THE GETAROUND POWER HOST PROGRAM
The Getaround® power host car sharing business model is simple to understand and just as simple to enroll.
With a low barrier to entry — anyone with a car can become a business owner — you can sign up today and begin accepting guests the same day the service provider installs your Getaround Connect® device. Depending upon your area and the installer's availability, this is typically a few days but could be a week or more.
Getaround is a round-trip car sharing model; guests use the Getaround app to pick and return cars to essentially the same location. Through the app, guests pay a fee based on the amount of time they use the car. They are limited to 200 miles and Getaround assesses a fee for overage, a part of which is passed on to the host.
Demographics, urbanization, and the economy drive change — and interest — in the car sharing market. Millennials and Gen-Z between the ages of 15 and 40 drive less, more often live in urban areas, and tend to live at the poverty level despite being employed.
Car sharing offers these cohorts access to the vehicles they need to live and work and has led to explosive growth in the car sharing industry.
Frost and Sullivan, an automotive and transportation consulting firm, expects the car share market to grow from 7 million in 2015 to 36 million by 2025 and that available cars will increase by 400% for the same duration. In short, there's never been a better time to become a car sharing host.
“There were 44.8 million people who used sharing economy services in the United States in 2016. That figure is expected to double by 2021.”
Some competitors focus on ensuring continuous active sharing of the hosts' cars, regardless of the hourly rate, leading to high utilization (as much as 80%) but meager earnings per mile.
When it comes time to retire the vehicle, the host has a high-mileage car that earned a low per-mile rate and has reduced resale value.
Getaround's approach is different.
Single-car owners and some small fleet owners use the income approach for their car sharing business by paying 100% cash for their cars resulting in no monthly car payment. In this model, the focus is on the monthly income each vehicle generates. Typically, hosts leave their cars on the platform for as long as they can service guests safely; however, some hosts consider depreciation and sell cars to optimize for resale. Since there is no monthly payment, hosts have more take-home income each month, but this requires a much higher investment to get started. The result is often a lower annual return rate at the resale point (based on how much money the host put down to buy the car) but higher monthly cash flow and profit.
Other small fleet owners and most, if not all, large-fleet owners use a different approach for their car sharing business or putting limited cash down per car and leveraging debt in the form of a monthly payment. These owners carefully weigh the value of earnings per mile, depreciation, and the ability to retire cars while their resale value is high. This consideration allows the host to use their monthly earnings to pay off their asset while covering all maintenance and management costs required to keep the car active on the platform. Once the vehicle has reached the optimal resale (and is likely fully paid off), the host has a significant financial gain compared to the limited cash they put down to start their car sharing business. Often this results in a higher return at the point of resale, but lower monthly cash flow and profit.
“75% of consumers within the car sharing industry actually own a vehicle themselves.”
Getaround provides a dedicated team of account managers armed with data about markets, cities, cars, and guests. We want you to derive the most success you can from your fleet on the Getaround platform. Speak with your FBM today or complete this form to begin the enrollment process.
In 2020, Getaround expanded into 26 new markets, began onboarding new hosts, and offered these markets to current hosts. In several cases, current power hosts moved cars from an established market to a new market and reaped pent-up interest rewards. These new markets out-performed existing markets by as much as 49%!
While expanding or testing new markets has been a successful strategy for some hosts for increased bookings, you don't have to move cars to get more booked hours. Speak with your FBM today to learn more about popular models and align your car’s availability with peak demand hours.
Guests are more likely to book a car with a detailed description than others of the same make and model. Take the time to write a thorough description and provide in-depth information about the car's best features, where it is parked, how to find the keys, or where to find the lockbox. Mention if you are using Enhanced Security since this is important for guests to know. If you clean your cars every day, tell them! Guests prefer a clean car.
Even if you have a utility truck that has seen better days, pictures are a great selling point for your vehicle. Include lots of pictures and update them regularly. Show all sides, so guests know of any damage beforehand. Include interior photos as well, including trunk space. It's also helpful to include the trunk measurements, with and without back seats folded down. If you have a car that can accommodate a sheet of plywood, show it!
Cars with detailed descriptions and lots of photos are best at setting the guest's expectations. When you meet the guest's expectations, you are much more likely to receive great reviews and, as a result, get more bookings.
Getaround makes becoming a host a possibility for anyone with an eligible car — whether you are carrying a loan or lease on the vehicle* or you have paid it off. For people with multiple cars, the Power Host program provides a level of support and guidance, which hosts need to manage the availability and maintenance of a few or even dozens of vehicles. This simple setup means you can become a Getaround host today.