What does it take to build up a fleet of cars on a peer-to-peer car rental platform?
B2C Marketplace Supplier stories; Part 1
I’m Lottie, co-founder of Reallm, providing reports and recommendations for marketplace suppliers. In this series, we’re shining a light on people making a living or a little extra dosh from their skills or unused assets through marketplaces.
I am sure that many people have considered using one of these platforms, either to rent out their room on Airbnb when they go on holiday or their car when they are working from home. And then thought ‘Is it really worth the hassle”. Well, in this series we’re presenting the real experiences of those that have just got on and done it. We’ll include top tips, funny stories and, unavoidably, how everything changed in 2020.
In Part 1 of the series, we speak to Sammy, who rents out, not just one, but three cars on HiyaCar, a London-based peer-to-peer “P2P” car rental platform.
TL;DR You don’t need as much as you think to get started. Sammy’s car paid for itself in under a year. The only thing stopping him expanding further is places to park!
— — — — — — — — — — — — — — — — — — — — — — —
Let’s start with the basics. What car do you have?
A VW golf, a Vauxhall Astra and a Ford focus.
Incredible. 3 cars! Did you start with just one car?
Exactly, I started off with the Golf and then I saw there was good potential. I made the decision to expand to a second car and when that worked out to get a third car as well.
Where are you and your cars based? Do you think the location is part of the reason your cars do so well?
In Finsbury Park, N4. Yep, I think that’s definitely part of the reason. Anywhere that there is a high density of population but limited cars and parking spaces. If my cars were further out of London then they wouldn’t do as well.
Is hiring out your cars a side hustle or your primary income?
It’s just a side-project for me. I started doing it whilst I was at uni, I wasn’t using my car as much because I was living in uni accommodation and I wasn’t allowed to have a permit near the accommodation. I was keeping the car at my mum’s house and thought why not rent it out to make extra money. At first I was a bit hesitant. Thinking, is this the way forward? Am I really trusting a complete stranger? But it was such a great opportunity to make some easy money. After a year, I decided to get another car and then one more a year on again.
“I was keeping the car at my mum’s house and thought why not rent it out to make extra money.”
How often do your cars get booked out?
In some of the busiest months, the cars get booked about 20 days out of the month. This would be the case, for instance, during the summer. In a quiet season like January to March, they get booked about 10 days of the month. More often on weekends than in the week.
Do you know where and what people do with your cars?
There’s a feature on the app asking “Why are you hiring the car?”. From the owner’s side, you can then see for example, “I’m taking a trip to Cornwall”. Most people fill it in which gives a bit of reassurance. The best thing is lots of people come back again. You can build up relationships with the drivers and then you know you won’t have any problems with them. You have got to learn to make that leap and get through the first booking.
Are you thinking about getting a fourth car?
Yep! The only thing blocking me is parking. I can’t get any more parking permits. I am trying to work out what’s the best solution. I was considering parking a car about 20 minutes from my house where there’s free parking. Alternatively, HiyaCar has partnerships with various parking companies. I might go down that route when lockdown finishes and the number of bookings increases again!
“You have got to learn to make that leap and get through the first booking.”
How quickly did your cars pay for themselves?
My first car I owned outright before I even rented it out. The second car, I took a loan from a bank. I bought it for about £10k in June 2019. That was the entire cost of the car, and it was a three year loan. With HiyaCar bookings, I paid it off within a year.
That brings us to the 2020 question. How was last year in terms of bookings?
There were really no bookings whatsoever during the first lockdown. Then HiyaCar was kind enough to let NHS workers use the cars for free. So I joined the program and I had an NHS worker use my car for about 20 days for free and HiyaCar paid for the insurance. And then they offered to clean the car after but I did it myself. Once the lockdown did ease, around June, there were a lot of bookings, it was even busier than the year before. Then this new lockdown has been very quiet.
What would be your top tips for people starting out?
I didn’t get QuickStart immediately, as I was a bit hesitant in getting it and I would definitely get that straight away now. You can also go for Instant Book and get stickers, which helps you get more local bookings. Apart from that, look after the people that rent your cars. Keep it clean, keep it tidy, and make sure your car is in top shape, in terms of maintenance and everything.
I have to ask, shameless plug incoming, how have you found the Reallm reports that go out each month?
I have found it really useful. Especially seeing how much I’ve earned in a month, my acceptance rates and what my price range is compared to other people in my area. With Reallm reports, when it gets to a busy season, you can know exactly what went well, what went badly and how to improve.
See Sammy’s December report here.
— — — — — — — — — — — — — — — — — — — — — — — — —
Reallm helps online marketplaces and their suppliers to earn more through reports and recommendations including comparisons to other suppliers.
