Exploring Turo's Innovative Peer-to-Peer Car Rental Business Model

The chapter dives into the unique business model of Turo, a platform connecting vehicle owners with renters, enabling individuals to build micro-businesses around their cars. It highlights the scalability and success opportunities for hosts, drawing comparisons with other marketplaces like Airbnb and Uber.

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In this episode, CJ interviews Chuck Fisher, CFO of Turo, the world’s largest peer-to-peer car rental marketplace, doing more than $800 million in revenue per year. Chuck breaks down the company’s business model, what separates it from traditional car rental companies, and how it differs from marketplaces like Airbnb and Uber. He explains how Turo helps people build micro businesses and sheds light on the company’s total addressable market and why it shouldn’t be compared to its offline analog. He also talks about the company’s take rate, what substantiates it, and the benefits you may reap from keeping the take rate as low as possible, including the story about Turo’s own success in 2021. Chuck describes Turo’s Risk Score system, the data used in this, and how they use this information to market back to the best prospective customer. He also shares his firsthand account of the fall of Lehman Brothers and what he took away from it.

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@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(03:14) Sponsor - Maxio | NetSuite

(05:59) The Business Model of Turo

(10:59) The Sign of a Healthy Marketplace

(13:31) Turo Vs Airbnb Vs Uber

(16:58) Sponsor - Mercury | Leapfin

(18:54) Turo’s Total Addressable Market

(25:16) Why Marketplaces Shouldn’t Be Compared to Offline Analogs