Turo is an American peer-to-peer carsharing company. The company allows private car owners to rent out their vehicles via an online and mobile interface. In 2017, according to Turo, four million users had registered to use the service and 170,000 privately owned cars were available for rental. The company is based in San Francisco. In July 2019, the American holding company IAC invested $250 million in Turo, a deal that valued the company at more than $1 billion. In 2020, Turo reported raising an additional $30 million in VC funding; a second follow-up to its $250 million Series E round.
History
RelayRides was launched in Boston in June 2010. The peer-to-peer carsharing concept was inspired by similar online marketplaces such as Airbnb and eBay. In late 2010, the company expanded to San Francisco, where it is now headquartered. In 2012 it, launched nationwide in the US. Initially, renting a car through RelayRides required installing an in-car device that enabled GPS monitoring, remote unlocking, and smart card entry, similar to ZipCar. In 2012, Turo partnered with major automaker General Motors and their OnStar division with the goal of enabling renters to unlock GM cars with their mobile phones without installing additional technology. In 2013, however, RelayRides discontinued both its in-car device and its Onstar technology integration in favor of in-person key exchange. From 2010 to 2014, RelayRides received $52.5 million in funding from Canaan Partners, August Capital, Google Ventures, Shasta Ventures, and Trinity Ventures. In November 2015, RelayRides changed its name to Turo in order, the company said, to reflect the company’s shift away from short-term to long-term rentals. Forbes included it among 14 "hottest on-demand startups" in 2015, with a valuation of $311 million. In June 2018, Turo announced plans to offer a new in-car device allowing GPS monitoring and remote unlocking through the Turo app. In 2016 and 2017, Turo launched in three Canadian provinces: Alberta, Ontario, and Quebec. Also in 2016, Turo launched in the United Kingdom.
Forbidding car owners from listing their cars on other platforms
In 2019, Turo updated their terms of service to prevent hosts from sharing their car on any other car-sharing service. Turo declared that "failure to abide by this condition may result in fines, penalties, denial of a physical damage claim, removal of the vehicle from the Services, account closure, or other action, in Turo’s sole discretion." The change was formally implemented on July 15, 2019. Avoiding claims that this could be "failure to deal" or reduction in competition, they stated that their service "tends" to perform badly when dealing with other companies' booking software
In May 2013, the New York State Department of Financial Services issued a consumer alert, warning that RelayRides misrepresented insurance coverage for users of its program. New York issued a cease-and-desist letter ordering RelayRides to stop operations, and RelayRides suspended operations in the state. RelayRides was fined $200,000 for false advertising, engaging in unlicensed insurance activity, and other violations.
Services
Unlike traditional car-rental services, Turo does not own or maintain any cars. The company offers a platform by which car owners can rent their cars. Turo claims its platform reduces rental costs compared to traditional car rental services. People who wish to rent their cars can register their cars online to be rented by other Turo members. The car owner states when and where the car will be available. A Turo member who wants to rent a car reserves a specific time slot for the car online. Turo takes 10 to 35 percent of rental income, depending on the insurance coverage it provides the car owner.
