Startup Turns Anyones Car Into Part Of A Zipcar-Like Fleet

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Name: Getaround

Quick Pitch: Getaround lets you rent a car from someone nearby.

Genius Idea: Offering hourly car rentals without purchasing a single vehicle itself.

Companies like Zipcar and Hertzs Connect have proven there is a market for alternatives to car ownership, but they fall short of meeting everyones price point and needs. In many markets, Zipcar charges an $82-per-day rate in addition to an annual fee, and the service isnt offered outside of cities.

Getaround fixes both of these problems by allowing its users to rent their neighbors cars. Its like an Airbnb for vehicles. Car owners choose their own hourly rental rates and schedules all they need to do to make their cars Getaround ready is install a free carkit, which functions as both GPS tracker and key mechanism.

Renters can sign up free of charge. After theyre approved by the owner of the car theyd like to rent, they pick up it up using an iPhone app that unlocks it. Insurance (provided by Berkshire Hathaway) and 24-hour roadside assistance come with the rental fees, which most owners set at between $3 and $15 per hour.

Avery Lewis, Getaround head of product, says some renters have used the service as a way to safely lend their cars to roommates who dont have insurance. At the other end of the spectrum, one woman went on vacation with her car available for rent during her abscence and then was able to extend her vacation using the proceeds.

If Getaround catches on, its number of available rentals has the potential to make Zipcars 8,500 cars look diminunitive. And it could reach areas that are too rural to be viable for a company like Zipcar all while taking a 40% cut of rental fees on vehicles that it doesnt own.

As with most good ideas, community car sharing isnt something just one company is pursuing. A startup called RelayRides, which counts Google Ventures and August Capital among its investors, is pursing a similar idea. The company already has cars available in San Francisco and Boston.

Getaround has functioning services in San Francisco and San Diego, and it officially launched its national expansion at TechCrunch Disrupt on Tuesday. It also won the competitions $50,000 grand prize.

The startup will add that cash to $125 million in funding as it courts a critical mass of car owners beyond the Bay Area.

Series Supported by Microsoft BizSpark

The Spark of Genius Series highlights a unique feature of startups and is made possible by Microsoft BizSpark, a startup program that gives you three-year access to the latest Microsoft development tools, as well as connecting you to a nationwide network of investors and incubators. There are no upfront costs, so if your business is privately owned, less than three years old, and generates less than U.S.$1 million in annual revenue, you can sign up today.

More About: car sharing, Getaround, relayrides, zipcar

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