car rental sites have been offering a service called “car rentals atlantic” for the past couple of years.
Now, there’s a new startup that’s competing with the big three car rental companies: Airbnb and CarRental LA.
The company called CarRentalsLA launched last month, and it’s aiming to take advantage of Airbnb’s popularity to boost car rentals for people in LA and surrounding areas.
“The only reason people would pay $300 to rent a car from us is because we know our clients are going to be there and want to rent cars,” said CarRentsLA cofounder Mark Davis.
Davis has worked with Airbnb for several years, and he’s also the founder of the site.
CarRENTALSLA’s first car rental site in LA was launched in February and has been able to expand rapidly over the past few months, as more people signed up to the service.
Airbnb is currently expanding its LA car rental market to include the city, Davis said.
“We have people who are willing to pay $400 a month for a car that’s going to run a couple of hours, but it’s going be a very fast-paced commute,” Davis said, adding that Airbnb offers the same amenities as car rental services.
Davis said that the company has partnered with a number of other companies to build the service, including the LA Auto Rentals Alliance, LA Automobile Association, and Car Rental LA, but that he hasn’t yet met with the partners about any specific plans.
Car rentals at LA will be offered through the car rental portal CarRanch LA, Davis noted.
“It’s really a nice idea to have an integrated platform that is being built right now with a bunch of other people who have the same vision of what they want,” Davis continued.
Davis says that the service will allow people in Los Angeles to rent out their cars to guests and drivers for the same price.
“That’s why the idea of the car rent atlantis, we’re building that to make that happen,” Davis explained.
Airbnb has built a business model on being able to rent your car for as little as $15 per day and offer it to drivers for $10 per day, Davis added.
He noted that Airbnb’s business model can be profitable for the company, but Davis isn’t overly concerned about the company’s ability to stay profitable.
Airbnb and the car rentals atlatlantic website are both owned by Airbnb, but CarRrentalsLA is owned by CarRanchesLA.
Airbnb recently announced that it is working with Lyft to help its ride sharing service expand beyond its original location in New York City.
Airbnb announced last month that it would allow Lyft to operate a “CarRent” car rental service in LA, and the company said it would also allow Lyft drivers to rent their vehicles in the city.
The city’s transportation commission approved a request by the New York Taxi and Limousine Commission (NYCTC) to allow Lyft, Uber, and Sidecar drivers to operate in the LA region.
Airbnb’s CarRantaysLA website is currently undergoing testing, with users able to book a car rental for up to three people for as low as $35 per day.
Davis explained that he thinks it’s a very good idea for CarRantsLA to partner with Airbnb and Lyft.
Davis noted that there are other car rental options in LA that have been built on Airbnb’s model, such as the LA Automotive Alliance’s Car Rantays LA.
“I think it’s very possible that it could be a great business model for both of them,” Davis added, noting that CarR RentalsLA could potentially benefit from a similar model that Airbnb has had in its own cities.
“They’ve had a really great success in the area and they could be very profitable if they were able to do that,” Davis noted, adding, “We’re hoping to be able to help them out.”
The service is still in its early days, but so far the platform has been extremely popular.
As of March 15, the site had nearly 17,000 car rental listings in the Los Angeles area, according to the website’s stats.
Davis also said that there was a lot of competition among the sites competing to serve the LA area.
“A lot of people in the market have very different ideas about what they’re going to do, and that’s the challenge for us,” he said.
Davis added that he’s confident that Car RentsLA will be able continue to grow.
“When we started this, we had to compete with the largest company in the world, Airbnb,” Davis stated.
“Now, we have the best car rental in the country, and we’re doing it by a lot more than Airbnb.”