RelayRides moves in on airport rental market
RelayRides has expanded into U.S. airports, moving in on what has been a major revenue source for traditional car rental companies.
The three-year-old startup company, which is backed by Google Ventures, August Capital, Shasta Ventures and General Motors Ventures, announced today it will now allow car owners to list their vehicles at airports.
When a car owner registers their vehicle, the RelayRides website will automatically suggest the six closest airports where they could rent out their cars to travelers, CEO Andre Haddad wrote on the company's blog. Meanwhile, car renters can now search specifically for airports across the country.
The move by car-sharing services like RelayRides, FlightCar and Zipcar into airports is a potential disruptor to the traditional car rental industry. RelayRides prices are, on average, 20 percent to 30 percent cheaper than rentals offered by traditional companies, Haddad says.
RelayRides initially began as an hourly rental car sharing service for the Boston area and has since expanded its scope and geographic reach. The company, which is now headquartered in San Francisco, is available in cities across the U.S. and offers long-term rentals.
RelayRides, along with other startups in the new "sharing economy," has had its share of troubles. Last month, the company received a cease-and-desist letter from New York State’s Department of Financial Services (DFS), which charged RelayRides with “false advertising and violations of insurance law.”
RelayRides has since suspended rentals in New York while it works with the agency.
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This post was originally published on Smartplanet.com