, and convenient locations (pick-up and drop-off) in the local area.

4. Outstation Car Rentals

Travelers who want to tour outside their local city would find such car rental applications for an easy travel experience. This type of app includes features such as one-way rentals, multi-day rental options, or collaborations with outstation service providers.

5. Traditional Car Rental App

In this rental app, the user can avail of the service for a specified period, by hours or days. With the app’s help, users can search for every car, make reservations, and pay for their rentals.

6. Car-Sharing App

Car-sharing apps allow users to rent cars in hours or minutes. These apps are popular in urban areas where car ownership is rare. Customers can rent, book, and ride the vehicle at their time of need and then can again park and lock when they are done.

7. Ride-Hailing App

Ride-hailing mobile applications allow the user to get the cars with the drivers. They can book the car, and the driver will pick them up and drop them off at the destination. These online car booking apps let users book rental vehicles from the apps.

8. Peer-to-Peer Car Rental App

Peer-to-peer car rental apps allow car owners to rent their cars to the users. Users can search for the vehicles available, rent them, and pay through the app's payment gateway feature.  These are similar to car-sharing apps, but the individual rather than the company owns the vehicles.

9. Luxury Car Rental App

Luxury car rental apps specialize in expensive, high-end vehicles. Users can search for and reserve luxury vehicles, hire drivers, or require special amenities such as champagne or flowers.

10. All-In-One Super App

This car rental application combines various services and features. In this app, many of the above types are involved and can also have other features to make the work easy and sorted.

So, these are a few examples of car rental apps that a business can develop. What type you should select depends on factors such as the target market, the available resources, and the company’s overall strategy.

Recommended Read: A Complete Guide on How to Develop a Secure and Feature-Rich UPI Payment App in 2024

What Features You Must Add in Your Car Rental App

When developing a car rental app, several key features can enhance the user experience and make the app more functional:

1. User Registration and Login: This feature is important to allow customers to easily create an account and log in to access their rental information.
   
   
2. Car Search and Reservation: This feature allows customers to search for available cars based on various criteria, such as location, type, and rental dates. Customers should also be able to reserve a vehicle with a few clicks.
   
   
3. Payment Processing: Your car rental application should securely handle initial deposits and final charges.
   
   
4. Push Notifications: App users should receive real-time notifications about their rental, such as pickup and drop-off reminders and reservation changes.
   
   
5. GPS-enabled Cars: Vehicles equipped with GPS can assist customers in locating their rental car and provide the company with valuable information about the car's location.
   
   
6. Mobile Keyless Entry: This feature is also essential to enable customers to unlock and start the car using their smartphone without needing physical keys.
   
   
7. Customer Reviews: The best car rental app should include a feature for customers to rate their rental experience and leave comments. This can help potential users make informed decisions when choosing a rental.
   
   
8. 24/7 Customer Support: The app should provide customers access to a customer support team available 24/7 to answer questions and resolve any issues.

By adding these features to a car rental app, you can provide customers with a seamless and convenient rental experience that makes it easy to rent a car from anywhere at any time.

How To Create a Car Rental Application?

In order to build the best car hire app, you can follow the below-given steps:

Step 1. Make a Plan for Your App

The first involves creating a project plan, setting milestones, identifying risks, and outlining the budgets. The crucial thing here is to clear the roadmap of the development process.

Step 2. Create an Engaging Design

The second step in developing a car rental application is to create a (UI/UX) design and user interface.

This process involves developing mockups, prototypes, and wireframes of the app flow and screens. Focus on creating an intuitive, user-friendly design that provides a seamless user experience.

Step 3. Build your App

The app development process includes coding an application using programming languages, frameworks, and tools like Java, Swift, React Native, and Firebase.

The developers can create the application's front and back end, including features such as registration, login, payment processing, car search, booking, and tracking.

Step 4. Conduct Rigorous Testing

Quality assurance is a very important and necessary part of the development process. The testing process is done to detect and fix any errors, bugs, or issues.

Testing involves manual and automated testing, including unit testing, integration testing, and user acceptance testing (UAT). The goal here is to ensure the application works as intended and provides a reliable and stable service.

Step 5. Launch Your App

It's time to launch the application once all the processes are completed, approved, and tested. These include publishing the app on apps like Apple Store and Google Play.

Now that the car hire app is available in the market, users can download and use it. One more step is included in the launch process, which is marketing and promotion on various social media platforms.

Step 6. Post-Launch Support & Maintenance

After you’ve launched the app, keep up with the frequent updates and maintenance to keep the users engaged and updated with the latest market trends and needs.

How Much Does Car Rental Application Development Cost?

The cost of creating a car rental application can vary depending on several factors such as the app’s features, design, and the development team’s expertise.

On average, the cost of developing a basic car rental app can range from $30,000 to $50,000, while more complex apps with advanced features can cost upwards of $100,000 or more.

The cost is influenced by several factors, such as the app’s size and complexity, the development team’s experience, and the technology stack used.

For instance, building an app with a custom design and range of features, such as real-time GPS tracking and mobile keyless entry, will likely cost more than an app with a basic design and limited features.

You should also consider ongoing costs, such as app maintenance, bug fixes, and updates, which can add to the total price of ownership over time.

If you want to get an accurate estimate for the cost of developing an online car booking app, you should connect with a reputable app development company and provide them with detailed specifications.

Also Read: How Much Does It Cost to Develop an AI Photo Video Editor App Like PicsArt?

How Much Time Does It Take to Build a Car Rental App?

How much time it will take to build the best car rental app depends on several factors, such as the app’s complexity, the size of the development team, and the development method used.

On average, developing a basic car rental app can take 4 to 6 months, while more complex apps with additional features can take up to a year or more to complete.

A key factor that decides the timeline is the scope of the project and the number of features included. The more complex the app, the longer it will take to create.

Moreover, factors such as communication and coordination with the development team can impact the development process, testing, and app store approval processes.

Therefore, it’s important to have realistic expectations for the development timeline and to ensure that sufficient resources are allocated to the project to ensure it is completed on time and within budget.

A well-established app development company like Arramton Infotech can provide a more accurate estimate of the timeline based on the app's specific requirements.

You need to keep in mind that time to market is critical in the car rental app development industry as it can directly impact a company's competitiveness and success.

The quicker a business can launch its app, the faster it can capture market share and establish a market presence.

How Can You Make Money with a Car Rental Application

There are four regular revenue streams applied in car rental mobile app development. Let’s unlock each of them:

1. Commission From Passengers

This is one of the most common ways to monetize car rental apps. In this way, passengers pay the service fee per trip. The total price may vary depending on distances, stopovers, time, cancellation, early booking, or vehicle type.

2. Commission From Drivers

Drivers are also charged per trip. Their commission is subtracted from a total trip cost based on vehicle type, distance, location, etc.

3. Surge Pricing

Passengers must pay more in case of traffic jams, public holidays, bad weather, or high demand. Transparency is essential, so customers must be informed beforehand if the price increases.

4. In-App Advertising

This option allows other brands to cooperate with partners to attract more users. Advertisements can be in-app or in a cab. Brands get more customers; business owners get profit; customers get benefits like good deals or discounts.

How Arramton Can Build a Cost-friendly Car Rental App

Hopefully, you’ve all the information you need to make one of the top car rental apps.

However, it’s worth mentioning that to develop a robust car rental application, you must partner with an experienced on-demand app development company like Arramton Infotech.

With almost a decade in the industry, we have the experience and resources to convert your app idea into a successful reality.

Contact us for queries and discuss your idea, and we can help you build your car rental software.

Frequently Asked Questions

Q. How to build a car rental application?

Ans. Building a car rental app involves several steps: market research, defining app features, designing the user interface, developing the app (front-end and back-end), integrating payment gateways, GPS tracking, and car availability systems, testing, and launching. Consider hiring a mobile app development team with expertise in this domain.

Q. Why should I invest in car rental app development?

Ans. A car rental app can significantly boost your business by reaching a wider audience, improving customer experience, increasing bookings, optimizing fleet management, and generating valuable data for better decision-making. It also enhances brand visibility and loyalty.

Q. How does the car rental app work?

Ans. A car rental app typically allows users to search for available cars based on location, date, and car type. Once selected, users can book the car, make payments, and access digital keys. The app also provides real-time tracking, roadside assistance, and customer support features.

Q. How can I earn money by renting a car in India?

Ans. You can earn money by renting out your car on a car rental platform. Some popular platforms connect car owners with renters. Alternatively, you can build your own car rental app and generate revenue through rental fees, additional services, and partnerships with other businesses.