How To Develop A Car Rental Mobile App – Cost And Features

In recent years, car rental has become extremely popular and convenient as more people started relying on it for transport. Therefore, building a car rental mobile app can be a profitable business venture to step in and be part of a growing market. However, working on the car rental mobile app requires careful planning and execution. The app should be efficient, user-friendly, and meet the needs of all the customers and the service provider.

In this blog, we will talk about all the steps involved in creating a care rental mobile application, the technology stack used, the features and functionality of the app, and designing of the app. Concluding, you will know all the details of how a car rental app is created to stand out in the market and attract a large user base.

What Are Car Rental Mobile Apps?

Luxurious living has become the new trend in the town, and people from all walks of life like to enjoy the little joys they get in availing of usual services at reasonable prices. With car rentals becoming a service easy to avail of, the service providers have made a drastic move to the car rental apps and have been selling their services on the platform. While people have got a lot of options of cars to choose from and drive themselves, they can now avail lucrative offers by comparing prices and the availability of cars from various apps available. It is pretty easy to use as well, as users do not have to look up services on a web browser and make unnecessary calls.

Car rental apps have gained immense recognition due to the growing demand, and one can see an upsurge in using such mobile applications. These apps help the users place their booking order on the app and get notifications giving them information on the details of the car and the timings.

The convenience of this app is to book a car rental service from anywhere in the world with the help of an internet connection. You will get access to the car rental service in the zone you are in and will, thus, know which one is the nearest to you. This creates a sense of loyalty among the users. Take a close look at each detail of this industry to get a better understanding of how these apps work.

Understanding the Concept of A Car Rental Mobile App 

A car rental mobile app simplifies renting a car, enabling users to search for available vehicles, select pick-up locations and times, choose a car type, and manage their booking. The app helps rental companies to manage their fleet, track reservations, and handle customer requests. Features like real-time car availability, GPS tracking, and nearby locations increase convenience for customers. The app benefits customers and rental companies, providing a more efficient and convenient rental experience.

Market Size of Car Rental Industry

The car rental industry is not only vast but is constantly growing with the needs of the users. With commuting being a part of everyone’s routine, these services have significantly benefitted. The on-demand car rental industry stands among the most prominent industries right now, and car rental is a part of that.

The car rental apps are not just limited to big companies, small and medium-sized companies are also making the apps. Since there is a lot of demand for such apps, the service providers are trying to meet that demand by providing several services through their apps.

Let’s Look at Some Stats for The Worldwide Car Rental Market.

• Revenue in the Car Rentals segment is projected to reach US$53,333m in 2020.
• Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 18.5%, resulting in a projected market volume of US$105,285m by 2024.
• User penetration is 3.6% in 2020 and is expected to hit 7.1% by 2024.
• The average revenue per user (ARPU) is expected to be US$200.37.
• In global comparison, most revenue will be generated in the United States (US$16,155m in 2020).
• The revenue in car rental is estimated to reach US $99.54 billion in 2023. 
• The market’s annual growth rate will reach 4.65%, with a market value of US $119.40 billion by 2027. 
• The Global Car Rental Software Market grew US$ 101,729.76 Million in 2021 and is expected to grow to US$ 188,933.23 Million by 2027. It is expected to grow at a CAGR of 9.25% between 2021- 2027.

One such app in India that is doing well is the Zoom car app, which started in 2013 with merely seven cars, and has expanded its business to a great extent with over 1800 cars in service. According to reports, the company will add 6000 additional vehicles in times to come.

Latest Market Trends in Car Rental Industry 

1. Increased Demand for Electric and Hybrid Vehicles

As a number of users are looking for sustainable transportation, car rental companies are also bending towards electric and hybrid vehicles. By integrating the app with the rental, companies can offer many benefits, like real-time inventory and updates regarding the charging stations. It also provides customized pricing options for customers. The app can also offer users a seamless rental experience from booking to payment.  

2. Personalization and Customization

One of the most used trends nowadays in the car rental industry is customization and personalization, which help companies build a strong relationships with customers. The application can provide multiple features like pricing and vehicle options according to needs, preferences, and loyalty rewards. These benefits can provide users a better experience, stay longer, and recommend to others. 

3. Integration with Ride-Sharing Services:

Multiple options can be provided by car rental companies nowadays. And the most common one that is popular among many users to cut down the cost of travel is sharing. The app can improve the user experience by providing ride-sharing services, and the users can even switch between both options. 

This integration can also provide new revenue streams for the car rental company and help them tap into new markets.

4. Mobile Apps and Technology

Technologies are advancing very rapidly, and to be at the top of other competitors, it is important for care rental companies to also have the proper updates and integration of these on time to provide a better customer experience. The mobile apps can provide many features, such as mobile check-in, booking management, and real-time vehicle availability. 

5. Artificial Intelligence (AI)

The mobile applications use AI to analyze the customers’ data and then recommend personalized recommendations that meet each customer’s specific needs. This helps the company to increase sales and build strong relationships with customers. For a user-friendly experience, AI can also provide real-time inventory updates and customized pricing options to make customers rent more often. 

6. Internet of Things (IoT)

IoT can help car rental companies manage and monitor their fleet more efficiently, providing real-time vehicle location, fuel level, and maintenance status data. Integrating IoT with the mobile app offers many features like remote vehicle start and keyless entry to improve the customer experience. The app can also provide alerts for maintenance and repairs, reducing the risk of breakdowns and increasing customer satisfaction.

7. Blockchain Technology

Integrating blockchain technology in car rental apps can make it a secure and transparent rental experience that helps build customer trust. Blockchain can be used to provide secure transactions, vehicle history, and maintenance records, which will help companies improve customer satisfaction and reduce the risk of fraud.

8. Virtual Reality (VR)

A mobile app can use VR to help customers preview vehicles and make an informed rental decision. Using VR, customers can experience the vehicle’s interior and exterior features in a realistic virtual environment. This can help rental companies increase sales and provide a more engaging rental experience.

9. Mobile Payment Options

To make the customer experience seamless and convenient, multiple mobile payment options are an efficient method to put in the apps. The application can offer the features like digital receipts and automated invoicing to reduce the friction in the rental process. This can help rental companies increase customer satisfaction and reduce administrative costs. 

10. Cloud Computing

This technology can be used in the car rental application to store and access data from anywhere worldwide. The app can also use cloud computing to manage customer information, vehicle inventory, and rental history. This helps the companies provide a seamless customer experience and increase operational efficiency. 

11. Metaverse

With the growth of the metaverse, car rental companies can also provide customers with a new and advanced experience. Virtual test drives, immersive showroom experiences, and gamified rental options can be offered with the help of the metaverse by the companies. This can help companies engage more in rental experiences and attract new customers. 

12. Gamification

Gamification can make the rental experience more fun and engaging for customers. A mobile app can use gamification to offer features like loyalty rewards, challenges, and leaderboards that encourage customers to rent more often. This can help rental companies increase customer engagement and loyalty.

The Revenue Model of Car Rental Apps

The car rental services offer cars and other luxuries to the users. There is a reason why this business helps service providers generate good revenue and work efficiently without letting any glitch bother their revenue model. Let’s look at the revenue sources for the car rental businesses:

1. Car Fleet of Their Own

This requires the service providers to set up a big business with a good deal of investment. The company has to buy cars and assign them to various drivers. They earn the base fare given by the customer for the services. The drivers are either paid every month or based on each service provided. One of the most popular apps, Hertz, follows this business model.

2. Commission-Based

This one is a little different, where car owners get a platform under one of the car service apps and receive money according to each booking. A certain amount from their earnings goes to the app developers. Another option under this model is that the car owners can give their cars to a driver who takes bookings and takes the car around the city.

Types of Car Rentals Apps

These apps cater to a wide variety of user needs. Take a look at the various kinds of car rental mobile apps that are available in the market:

1. Self-Driven Car Rentals

Under this category, a user books a car for rent and drives it himself. He is charged based on the car selected and the hours he has hired a car for.

2. Corporate Car Rentals

This service offers convenience to business clients by offering them their cars for office purposes.

3. Outstation Car Services

This one manages the travel bookings of travelers who travel to other cities and states. It allows them to book the car for a longer period.

4. Local Car Rentals

This one offers the users cars based on an hourly, half-day, or full-day basis. It also includes airport pickups and drop-offs.

5. Traditional Car Rental App

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

6. Car-Sharing App

These types of apps allow users to rent cars in hours or minutes. These apps are popular in urban areas where car ownership is not common. Users 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

These apps allow the user to get the cars with the in drivers. They can book the car, and the driver will pick them up and drop them at the destination. These ride-hailing apps also allow users to book rental cars from the apps. 

8. Peer-to-Peer Car Rental App

This app allows the owner to rent their car to the users. Users can search for the cars available, rent them, and pay through the apps. These are quite similar to car-sharing apps, but the individual rather than the company owns the vehicles. 

9. Luxury Car Rental App

A luxury car rental app that specializes in expensive, high-end vehicles. Users can search for and reserve luxury vehicles, as well as hire a driver or request special amenities such as champagne or flowers.

10. All-In-One Super App

It is a single platform that combines various services and features into it. In this type of application, many of the above types are involved and can have other additional features also to make the work easy and sorted. 

These are just a few examples of the types of car rental apps that a business can develop. The type of app best suited for a particular business will depend on factors such as the target market, the available resources, and the company’s overall strategy.

How Car Rental Mobile Apps Work 

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

• Once the account is created, customers can search for available cars by location, date, and time and choose the car that suits their needs.

• Customers 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.

• Customers can also search for available cars, view pricing and availability, make reservations, and get support from the rental company.

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

• When the rental period ends, customers can use the app to check the car back in and complete the rental.

Overall, car rental mobile apps make the car rental process more convenient and efficient for customers while also providing rental companies with a way to serve their customers better and increase revenue.

Also read: How to develop a mobile app for eCommerce

The Role of Mobile Apps in the Car Rental Business 

Mobile apps play a vital role in the car rental business by allowing customers to make reservations, manage their rentals, and access support and assistance from the rental company, all from their mobile devices. They can get all the services related to the renting of cars in a single app that reduces many arduous processes and makes it easy. Some common features of car rental apps include:- 

Overall, mobile app implementation in car rental is beneficial for both customers and business owners. These can make the process convenient from both ends in more secure ways. By providing a more seamless experience to the user, car rental companies revenue also increases positively.

Popular Car Rental Mobile Apps

There are a number of apps that have contributed to the industry and are flourishing because of the services they have offered to the users. Let’s look at some of these apps:

1. Hertz Car Rental App

Hertz is a car rental company with an app that lets you rent cars. You can search for cars, make a reservation, view rental history, and manage your Hertz Gold Plus Rewards account. The app also has features like contactless check-in, car selection, and add-ons. It’s a convenient platform for renting cars. The compatibility of app is with the iPhone, iPad touch, and Android. 

2. Zipcar

They offer services mainly in the U.S. and Canada. It is one of the most economical car rental service apps where one can book a car either on an hourly basis on a daily basis.

3. Skyscanner

This car rental app service has gained popularity because of its additional services that allow users to book flight tickets and accommodations as well. The users get a number of services all on a single platform.

4. Hotwire

Another one of the car rental service apps that are doing tremendously well in the field, Hotwire, has the same business model as Skyscanner. It offers lucrative deals that enable users to save more than 60 percent on their bookings.

5. Avis

Headquartered in Parsippany, New Jersey, the car rental service provides affordable cars at rent and quotes a price that is not too heavy on the pocket of the app users. It offers a variety of cars on its platform and allows users to either book a self-driven car either on an hourly basis or on a daily basis. It also focuses on providing proper safety, like child safety seats and roadside assistance.

6. Zoomcar

The company started in 2013 with merely seven cars and has expanded its business to a great extent with over 1800 cars in service. According to reports, the company will add 6000 additional cars in times to come.

7. Enterprise

The Enterprise car rental app is designed to make it easy for customers to rent and manage cars. It allows users to search for available cars, view details about each car, makes reservations, and modify or cancel existing reservations. The app also offers additional features such as roadside assistance, rental history, and loyalty program information. The app is compatible with the platforms Android, iPhone, iPod touch, and Mac.

8. Alamo

The Alamo car rental app is designed to make it easy for customers to rent and manage the desired car within the location they want. To speed up the whole process, you can also use the accelerated check-in feature, and if you sign up for the account, you can get even more benefits with an extra 5% off base rates and even faster reservations. And if you need any help, there is 24/7 service also available to help you out. 

9. Budget

The Budget car rental app makes it easy for users to rent and manage cars. It allows users to search for available cars, make reservations, and modify or cancel existing reservations. The app also provides additional features such as rental history and customer support. Overall, the app offers a convenient solution for on-the-go car rentals.

10. Turo

Turo is recently added to the list of best car rental service apps. It is known for its peer-to-peer car-sharing marketplace. This is the app that allows the vetted car owner to give their own vehicle for rental purposes. This can help the user choose more variety of vehicles around their surroundings. This results in offering more cheaper rate than the traditional car service.

General Features of Car Rental App Development 

1. Super Admin App

• Dashboard to manage all rental activities and analytics
• Manage customers, drivers, and vehicles
• Manage reservations and bookings
• Manage pricing and inventory
• Manage payments and billing
• Manage customer support and feedback

2. Drivers App

• Accept or decline ride requests
• In-app navigation to pick up and drop off customers
• View trip history and earnings
• Contact support and report issues
• Manage account settings and preferences

3. Customers App

• Register and create an account
• Search for available cars and view pricing and availability
• Make reservations and bookings
• Track reservation and rental history
• Contact support and report issues
• Manage account settings and preferences
• Provide feedback and ratings for their rental experience
• View loyalty rewards and program status

It’s important to note that the features of car rental apps can vary depending on the rental company and the specific needs of their users. These are just some common features that may be included in each type of app.

Advanced Car Rental App Features to Consider While Development

1. Assign Drivers

This feature enables the users to book the driver along with the car from the app itself. They can select a person as their driver after reading their reviews and ratings on the app. This service is mostly availed when a person wants to book a ride in the long run. The user can also request information like the driver’s gender, age, rating, and experience.

2. Interactive Statistics

The car rental apps give access to the real base fare along with other information like fixed packages, time rates, surge pricing, and distances. One can get insight into the exact business process of the organization.

3. Payment Gateway

Payments can be a cause of concern if there is no transparency and the actual price varies from the one displayed on the screen while making the booking. Now that a lot of options for payments are available, including online banking, debit/credit card, e-wallets, and UPI, it has become easy for the user to make a booking without any hassle.

4. Zone Set-Up Is Operational

A car rental organization is well versed in the area with maximum users of their services. They can set up promotional services in the area to lure users and allow them to make the most out of the services offered by car rental service providers.

5. GPS Tracking for Pick-Ups and Security

One of the main features that ensure not only safety but help the car driver to locate the customer, GPS tracking, has made the business operate smoothly. Users can access the location of the driver and help him navigate to the pick-up point easily. Also, the live location of the car can be shared by the user with his friends, family, or admin for security reasons.

6. User’s Behavior Tracking

The app saves the algorithm of bookings made and canceled by the users; it also gives the rental service providers access to the kinds of bookings made by the users. It helps them allocate cars and drivers to each user according to their behavior and their preference.

7. Offers

To lure customers into booking a service from your app, a car rental service will have to offer them lucrative offers they cannot ignore at any cost. Regular users love to get special prices for the services they avail.

8. Cost Calculator

For users who want to rent a car and drive it themselves to an outstation or want it for a certain period of time, the cost calculator helps them get a rough idea of how much it would cost them for the time frame mentioned by them. This allows them to compare the prices of services offered by different apps and book the one that is most economical for them.

9. Communication and Notification

The apps maintain transparency by providing sending timely notifications of each detail to the users. Any booking information will be communicated to them in the form of a notification. The details of the car and the price will be sent to them before delivering the car to them.

10. Push Notification

A push notification enables the app developers to keep their users informed about their booking and details of the car that is being sent for their service. They are also notified about the final pricing of the service. Users can get information like any offers or promotions run by the app in the form of a push notification.

11. Email and Message

Although the details of the service are sent through push notifications, they should also be sent to the users either on their email id or as a text message on the mobile device. This helps them save the details for future reference if needed.

12. In-App Calls

The users should be allowed to make calls to the drivers or the service providers without being charged through the app. This allows them to stay on the app without navigating away to switch to contacts or phone calls.

13. In-App Videos

This feature allows users to make video calls through the app itself.

14. Multiple Bookings

Under this feature, the users are allowed to make not one but as many bookings as he wants at one time. The apps also allow him to make bookings for multiple locations.

15. Custom Packages

This feature is especially for returning and loyal customers. If they use the service of a car rental service quite often, they can choose from the custom packages offered through the app.

16. Floating Window

This helps the users in making a quick booking for a car. Their location is saved, and they can quickly make the booking between two places that he commutes on a regular basis.

17. Real-Time Analytics & Statistics

This helps the admin know the number of cars that have been rented at one point in time and the details, along with the location update of each car.

18. Robust Fleet Tracking

A device is installed in the car that tracks the vehicle and provides its location information to the app developers of the car rental company.

19. In-App Call Contact Masking

This provides security to the users by enabling them to connect with the drivers through the app without revealing their phone numbers to them.

20. In-App Document Scanner

While most interstate car rental services ask the users to provide their ID documents before availing of the service, it is helpful to users if they get an inbuilt document scanner in the app itself.

21. In-App Document Upload

With the help of this feature, the owner of a car can check and verify the license and other documents before renting the car, and the customer can upload the required document to rent the car.

22. Loyalty Programs

Provide something extra to your loyal customers. Offer loyalty programs like earning reward points leading to free services with the accumulated points.

23. CRM Integration

Customer relationship management is the most healthy feature for any application. It helps the customers get in touch with the support team of the app and can listen and act upon their queries at any point in time.

24. Panic Button

It is always beneficial to maintain decorum among your drivers. A panic button should be installed in the app, which can help the users or passengers to raise the alarm if they sense anything wrong with them during the ride.

Benefits of developing a mobile app for Car Rent Business 

1. Increased Customer Engagement

To engage with customers at a more personal level, car rental companies can use mobile apps. With the help of mobile devices, the customer can access information, make reservations and manage their rental also to make the rental experience more convenient and accessible.

2. Improved Customer Experience

A mobile application that is well-designed can provide a more user-friendly and streamlined experience, improving the loyalty and satisfaction of customers. 

3. Increased Visibility and Reach

A mobile app can help car rental companies reach a wider audience and expand their customer base by making it easier for potential customers to find and interact with their business.

4. Enhanced Brand Recognition

To stand out in the crowded market, car rental mobile apps can be a beneficial tool. The app can reinforce the brand identity and values of the company and improve its overall reputation. 

5. Data Collection and Analysis

To help the company make optimized and informed decisions for the customer, mobile apps can provide data on customer behavior, usage patterns, and preferences. 

6. Competitive Advantage

Building a mobile app for car rental companies can give businesses a competitive edge over the business in the growing industry. They also attract and retain customers more effectively by providing user-friendly and more convenient apps.

Essential Things to be Considered while Developing a Car Rental Platform

1. Insurance

All vehicles put up for the service should be insured; at the insurance, papers should be handed over to the users/clients when the car is delivered to their place.

2. Safety and Security

The on-demand app should adhere to government guidelines and provide proper safety measures to the users. Some apps provide roadside assistance as well, which is a good measure to provide a sense of security to the users. If, at any point in time, a car breaks down anywhere, they can right away call the service providers and ask them for assistance.

3. Speed Limit

The car rental service providers can set a speed limit on their cars according to the speed limit regulations in their city. As the tickets are cut online, and the car exceeding the speed limit would receive a ticket online, therefore, the users must be told in advance about maintaining the speed limit.

4. Fuel Policy

All apps work in different ways. While some might offer some fuel initially and would want the users to get fuel filled later on their own, some might just want the users to come and pick up the car from a specific spot and get their fuel filled themselves. However, a user can also request for fuel in the car if they do not want to waste their time at a gas station. This would result in some additional costs.

5. User Authentication

The app should authenticate all the users availing of any service from the service providers after signing up on the app. Their details, along with the address and contact details, should be listed adequately for the record of the service providers.

6. Damage Policy

The app asks the user to take charge if the car gets damaged during the course. The user has to go through an agreement stating the same and tick inside a box for agreement before starting to peruse their service.

7. Service and Maintenance

The users should be informed about the services provided by the service providers, and a brief about the maintenance of the cars should also be mentioned in the app. This helps in bringing transparency between the service provider and the users.

Team Required to Develop Such Apps

Here’s a table summarizing the team roles typically required for developing an app for a car rental business:

The size of the team may vary depending on the complexity of the app and the development timeline. Additionally, depending on the specific requirements of the project, additional roles may be needed, such as a marketing specialist or a business analyst. The success of an app development team relies on a mix of technical skills, industry knowledge, and project management expertise.

Technology Required For Developing An App For A Car Rental Business

The adobe table shows, How different technologies can be combined to develop an app for a car rental business. The specific technologies and APIs used may vary depending on the requirements and goals of the project.

How to Develop a Car Rental Mobile Application

1. Plan

The initial step, to begin with, is the requirement of applications, their functionality, design, and features. This also involves creating a project plan, setting milestones, identifying risks, and outlining the budgets. The main motive here is to clear the roadmap of the development process.

2. Design

The second step is to create a (UI/UX) design and user interface for the application. This process involves developing mockups, prototypes, and wireframes of the app flow and screens. The main motive is to create an intuitive and user-friendly design that provides a seamless user experience. 

3. Develop

The process of development includes the coding of an application using programming languages, frameworks, and tools such as Java, Swift, React Native, and Firebase. The front end and back end of the application can be created by the developers, including several features such as registration, login, payment processing, car search, booking, and tracking. 

4. Test

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 motive is to take care the application works as intended and provides a reliable and stable service. 

5. Launch

Once all the processes are completed, approved, and tested, it’s time to launch the application. These include publishing the app on app stores such as Apple Store and Google Play. Now as the app is available in the market, users can start downloading and using it. There is one more step that includes in the launch process, which is marketing and promotion on various platforms of social media. 

Cost of Developing a Car Rental Mobile App

Before starting to work on the app’s development, a car rental service should figure out the target audience and the number of features they want to include in their app. The more complex the app, the more it will cost. If a company starts off with a limited amount of features initially, the cost might seem reasonable. The car rental service providers can either hire a team of developers and designers to work for them or hire freelancers to work on an hourly and daily basis.

The approximate estimate for developing a car rental app will be somewhere between $17,000 to $30,000. However, if you plan to include technical parameters and additional features, then the cost of app development might go higher than this.

Why Choose Us for Creating Car Rental Mobile App Development 

Emizentech is a well-known and reputable car rental mobile app development company that has extensive experience in creating high-quality mobile applications for various industries. If you are looking to develop an app for your car rental business, there are several reasons why you should consider choosing us.

• It has a well-defined development process that includes regular communication with clients.
• Completed successful mobile app development projects for numerous clients.
• Offers flexible pricing options that allow clients to choose the services.
• Has experienced mobile app developers who specialize in creating custom mobile apps for various industries.
• Offers 24/7 support to ensure that the mobile app is up and running smoothly.

Overall, if you’re looking for a reliable and experienced mobile app development company for your car rental business, considering us is worth it.

Conclusion

Creating automotive software or mobile app for car rental companies can offer numerous advantages for customers and businesses. With the ability to conveniently rent a car through online reservations, track in real-time, and make mobile payments, customers can experience a hassle-free and improved rental experience. Additionally, car rental companies can optimize operations, increase revenue, and maintain a competitive edge in today’s digital environment. Thus, developing a mobile app is a wise investment for car rental businesses seeking to provide an exceptional customer experience and grow their business.