Turo targets former Zipcar users with capital-light car-sharing model

Core Insights - Turo is expanding its presence in London, targeting former Zipcar users by promoting peer-to-peer vehicle hire as a means for private owners to earn income from idle cars [1][2] Company Overview - Turo, a US-based start-up, has been operating in the UK since 2018 and currently has over 2,000 London motorists listing vehicles on its platform [2] - Unlike Zipcar, Turo does not own or lease a fleet, instead facilitating short-term rentals between private individuals [2] Business Model - The company's UK managing director, Rory Brimmer, highlighted that Turo's model avoids capital costs associated with fleet ownership, as vehicles are often idle and can generate income [3] - Hosts on Turo set vehicle availability, with prices fluctuating based on demand and seasonality. The platform takes a commission of 25% to 35% from the hire fee, depending on the chosen insurance and service package [4] - On average, Turo hosts earn around £400 a month, although earnings can vary based on vehicle type and utilization [4] Market Opportunity - Following Zipcar's exit from the UK market, Turo launched a £120,000 advertising campaign to capture the displaced demand, which Brimmer described as an opportunity [6] - Zipcar's decision to exit was attributed to deteriorating financial performance and rising operating costs, leading to widening losses and decreased revenue [7] - The introduction of new charges in London, including the extension of the congestion charge to electric vehicles, has further increased operating costs for Zipcar, impacting its business viability [7]