In car rental, a Peer-to-Peer (P2P) model refers to a business model where private individuals rent out their vehicles when they are not using them. Car rental companies that use this model do not control pick-up or drop-off stations and they do not need to own their own fleet. However, they still need to install tracking devices in each car. These tracking devices communicate with a peer-to-peer platform to which the cars are connected.
Since all rental cars in Peer-to-Peer car rental are connected to a network, customers can use an application to check the availability and location of the cars. They can also use an app to pay for the rental. When the payment is done, the renter can use the car for a set time period and then return the car back to the household of the rental provider or some other specified location.
With this model, the car’s owner gets a share of the profits.
