{"id":3762,"date":"2017-02-25T12:41:33","date_gmt":"2017-02-25T17:41:33","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/"},"modified":"2017-02-25T12:41:33","modified_gmt":"2017-02-25T17:41:33","slug":"turo-the-collision-of-airbnb-and-automobiles","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/","title":{"rendered":"TURO – The collision of AirBNB and Automobiles"},"content":{"rendered":"

\"\"<\/a>TURO \u2013 The collision of AirBNB and Automobiles<\/p>\n

\u00a0\u00a0\u00a0\u00a0 Automobile ownership is great.\u00a0 You can hop into your car and drive anywhere you want, whenever you want!\u00a0 However, it\u2019s extremely expensive, and typically carries some overhead like insurance and taxes. The same goes for the other side of the equation.\u00a0 Not owning an automobile is great.\u00a0 You can save a ton of money and call an Uber to pick you up in 5 minutes.\u00a0 But what about that weekend trip to the mountains?\u00a0 Or that shopping trip to IKEA?\u00a0 You find yourself paying for a ride to a car rental lot, where you pay an arm and a leg for any of the 3 or 4 choices \u2013 none of which really fit your needs.<\/p>\n

Enter TURO, a car sharing platform that can connect car owners, who would like to make some additional money while not using their vehicle, and car renters, who for one of a hundred reasons isn\u2019t being served by existing car rental agencies.\u00a0 Functioning very much like AirBNB, TURO creates a great deal of value.\u00a0 For owners, it takes about 15 minutes and one picture of your vehicle to create a listing.\u00a0 You can set your own price or allow TURO to use their algorithm to assign a profit-maximizing price.\u00a0 You can also block times on your listing if you know you will need the car.<\/p>\n

\"\"<\/p>\n

From the renter\u2019s side, value is created in many ways.\u00a0 First and foremost, is the wide range of options available.\u00a0 Simply use their app or website to search for a specific price (there are many vehicles available for less than $30 a day), a specific type (you can search for four-wheel drive for winter weather, trucks for moving, or convertibles for enjoying the sun), or a specific pick-up location (literally scattered throughout the city).<\/p>\n

 <\/p>\n

\"\"<\/p>\n

Not only are the options available to the renter far greater than those provided by a rental car company, but the process is extremely different.\u00a0 A car can be booked in minutes, on your phone, and delivered through three different methods.\u00a0 You can either pick up the vehicle from the renter\u2019s location, you can have the vehicle brought to you, or you can have it dropped off to you at an airport, literally as you exit the terminal.\u00a0 No lines, no shuttle busses, no wasted time.<\/p>\n

TURO\u2019s value capture model is pretty straightforward.\u00a0 They take 25% of the earnings that an owner would receive for renting out his or her vehicle. This is almost identical to other platforms, like Uber or AirBNB.\u00a0 Because the money earned by owners is being compared to making nothing at all, the 25% is never a deterrent to renting the car.\u00a0 And because prices are so much lower than rental car agencies, the value for the renter is still there.<\/p>\n

\"\"<\/p>\n

\u00a0\u00a0\u00a0\u00a0 <\/strong>The TURO platform obviously has network effects, which help drive its value for both sides.\u00a0 These network effects are almost all indirect, as an increase in renters drives value for owners, and vice versa.\u00a0 It is important to note that these effects are almost all local, as an increase in vehicles listed in Los Angeles doesn\u2019t benefit a renter in Boston.\u00a0 There are some slight benefits to non-local expansion, as renting while traveling becomes easier when the same service is available in many cities.\u00a0 You can also envision the pricing algorithm getting stronger as the network grows larger.<\/p>\n

Because of the local nature of the network effects associated with a platform like this, scaling can be a difficult and time consuming process.\u00a0 The service was started in Boston, which because of its density, and the fact that its founders were HBS grads, made perfect sense.\u00a0 The platform was then expanded to San Francisco, and other large cities one at a time.\u00a0 A great deal of advertising and marketing was needed to first enter a new city, but then word of mouth spread quickly and the networks grew themselves.\u00a0 TURO is now available in over 4500 cities and 300 airports, and has recently begun operating outside of North America.<\/p>\n

In the beginning, very little multi-homing existed for owners, as TURO was the only game in town.\u00a0 Now that some other companies have sprouted up, like Getaround, owners are able to easily list their asset on multiple platforms and take whatever reservations come in.\u00a0 Renters have always been able to shop around, as checking the availability and pricing of TURO vs a traditional car rental agency vs taking a few Uber\u2019s has always been free and relatively easy.\u00a0 With little commitment or switching costs, TURO will struggle to keep both sides of its platform exclusive.<\/p>\n","protected":false},"excerpt":{"rendered":"

TURO – Can AirBNB and Uber combine to eliminate the need to own a vehicle all together?<\/p>\n","protected":false},"author":1058,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[755,354,1199],"class_list":["post-3762","hck-submission","type-hck-submission","status-publish","hentry","category-peer-to-peer","category-platform","category-turo"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/growing-businesses-in-the-age-of-platforms\/","yoast_head":"\nTURO - The collision of AirBNB and Automobiles - Digital Innovation and Transformation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TURO - The collision of AirBNB and Automobiles - Digital Innovation and Transformation\" \/>\n<meta property=\"og:description\" content=\"TURO - Can AirBNB and Uber combine to eliminate the need to own a vehicle all together?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/\" \/>\n<meta property=\"og:site_name\" content=\"Digital Innovation and Transformation\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/turo-300x169.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/turo-the-collision-of-airbnb-and-automobiles\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/turo-the-collision-of-airbnb-and-automobiles\\\/\",\"name\":\"TURO - The collision of AirBNB and Automobiles - Digital Innovation and Transformation\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/turo-the-collision-of-airbnb-and-automobiles\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/turo-the-collision-of-airbnb-and-automobiles\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2017\\\/02\\\/turo-300x169.jpg\",\"datePublished\":\"2017-02-25T17:41:33+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/turo-the-collision-of-airbnb-and-automobiles\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/turo-the-collision-of-airbnb-and-automobiles\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/turo-the-collision-of-airbnb-and-automobiles\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2017\\\/02\\\/turo.jpg\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2017\\\/02\\\/turo.jpg\",\"width\":1800,\"height\":1012},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/turo-the-collision-of-airbnb-and-automobiles\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"TURO – The collision of AirBNB and Automobiles\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/\",\"name\":\"Digital Innovation and Transformation\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"TURO - The collision of AirBNB and Automobiles - Digital Innovation and Transformation","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/","og_locale":"en_US","og_type":"article","og_title":"TURO - The collision of AirBNB and Automobiles - Digital Innovation and Transformation","og_description":"TURO - Can AirBNB and Uber combine to eliminate the need to own a vehicle all together?","og_url":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/","og_site_name":"Digital Innovation and Transformation","og_image":[{"url":"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/turo-300x169.jpg","type":"","width":"","height":""}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/","url":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/","name":"TURO - The collision of AirBNB and Automobiles - Digital Innovation and Transformation","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-digit\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/turo-300x169.jpg","datePublished":"2017-02-25T17:41:33+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/turo.jpg","contentUrl":"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/turo.jpg","width":1800,"height":1012},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/turo-the-collision-of-airbnb-and-automobiles\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-digit\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/"},{"@type":"ListItem","position":3,"name":"TURO – The collision of AirBNB and Automobiles"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-digit\/#website","url":"https:\/\/d3.harvard.edu\/platform-digit\/","name":"Digital Innovation and Transformation","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-digit\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/hck-submission\/3762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/users\/1058"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/comments?post=3762"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/hck-submission\/3762\/revisions"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/media?parent=3762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/categories?post=3762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}