Peer-to-peer carsharing

Short description: Private car owners sharing or renting their vehicles temporarily to others

Peer-to-peer carsharing (also known as person-to-person carsharing and peer-to-peer car rental) is the process whereby existing car owners make their vehicles available for others to rent for short periods of time.

## Contents

* 1 The concept
* 2 Enabling legislation
* 3 Prohibitions
* 4 Ecological impact
* 5 See also
* 6 Notes and references

## The concept

Peer-to-peer carsharing is a form of person-to-person lending or collaborative consumption, as part of the sharing economy.[1] The business model is closely aligned with traditional car clubs such as Streetcar or Zipcar (est. in 2000),[2] but replaces a typical fleet with a ‘virtual’ fleet made up of vehicles from participating owners.[3] With peer-to-peer carsharing, participating car owners are able to charge a fee to rent out their vehicles when they are not using them (cars are driven only 8% percent of the time on average).[4]

Participating renters can access nearby and affordable vehicles and pay only for the time they need to use them.[5][6] In 2011, an American research company Frost & Sullivan calculated that an average Getaround renter saved over $1,800 per year by using a car-sharing service over owning a car for the same number of miles driven.[7] In 2014, the United States House Committee on Small Business stated that “buyers pay less than they would without the service, and sellers earn more--if only because they often would not be able to bring their service to market without the peer-to-peer platform.”[8]

Businesses within this sector screen participants (both owners and renters) and offer a technical platform, usually in the form of a website and mobile app, that brings these parties together, manages rental bookings and collects payment.[9] Businesses take between 25% and 40% of the total income, which covers borrower/renter insurance, operating expenses, and roadside assistance.[3] In return they provide roadside assistance, customer service and vets renters with DMV checks.[9]

As with person-to-person lending, the Internet and the adoption of location-based services as well as the spread of mobile technology have contributed to the growth of peer-to-peer carsharing.[10] Also, millennials are less attracted to car ownership as previous generations.[11]

## Enabling legislation

Although many personal auto insurers in the U.S. exclude coverage for commercial use of insured vehicles either through a livery and public transportation exclusion or a specific "personal vehicle sharing program" exclusion,[12] In 2011, California was the first U.S. state to pass Assembly Bill 1871, which allowed private car sharing.[13] Several other states in the U.S. have passed legislation allowing individuals to share their cars without risk of losing their personal car insurance. These include California, Oregon, Washington, Maryland,[14] and Colorado.[15]

## Prohibitions

In the U.S., New York is the only state that does not allow peer-to-peer car rental because the owner cannot exclude him or herself from liability to a renter.

## Ecological impact

Peer-to-peer car sharing has the potential to reduce the number of vehicles on the road and lower pollution levels.[16]

## See also

* Carsharing
* Car pooling
* Collaborative consumption
* Person-to-person lending
* Sharing economy
* Shared transport
* Sustainable transportation
* Peer-to-peer renting

## Notes and references

1. ↑ Fishman, Elliot, ed (2019). The Sharing Economy and the Relevance for Transport. Academic Press. p. 102. ISBN 978-0-12-816210-1. https://books.google.com/books?id=tHe7DwAAQBAJ&pg=PA102.
2. ↑ Berger, Suzanne (2013). Making in America: From Innovation to Market. MIT Press. p. 191. ISBN 9780262019910. https://books.google.com/books?id=raJ5AAAAQBAJ&pg=PT191.
3. ↑ 3.0 3.1 "Online Rental Markets Are Thriving". Yale School of Management. December 8, 2010. https://som.yale.edu/news/news/online-rental-markets-are-thriving.
4. ↑ Pozin, Ilya (July 19, 2012). "10 Greatest Industry-Disrupting Startups of 2012". Forbes. https://www.forbes.com/sites/ilyapozin/2012/07/19/10-greatest-industry-disrupting-startups-of-2012/.
5. ↑ Gansky, Lisa (2010). The Mesh: Why the Future of Business Is Sharing. Penguin. p. 146. ISBN 9781101464618. https://archive.org/details/meshwhyfutureofb00gans.
6. ↑ Karmann, Markus (2011). The Rise of Collaborative Consumption on the Example of Couchsurfing. GRIN Verlag. p. 5. ISBN 9783656189190. https://books.google.com/books?id=twKF_sjVIe4C&pg=PA5.
7. ↑ "GetAround Connects Car Owners And Renters With P2P Marketplace". Business Insider. June 7, 2011. https://www.businessinsider.com/getaround-connects-car-owners-and-renters-with-p2p-marketplace-2011-6.
8. ↑ "The Power of Connection: Peer-to-peer Businesses". United States House Committee on Small Business. January 15, 2014. https://www.govinfo.gov/content/pkg/CHRG-113hhrg86266/html/CHRG-113hhrg86266.htm.
9. ↑ 9.0 9.1 Duffer, Robert (August 29, 2018). "With carsharing, your car can make – instead of cost – you money". https://www.chicagotribune.com/autos/sc-auto-cover-0830-car-sharing-overview-20180827-story.html.
10. ↑ Ostrofsky, Marc (2013). Word of Mouse: 101+ Trends in How We Buy, Sell, Live, Learn, Work, and Play. Simon and Schuster. p. 113. ISBN 9781451668421. https://archive.org/details/wordofmouse101tr0000ostr.
11. ↑ Bell, Linda (May 11, 2019). "Don't want to buy a car? Rent your neighbor's". Fox Business. https://www.foxbusiness.com/small-business/dont-want-to-own-a-car-rent-your-neighbors.
12. ↑ International Risk Management Institute - Personal Vehicle Sharing Program Exclusion Endorsement
13. ↑ Whittaker, Richard (March 15, 2013). "SideCar to City: Have App, Will Travel ... to Court". The Austin Chronicle. https://www.austinchronicle.com/news/2013-03-15/sidecar-to-city-have-app-will-travel-to-court/.
14. ↑ Elliott, Christopher (October 13, 2018). "The War Between Car Sharing And Rental Companies Just Escalated. Here's Why You Should Care". Forbes. https://www.forbes.com/sites/christopherelliott/2018/10/13/the-war-between-car-sharing-and-rental-companies-just-escalated-heres-why-you-should-care/.
15. ↑ "Peer-to-peer Motor Vehicle Sharing Program". Colorado General Assembly. May 30, 2019. https://leg.colorado.gov/bills/sb19-090.
16. ↑ "Solar Today". Solar Today (American Solar Energy Society): 77. 2002. https://books.google.com/books?id=8TZWAAAAMAAJ.

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