{"id":20646,"date":"2016-11-18T17:58:18","date_gmt":"2016-11-18T22:58:18","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/getaround-using-digital-technology-to-maximize-car-utilization\/"},"modified":"2016-11-18T18:00:25","modified_gmt":"2016-11-18T23:00:25","slug":"getaround-using-digital-technology-to-maximize-car-utilization","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/getaround-using-digital-technology-to-maximize-car-utilization\/","title":{"rendered":"Getaround: Using Digital Technology to Maximize Car Utilization"},"content":{"rendered":"

Cars: expensive and underutilized, but oftentimes necessary<\/strong><\/p>\n

We have a large problem in the United States: there are a lot of cars that aren\u2019t being utilized very efficiently, but most households\u00a0still purchase cars because use of a vehicle is required in many situations.<\/p>\n

There were 240 million cars in the United States in 2014, a figure that has remained relatively constant over the past several years, and over 90% of U.S. households have at least one car. [1][2] The average total annual cost to own a vehicle is $8,698. [3] Despite widespread adoption and relatively high expense, the median driver only uses their vehicle for 22 minutes per day, meaning those drivers\u2019 cars sit idle for all but those 22 minutes. [4]<\/p>\n

Exhibit 1: Cars in the United States<\/u> [1]<\/p>\n

\"cars-in-us\"<\/a><\/u><\/p>\n

Although car ownership is expensive and potentially inefficient, vehicles are required in many situations, and traditional alternatives to car ownership are frequently less than ideal. Rental agencies introduce a high degree of friction to rent and are frequently located far away from the renter. Transportation services, including Uber and taxis, are relatively expensive and only work for very short trips.<\/p>\n

 <\/p>\n

Getaround uses technology to solve these pain points<\/strong><\/p>\n

Getaround promises to solve these pain points by providing an online marketplace that makes it easy for people who require use of a vehicle on a sporadic basis to rent from nearby car owners, and the Company delivers on this promise by utilizing the internet, mobile phones, and a telematicsa<\/sup> box located in the vehicle.<\/p>\n

 <\/p>\n

How does Getaround work?<\/em><\/p>\n

Once a vehicle owner decides to list on the platform, Getaround installs a telematics box in the vehicle that enables renters to find the vehicle location using GPS tracking and unlock the car with their mobile phone. Owners then set an hourly (or daily) rental price, provide a schedule of when the car is available, and post the car to the online marketplace. [5]<\/p>\n

Renters search the online marketplace for vehicles that are located close by and available in their preferred time slot and price range. Once the renter selects a vehicle, Getaround provides the vehicle\u2019s precise location, and the renter is able to unlock the vehicle using his mobile phone. If there is any damage to the vehicle, the renter takes photos of the damage with his mobile phone and provides the information to Getaround.\u00a0 Owners can track the vehicle throughout the rental and contact the renter at any time using the Getaround mobile application. Upon completion of the rental, the renter signals the end of his trip via the mobile device, and Getaround uses GPS tracking to ensure the vehicle is in the correct location. [6]<\/p>\n

Exhibit 2: Screenshots of Getaround Platform<\/u>\u00a0[7]<\/p>\n

\"getaround-screenshots\"<\/a><\/p>\n

What are the key benefits of the model?<\/em><\/p>\n

Getaround benefits several groups for different reasons:<\/p>\n