If you haven't heard of TravelCar yet, it's only because the company just recently made its American debut. Although it began in Paris and currently has 400 agencies in over 30 countries, TravelCar has opened its first United States locations in Los Angeles and San Francisco this summer, with plans to open in eight more cities soon. Those cities include New York, Seattle, Chicago, and Orlando. According to their website, there are half a million users.
So what exactly is TravelCar? The easiest way to describe it is "the Airbnb of car rentals." The way it works is when one person needs to park his car at the airport or train station while he goes on a trip, another person can pay to use the car. It's a win-win situation because the owner of the car won't have to pay for the car to sit in expensive parking and the person renting will save up to 70% of what he'd spend at a traditional car rental company.
If you're interested in sharing your car with others, there are a few stipulations for your car to be eligible for TravelCar. It must be automatic (not a stick shift) and less than ten years old. It also can't be worth over $50,000, be electric, or have over 100,000 miles on it. In addition to free parking, you will be paid according to how many miles it's driven, 14 cents per mile on average. Your car will be washed and refilled with gas before it's returned to you.
For car owners who worry about something happening to their vehicle while it's being used, each car is protected by a $1 million insurance policy. Every car receives a bumper-to-bumper inspection before and after it's used. The person renting the car can choose from three levels of insurance coverage; if the policies are declined, the renter is responsible for all damages. The most expensive package is only $22 a day which includes 24/7 roadside assistance.
TravelCar was founded by Ahmed Mhiri in 2012. Prior to this endeavor, he was a computer engineer and worked for several successful companies. In 2013, he joined the Founder Institute which assisted him with the startup. Since 2016, Mhiri has served as a director and mentor at the Founder Institute. In order for him to expand to the United States, he raised almost $16 million in investments from French carmaker PSA (known for the Peugeot) and MAIR (an insurance company). Both investors are hoping that this business venture will make them global powerhouses.
TravelCar is not the first company of its kind. In fact, it is very similar to FlightCar which started in San Francisco, expanded to twelve U.S. airports, and then suddenly closed after blowing through $40 million. Mhiri isn't discouraged though. He's banking on the company expanding quickly and becoming a "one-stop-shop" for ground transportation.
Only time will tell how well TravelCar will fare against other car sharing companies such as Turo, Getaround, Zipcar and car2go. Each service has its own advantages and TravelCar hopes to appeal to people who want to make money while they are on vacation rather than spending it. The fact that TravelCar recently took over its competitor Tripndrive in Paris could be a very good sign of success to come in the future. It seems that Americans will remain dependent on cars and continue to be both concerned with the environment and in search of ways to make money. These factors work in TravelCar's favor. If the enthusiasm of the investors is any indication of how well TravelCar will do in the United States, they very well could become the leading car sharing company in the world.
