The original concept of Airbnb is probably well known by now: You rent out your home via the platform and thus have the opportunity to earn some money while you're away. If this principle works for accommodations, why shouldn't it also be applicable to cars? A question that three (former) students at the Technical University of Munich also asked themselves – and in response, they founded TripCar, the self-proclaimed Airbnb for cars.
Driving your own car to the airport and leaving it in the parking garage for a few days is convenient—but also expensive. The standard parking rate at Munich Airport is €19 per day. And then the car sits in its parking space for days, taking up space, costing money, and not being used. All in all, not very effective. A smart solution is needed. Like the one offered by TripCar, the self-proclaimed Airbnb for cars.
TripCar is the brainchild of three young founders who met at the Technical University of Munich: Fabien Rozzi (28), David Gölz (25), and Nilson Silva (32). Together, they participated in a business plan seminar run by the UnternehmerTUM, where they emerged victorious with their business idea for an Airbnb for cars. Enough motivation to pursue this idea further.
TripCar: Park for free and earn money at the same time
Here's how TripCar works: Customers arrive in their own car and park it free of charge at the airport. They then offer their car as a rental car to other travelers via the platform while they're away. The advantage for car owners: They save on expensive parking fees and can also earn some extra money while they're away. The advantage for those renting a TripCar car: They can enjoy a price up to 50 % cheaper than with traditional car rental companies. Sounds like a clear win-win situation.
Nevertheless, there are, of course, challenges that the young founding team has to overcome. Chief among these was the challenge of convincing an insurer of their idea. Fabien from TripCar comments:
"Their own vehicle is still sacred to German drivers, so it's especially important to gain the trust of our customers with good insurance. Insurance companies have little experience with car-sharing models so far and are therefore rather hesitant. However, with perseverance, we were able to win over one of Germany's largest insurance companies. Now, all vehicles are insured with us. Our insurance covers any damage during the rental period, and your own car insurance remains unaffected."
In addition to 100 percent insurance coverage, TripCar also aims to impress car owners with its all-round service: The entire rental process is handled via the platform. This includes transferring the car owner to their terminal, reviewing the rental agreement, key handover, and checking the vehicle's condition. Furthermore, each vehicle undergoes a free car wash before being returned to the owner.
The idea of an Airbnb for cars isn't new, by the way: FlightCar from San Francisco has been on the market for several years and now has 12 locations across the US. The business model was so successful that Daimler acquired the company for an estimated $100 million. But there's no need to reinvent the wheel every time:
"Just because someone else on another continent had the same idea is no reason not to implement it in Europe. In Germany, we are the first."
This is Fabien’s confident opinion.
The vision: Making mobility more of an experience
TripCar is currently not yet active on the market, but is still in the planning phase. The young startup is currently planning to be operational in early 2017. However, the founders aren't holding back on their idea, but are actively presenting it. Among other things, they were able to impress at the "Elevator Pitch" in Stuttgart, taking third place.
The company's founders are optimistic about the chances of turning their business model into a successful one. The market is there; after all, 100,000 cars are parked at Europe's largest airports. And demand for rental cars is also promising: At Munich Airport alone, annual sales in the double-digit million range are generated. They are also convinced that “Sharing Economy” increasingly spread and will permanently change the consumer behavior of many people. The young founders always keep their vision firmly in mind, as Fabien explains:
"Companies like Uber, Airbnb, and Blablacar have been able to assert themselves. We want to be the largest marketplace, offering the highest quality of service, enabling travelers to share their cars with each other, and we remain committed to our vision of making mobility a more enjoyable experience."
We're curious to see whether Germans will be willing to temporarily rent out their favorite thing—the car—in the future. At the very least, they're already letting "strangers" use their own four walls—so the signs point to success.
