Car Rental App Development Cost and Key Features

Updated 17 Jun 2024
Published 13 May 2024
Rahul Mathur 4554 Views
car rental app development

What if we say that you don’t need to own a car right now?

Are you surprised? The truth is that car rental is trending worldwide, and car rental business owners are seeing a huge increase in rental sales.

Mobile app development for the car rental business is one solution that has not only become a great source of convenience for users but has also raised a business worth a billion dollars. Since car rental services debuted on smartphone platforms, they have spread like wildfire.

If you are a car rental business owner wondering how to migrate your business onto an online platform, car rental app development is the right solution.

Here, we have created a blog covering every aspect of car rental mobile app development, from market size to crucial app features and various business models to the cost of creating a car rental app.

So, fasten your seatbelts and put on your first gear for your online car rental business journey with the perfect car rental app.

Car Rental App Development

Navigating through Car Rental Market Statistics

The car rental industry is not only consistent but also growing steadily. The market’s revenue indicates that there are enough opportunities to start a sustainable car rental app.

The real proof is that the global car rental market size for 2024 is $132 billion, projected to reach $220.10 billion by 2029 at a CAGR of 10.75% (2024–2029).

Market Size of Car Rental Industry

That’s just one stat; here are some other stats too that await you:

  • As the number of online car rental platforms increases, the popularity of the car rental industry is also rising. More than 60% of users have internet access, which is one of the significant factors in the growth of the car rental market.
  • Some of the top key players in the car rental industry are Avis Budget Group Inc., Sixt, Hertz Corp., Enterprise Holdings Inc. and Europcar Group.
  • By 2028, the car rental market’s 73% revenue will be through online sales.
  • In the United States, almost all car rental companies generate revenue by offering flexible rental options and loyalty programs.

All these statistics indicate a surge in on-demand car rental app development. The statistics we have seen were collected from different sources.

But do you know the reasons behind these statistics?

Here are the following:

  • Customer Preferences: The car rental app offers convenience and flexible transportation options.
  • Variety of Options: Using an on-demand car rental app, users can compare vehicle options and explore a suitable car rental deal for their needs.
  • On-Demand Needs: Most car rental app users rent vehicles at tourist destinations like France, Italy, Paris, and others. Car rental app development helps businesses generate more sales.
  • Macroeconomic factors are among the top growth factors in the car rental market. In simple terms, when the economy thrives, people spend on tourism.

Based on the information we have gone through in this section, it is enough to prove that mobile car rental app development is beneficial, especially when you want to grow your business or establish a startup as one of the top ideas for business.

On the other hand, one thing is also clear: why you should invest in car rental app development.

Benefits of Car Rental App Development for Business

Car rental mobile app development offers numerous benefits to businesses and customers.

On the one hand, customers have the convenience of booking vehicles for rent, and on the other hand, businesses can leverage on-demand car rental app development for business growth. Another key advantage is better business management.

So, let’s categorize the benefits into two as follows:

#A. Benefits of Car Rental App for Customers

  • Customers can get the rented vehicle at a desired location.
  • Using an app, renting a car is easy without any paperwork.
  • Customers can rent a car at an affordable price.
  • In case of a breakdown, customers get on-demand breakdown assistance.
  • While using a mobile app, there are no hidden charges.

#B. Benefits of Car Rental App Development for Business

  • Easy Entry into the Market

Via mobile car rental app development, you can easily enter the billion-dollar vehicle rental market, as most customers prefer mobile apps to book a car for rent.

  • Wider Reach

Using a car rental app, you can reach a wider audience quickly. Utilizing digital marketing channels such as social media marketing, ad campaigns, and others, you can easily reach your target audience.

  • Improved Customer Engagement

Car rental businesses can engage their customers the best with the help of mobile app development. You can offer personalized services, loyalty programs, booking schedules, deals, and others.

  • Analytics & Reporting

Mobile apps make data collection easy and work as feeds for analytics and reporting.

Using data, you can understand the booking pattern and customer behaviour, find out the peak booking time, and learn users’ preferences. This will help you make informed decisions for your business.

  • Streamlining Operations

Managing a car rental business is a challenge and requires too much effort. But it is easy with a car rental mobile app. You can keep an eye on all operations, have crucial information at your fingertips, and manage staff on the go.

  • Brand Recognition

The competition in the car rental market is high, and with an app, you can step ahead of the curve.

Here, the only condition is that your app must offer unique features that you can develop with the help of an experienced taxi app development services provider.

  • Customer Retention

Customer retention is an easy task with car rental app development. It allows us to stay connected with the customers 24/7 and offer them assistance regarding their queries. You can offer them coupons, deals and more.

Type of Car Rental Apps to Develop for Business

From the statistics and trends, there are multiple opportunities that you can unlock with the help of on-demand car rental app development.

Now, people prefer to take the car for rent, and the purpose can be anything from an office meeting to spending quality time with family at some tourist location.

So, launching an app application for a car rental business is fruitful. There are multiple types of car rental apps that you can develop for your business.

Trending Business Models ofCar Rental Apps

Here is a list of successful business models to consider for your business. Create a car rental mobile application accordingly.

1. Corporate Car Rental Services App

Corporate car rental is a dedicated car rental service for corporations that require frequent car rides and sophisticated chauffeur services. These apps are exclusive to corporations, and rides are fixed according to the pre-set schedule of corporations.

2. Self-Drive Car Rentals Services App

It is for customers who do not want to be chauffeured around and take pleasure in driving cars by themselves.

These types of apps are becoming famous among customers who used to self-drive cars to roam from one point to another and want to rent vehicles at affordable prices.

3. Out Station Car Rental Services App

For tour and travel, these outstation car rental apps are perfect. It is the best solution for businesses and families that must commute to distant places with the freedom to go anywhere they want.

4. Local Car Rental Services App

This car rental app’s business model covers everything, from airport pick-up and drop-off to a short trip around the city. It is the most convenient solution for customers around the world.


5. P2P Car Rental Services App

P2P or Peer-to-peer, car rental business model does not require a car fleet or assigned drivers. Anyone who has a car can use this service. It makes a larger community and helps people save money on their trips.

6. Long-Term Car Rental Services App

As the name suggests, this car rental service is for those who require a car for an extended period, such as months or a year. It is a great service for those needing a temporary car or who prefer renting over purchasing.

These are some of the most popular business models out there. However, creating a new business model and raising money completely depends on your vision and the expert mobile app developers who will help you fulfil your vision into a successful and lucrative business model.

However, if you want to go with the existing business models, you must offer the customers what they need to offer in their car rental mobile apps.  

Here comes the biggest key point for any successful mobile application.

The built-in taxi app features will provide more convenience to your customers, and they will prefer your app over any other application in the market if these features decide the dominance of any application, such as a car rental application.

develop a car rental app

Features to Consider for Your Next Car Rental App

Features will play a crucial role in creating the best experiences for car rental services in your business.

Remember one thing: features are one of the key factors influencing the cost of car rental app development.

Later, we will read in this blog how features influence the cost. But it’s time to read about the features.

Let’s consider some of the essential features of a car rental mobile app while developing a white-label car rental app.

Features of Car Rental Mobile App

#1. Car Rental App Features for Users

  • Easy Login

A login portal that can be accessed with the help of a social media ID simply adds extra stars in the user convenience column of a car rental application.

Car Rental App Development

  • Search & Select

It’ll give a sense of freedom to the customer of a car booking application. When your car rental app allows users to choose their preferred car, this could be a major selling point for a business model.

  • Ride Scheduling

Ride scheduling is one of the fantastic features that you need to consider for your next car rental mobile app. It will offer super flexibility to your customers for their needs.

  • Manage Booking

A user of a car rental app can manage all his/her bookings in one place within the app.

Car Rental App Development Solution

  • Ride-Fare Estimation

The ride-fare estimation feature within the car rental reservation app helps customers check the price even before taking a ride.  

  • Navigation and Tracking

A must-have feature that makes commuting time-saving and pleasant by accurately navigating customers to their destination.

  • Doorstep Car Delivery

Car rental services like self-driving offer the car to the customer at their doorsteps. This car rental platform feature seems like a little step, but it saves effort and time for the customers.

  • Multiple Payment Options

Having multiple payment options in the ride-booking app enables all customers with various preferred payment methods to make flawless payments.

car rental app payment solutions

  • Reward and Referral Programs

Reward and referral programs engage customers more. It will also help your business when customers publicize your app among their friends and family.

  • Push Notifications

Push notifications give important updates and alerts to customers so that they never miss any updates related to their car rental.

#2. Car rental booking app features for Driver Host

  • Easy Login

The feature of easy login with an email ID or phone number is also available to divers or hosts.

  • Check and Receive Request

The host or driver can check all booking requests at once and then accept the one that seems suitable.

  • Receive Payment

This feature allows a driver to receive payment from the customer via the car rental application itself.

Car Rental App Development

  • Trip Details

This feature gives you the ability to check trip details like pick-up point, destination, journey time, shortest way with less traffic, etc.

  • Driver Dashboard

This dedicated dashboard for the driver shows all the essential information, such as total completed rides, upcoming rides, total income, received feedback, etc.

  • Receive Feedback

A driver’s reputation is maintained by this feedback. Customers choose drivers according to their feedback and ratings. Hence, this feature allows drivers to receive feedback from customers.

  • Expense Log

A host or driver has this expense log, which keeps a log of all expenses like toll tax and other on-duty expenses, which helps them get reimbursement.

  • Navigation

Navigation comes as a handy feature for the drivers by enabling them to navigate to the customer’s destination without getting confused on the way.

Read Also: Motorbike Rental App Development Cost and Key Features

3. Car Rental System Features for Admin

  • Dedicated Dashboards

One of the crucial features of an admin is a dedicated dashboard. This feature shows all analytics and data to the admin, separated by categories.

On Demand Car Rental App Development

  • Manage Fleet

This feature allows admins to manage car fleets remotely via the app itself.

  • User Management

From this feature, admins can manage customers, drivers, hosts, and sub-admins and keep their activities under surveillance.

  • Fare Management

According to demand and supply, admins can manage the fare for the car rental service accordingly.

  • App Analytics

App analytics offers various types of essential data, which can be used to enhance the business and app operations of the admins.

  • Income Analytics

All the incoming and outgoing funds can be tracked and managed under this feature of a car rental mobile app.

  • Content Management System (CMS)

A content management system (CMS) is an intuitive and convenient tool for admins. It helps admins manage available content all over the car rental application.

car rental mobile app development

Advanced Features to Consider for a Car Rental App

The advanced features mentioned in this blog section will help you stand out from the crowd.  

Advanced Features of Car Rental Apps

Customer Relationship Management (CRM)

Features like CRM help admins maintain a lasting relationship with the customers of car rental applications with the help of email newsletters, loyalty programs, and many more.

Corporate Billing

Corporate billing is the exclusive feature for corporations, where they can manage all the car rental expenses.

Surge Charges

To maintain the demand-supply ratio, the surge charge feature can be used by the administrators.

Document Upload

This feature becomes very useful in Peer-to-Peer car rental services. With the help of this feature, the owner of a car can check and verify the license and other documents before renting the car.

In-App Camera

The in-app camera allows customers to capture the image of their documents that are to be uploaded for booking a car.

In-App Voice/Video Call

While booking a car of their choice, the customer may want to check the interior and exterior of the car just to be sure. This feature helps them to check the condition of the car.

Revenue Model

How car rental applications bring money to the bank is one of the most important topics of this entire blog. So it is time to talk about some of the famous and successful revenue models of car rental applications.

Having Own Car Fleet

This business model requires significant capital to kick off the business. This business requires having its car fleet.

In addition, assigning professional drivers is also necessary to manage the business. The earnings come from the profit earned from the fair prices of car rental. Businesses like Hertz, are following this business model and they are making billions every year.

Commission Based

In this model, professional drivers with their cars are hired and they are provided a car rental application platform from which they can receive rental requests and earn money.

In addition, anyone who has a car can also put their car on rest to earn some extra bucks. From this earned money, 15%–30% goes to the car rental app company. Currently, one of the top car-sharing marketplace companies, Turo is working on this business model.

User Behavior Tracking

It helps in understanding the user’s behaviour with the app, like how often they use it, when they frequently book the car for rent, what their payment habits are, and others.

SOS Button

It works as an emergency button that customers can press directly from their screen in case of an emergency while going from one point to another.

Car Rental App Development Process

You need expertise to develop an on-demand app, so the best way is to get it developed by experts. However, it is your right to know how to develop a car rental app.

So, here is the process that’ll give you an overview in easy steps:

#1. Market Research on Car Rental App Idea

Directly proceeding with car hire app development is not the right thing to do. You must first conduct market research on your car rental app development based on the existing market, future trends, end customer pain points, business models, monetization opportunities, and more.

It would be the best if you

  • Explore the app platforms like Google Play Store and Apple App Store for existing apps.
  • Explore the features of top car rental apps.
  • Go through the feedback given by the customers for existing car rental apps.
  • Find out what the top car rental apps in the market are.
  • Find out who your closest competitors are.

#2. Define your Car Rental App Development Requirements

Although you will collect most of the requirements from market and competitor research, explore it more, and make a clear set of requirements, it will benefit you by perfectly developing your car rental mobile application.

The requirements could be like this:

  • List of features and functionalities.
  • App development platforms: iOS, Android, cross-platform.
  • Visual aesthetics of an app: UI/UX, graphics, logos, banners, images, themes, etc.
  • Tech stack for developing an app like Uber cab booking and more.  

#3. Hire Taxi Booking App Development Company

For developing car rental apps like Turo, it would be best to hire a top mobile app development company because of the multiple associated advantages.

You can find multiple profiles over the internet using websites like Clutch, Upwork, and others.

So, compare all these based on experience, portfolio, projects done, team size, and experience of developers.

It will help you hire the best mobile app development team specialising in the car or taxi booking app industry, like Arka Softwares.

#4. Design and Develop your App

The on-demand app development company you have hired will design and develop your app. While they work on your app, you can focus on your core business activity.

However, keep an eye on the development process to see if it covers the requirements you’ve shared with them. Stay connected with developers for updates.

Trusted app development companies offer transparent communication processes.

#5. Test & Launch

Testing is one of the crucial phases and is more important than developing the app, as users prefer bug-free apps.

So, quality analysts will help you make your app free from all bugs and ensure its quality. Once the app is okay-tested, launch it on platforms like the Google Play Store or Apple App Store.

Use Case: Pearl Cab- Cab Booking App

cab booking app use case

We have created an excellent cab booking app, Pearl Cab, which was developed with the motive of providing ultimate convenience to users.

It includes all the latest features, such as live tracking, ETA calculation, in-app navigation, multiple payment modes, and other advanced features.

Stunning UI/UX is one of the key USPs of this app, that we can also develop for your app. Feel free to connect with us at any time.

cost to develop car rental app

Cost to Develop a Car Rental Mobile App

One of the top questions that a business owner asks before developing an app is, How much does it cost to develop a car rental app?

The whole game revolves around requirements and other factors. So, decide what your requirements are.

For example, a simple car rental app development cost ranges between $15,000-$25,000 for a single platform. If you need an advanced app, the cost will be based on its features and functionalities.

There are some deciding factors in app development cost. So, before you reach any conclusion, let’s examine these factors and how they influence cost estimation.

#1. Features

Features are the top cost-influencing factors for developing a car rental app. It works with several features, and their degree of complexity increases the overall complexity of the app.

So, if the complexity is high, the cost will be higher. So, the cost of a car rental app like:

App’s Complexity Development Cost
Simple Car Rental App Development Cost $15k onwards
Mid-Complex Car Rental Mobile App Development Cost $25k onwards
Advanced Car Rental App Development $35k onwards

#2. Location of Developers

Hiring costs play a crucial role in cost estimation, especially when hiring developers on a location-based basis. The hiring cost varies depending on the region you are hiring from.

Region App Developers Hiring Cost
Mobile App Developers in the USA $120-$150/ hr.
Mobile App Developers in the UK $100-$120/ hr.
Mobile App Developers in Europe $50-$100/hr.
App Developers in Australia $50-$100/hr.
Mobile App Developers in New Zealand $50-$100/hr.
Hire on-demand App Developers in India $25/hr. Onwards

#3. Team Size

For developing a robust and seamless car rental app, you need a mixed team of mobile app development experts, from graphic designers to quality analysts.

The team size depends on the project size—the larger the team, the larger the project. So, the overall hiring cost influences the mobile app development cost.

Suppose you need a team of 10 experts; then the hiring cost would be like this:

Number of Experts Hiring Cost (For each)
Junior Developers -2 $20/ hr.
Intermediate Developers-1 $25/hr.
Experienced Developers-1 $30/hr.
Team Lead -1 $50/hr.
Project Manager -1 $100/ hr.
UI/UX designers -2 $20/hr.
Quality Analysts-2 $20/hr.

#4. Type of Mobile App

The type of mobile app you need for your business will determine the cost accordingly. You can develop your mobile car rental app in three ways: Android app development, iOS app development, and cross-platform app development.

All these have their advantages, like native app development, which helps target platform-specific users, but with cross-platform app development, you can target all platform users with a single app.

Type of Mobile App Development Cost
Android App Development Cost $20,000-$30,000
iOS App Development Cost $20,000-$30,000
Cross-Platform App Development Cost $15,000-$25,000

#5. App Designing

UI/UX and other visual components determine user satisfaction, but they also contribute to car rental app development costs.

For example, if you want to develop an app like Getaround, it will need stunning UI/UX and eye-catching graphics, and its design cost would be around $10,000–$15,000.

Factor Cost Estimate Range
Basic App Design $5,000 – $10,000
Advanced App Design $3,000 – $30,000
Hourly Rate Varies based on experience and location
Number of Design Hours Custom based on project requirements
Total App Design Cost Calculated as Hourly Rate * Number of Design Hours

In terms of hourly hiring cost, you can hire experienced UI/UX designers from India at just an hourly cost of $15/hr.

#6. Project Timeline

Complex features generally require more development time. You have two options:

  • Longer timeline: This allows you to use a smaller team, but it takes longer to launch.
  • Bigger team: This gets you a faster launch, but it costs more due to additional manpower.

No matter which option you choose, a complex project will be more expensive than one requiring a shorter timeline.

How to Monetize a Car Rental App?

Every entrepreneur’s ultimate objective is revenue generation, and a car rental app is no exception. There are myriad ways to earn revenue from a vehicle rental app.

Let’s see what these are!

Rental Revenue

The primary revenue source from a car rental app is rent. You can decide the rent based on the class and category of the cars in your fleet. This will generate direct income for your business.


Like other on-demand apps, you can earn via third-party advertisements. You can set an advertisement fee to display ads of different businesses for a specific time duration.

Subscription Plan

Offering subscription plans to users is one of the best monetization strategies for your car rental app. Users can choose subscriptions according to their needs.

Value-added Services

You can also consider value-added services to generate revenue via your car rental mobile app. Here, you can provide additional services by collecting an extra amount from users, such as pick-up, insurance, extra-hours services, and others.

Car Rental Marketplace

You can earn a commission on each booking with the car rental marketplace. It will work as a one-stop destination for car owners who want to rent their vehicles, and customers can find multiple options.

Best Car Rental Apps in 2024

Name of the app Name Play Store Link App Store Link
turo app


Hertz car Rental app Hertz Car Rentals
Getaround app Getaround
AVIS car app Avis
Alamo Rent A Car app Alamo Rent-a-Car

It is always beneficial to refer to top mobile apps for developing an app for business. So, the same is true with car rental app development.

Here are the top 5 examples of car rental apps that you can refer to develop your app by understanding their business model, features, functionalities, and users.

#1. Turo

Developing an app like Turo is the best option for business. It is one of the most preferred car rental apps among users, where they can find a car for any occasion, from an office meeting to roaming to some tourist destination. Using this app, you can also rent EV Vehicles.

#2. Hertz Car Rentals

Another top name among car rental apps is- Hertz Car Rental. At Hertz, you can rent vehicles like Porsche, Ferrari, Lamborghini, Aston Martin, Tesla and more. It offers a wide range of luxury, sports, and hybrid vehicles for any occasion.

#3. Getaround

Apps like Getaround offer a new way to rent a car. You can rent cars based on their price by hour or day with no waiting time, and you can unlock the car using its app. It offers pickup, commercial, family car, and SUV ranges.

#4. Avis

Avis is one of the top brands that offers the best car rental services, including multiple deals like savings of up to 25%, flash sales, and more. One surprising fact about Avis is that you can also buy budget-friendly vehicles from it.

#5. Alamo Rent-a-Car

Another good app is Alamo, which you can refer to when developing your next car rental app. A user can rent a well-maintained vehicle. It offers various deals like Plan Ahead Specials, Last Minute Specials, Rent and Save, Free Rental Car Upgrades, and others.

Why choose Arka Softwares for Car Rental App Development?

So, are you ready to build a car rental app for business?

To develop a car rental app, you need an expert on-demand app development team; we are the perfect choice.

We have a year of presence in the mobile app development industry and a track record of providing solutions to different industries.

Taxi booking app development services are one of the premium services we offer businesses, such as car rental, taxi booking, and travel agencies.

We can provide the right resources to develop a cutting-edge car rental app. Feel free to contact us at any time.

car rental on demand app solution


Smartphones have transformed all aspects of our lives and the automobile sector is no exception. Car rental apps are getting more traction amongst users and app owners alike.

These apps help enterprises offer their services, stay in touch with their customers, and provide personalized promotions and offers as well. The car rental app is a win-win proposition for all the stakeholders.

Hopefully, we have provided all the essential information for developing your car rental app from scratch.

Developing a car rental app is indeed a brilliant app idea for your business, as it helps you address the dynamic user demands while also enabling you to establish solid market imprints and yield successful outcomes.

If you have decided to build a car rental application, then you need to understand what you are developing, why you are developing it, and what business outcomes you are expecting from it. You need a full-fledged car rental app if you want to venture into the rental car business.

If you have any doubts or concerns, feel free to call our experts or book a free online consultation. Our seasoned app developers are known for transforming your dreams into beautiful realities.


  • How to start a car rental business with an app?

    If you want to start a car rental business with a mobile app, congratulations on making the right decision. For starting the business
    1. First, you need to decide about car rental business models like B2C, B2B, and others.
    2. Research the market and target audiences.
    3. Choose a monetization model
    4. Hire an on-demand app development company
    5. Design and develop a dazzling app
    6. Test and launch the app
    7. Regularly update your app for better customer satisfaction.

  • How much does it cost to develop an app like Turo?

    Multiple factors determine the cost of developing a car rental app like Turo. So estimating the exact cost is a challenge. However, the ideal cost to develop an app like Turo may vary between $25,000-$40,000, considering specific business requirements.

  • How does the car rental app work?

    The prime objective of a car rental app is to offer convenience to its users for their car rental needs. In terms of its working – users can make their account, choose a location, choose a vehicle type, pay for the rent via multiple payment modes, and drive the car.

  • Do you develop car rental API?

    Yes, we can develop a car rental API for your business that covers all your needs. We provide all types of car rental app development solutions that will help you grow your business. For discussion, connect with us anytime.

  • How long does it take to make a car rental app?

    The time it takes to develop a car rental app depends on the complexity of the app and its number of features. If the app is complex, it may take 6–10 months, approx. But if you need an MVP for a car rental business, you can have it within 2–3 months.

Rahul Mathur

Rahul Mathur is the founder and managing director of ARKA Softwares, a company renowned for its outstanding mobile app development and web development solutions. Delivering high-end modern solutions all over the globe, Rahul takes pleasure in sharing his experiences and views on the latest technological trends.

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