Turo is a car-sharing platform that has seen a lot of changes over the past few months. With the rise of the platform, prices have steadily declined, and as a result, many people who started using Turo as a way to make extra money have now shifted to other platforms. There are a few reasons for this, including the decline of rental car prices, the race to the bottom in terms of pricing, and the increasing competition from other platforms.
Back during the pandemic, many people jumped onto Turo because it was a way to make easy money from the comfort of their own homes. With rental car companies such as Hertz, Enterprise, and Budget closed, prices rose and the birth of the Turo rental car business rose as a result. However, over the past few months, prices have been declining, and people are becoming more desperate in order to stay competitive.
Turo operates on a commission-based system, so their goal is to push the cheapest possible cars to the top of the platform in order to generate rentals and make money. Unfortunately, this race to the bottom has led to prices being lowered to the point where some people are renting their cars for just a few dollars a day. This is making it harder for business owners to maintain profitability.
The prices of regular rental cars have also come back, making it difficult for Turo to compete. For example, a brand new Nissan Altima can be rented for just $26 a day, while the same car on Turo may be priced at $55 to $60 a day. This is causing many people to opt for traditional rental cars instead of Turo.
One controversial take is that the rise of Turo was a result of the pandemic and the need for people to rent cars with their stimulus money. Many people who didn’t have credit cards or disposable income were able to rent cars with a debit card or checking account, and this made a significant impact on the platform. However, now that the economy has slowed down and people are back to work, the cracks are starting to show in the Turo rental car market.
In conclusion, while Turo may have been a viable option for car rentals in the past, the current market conditions make it increasingly difficult for people to make a profit. With declining prices and increasing competition, it’s important for those considering using Turo to be aware of the potential challenges they may face.