Make money by renting out your car

Over the past few years the South African unemployment rate and economy has deteriorated. Looking for alternative ways to make money, Alina Hardcastle explores the latest transport trend, RentMyRide.

The new service, which is part of the worldwide rental platform called “Collaborative Consumption” aka the “share economy”, is the first and only peer-to-peer car rental company in South Africa. It gives car owners the opportunity to earn extra cash by renting out their own vehicles.

Peter Puren, CEO of RentMyRide, says that the ‘sharing economy’ model is a movement born not only out of necessity but “just plain old common sense”. He adds: “It’s time to start utilising your assets to their fullest extent.”

How it works

The car rental service will not only assist you in making a profit, but will grant you full control throughout the process as once the car is added to the platform you approve the renter, the rental duration and the daily price which is spilt between you (70%) and RentMyRide (30%).

Puren informs us that their fee goes towards running their website; including continuous updates on the platform; customer service to assist renters and owners; 24/7 road side assistance for renters anywhere in South Africa; and marketing the owner’s vehicle to the public.

Security measures

And before you allay your fears about someone making off with your car – RentMyRide has thought of this too. They use their fee to prop up their R10 million liability insurance policy that protects users against accidents, property damage up to the actual rental value of the vehicle and lawsuits for injuries and theft for the duration of the rental. The insurance cost (which differs from car to car) will be added to the renter’s fee.

Renters will also go through a strict screening process in order to confirm identification. Puren says: “After being in operation for more than a year no car has ever been stolen.” He adds that the team will hold a deposit from each renter (R5000 for standard cars and R10, 000 for luxury vehicles), which is used to cover any damage or additional charges e.g. extra mileage, fuel and cleaning fees.

RentMyRide is getting hundreds of cars listed throughout South Africa, but the platform’s current focus is Cape Town and Johannesburg. Puren concludes: “Car owners should see this as a business opportunity where they can easily make a return on investment of 25%. We’ve tried to make it easy for any person within South Africa to start their own car rental business [as] all you need is just one car, with the option of expanding your business as you see fit.”

This article was first published on Justmoney.