Turo generates revenue through a commission-based model, charging variable fees to both hosts and guests for each transaction.

Turo's pricing structure is dynamic, with commission fees ranging from 15% to 45% based on factors such as vehicle type, rental duration, and location. The average commission is typically around 25%.

Additionally, Turo charges trip fees to guests, ranging from 2.5% to 100% of the overall rental price. These fees are disclosed upfront during the booking process. The company also monetizes through ancillary charges like young driver fees ($30-$50 per day for drivers under 25) and optional extras such as unlimited mileage.

A key advantage of Turo's business model is its asset-light approach, which sidesteps the big challenges of the traditional rental business model—high debt ($26B for Avis in 2023), costly insurance and maintenance (which limited Zipcar’s ability to scale), and the twin fleet management pitfalls of shortages, as with Avis during COVID, and oversupply, as with Localiza (Brazil, $5.83B in revenue in 2023) after COVID.

This asset-light model also allows Turo to scale rapidly and enter new markets with minimal capital investment with an Uber-esque, city-by-city playbook for ensuring density (Australia, Canada, France, UK so far).

Turo operates in the car-sharing and rental market, competing across several distinct segments with both traditional rental companies and tech-enabled platforms.

Enterprise, Avis, and Hertz dominate the traditional car rental market with 95% market share and approximately 2 million vehicles. These companies maintain their own fleets but face challenges with high debt loads, insurance costs, and fleet management inefficiencies. Enterprise in particular has actively opposed Turo's airport expansion efforts.

Getaround was Turo's primary peer-to-peer competitor before shutting down US operations in early 2025 after raising $750M. Uber is entering the space with Uber Carshare, leveraging its existing user base. Zipcar, acquired by Avis for $500M in 2013, pioneered hourly rentals but struggled to scale due to insurance and maintenance costs.

Traditional travel platforms are increasingly partnering with car sharing services. FlightHub integrated Turo's inventory for North American customers. Most significantly, Uber will integrate Turo's 365,000 vehicles into Uber Rent across five countries starting in 2025, potentially accessing Uber's massive user base.

The market shows clear consolidation trends, with traditional rental companies acquiring tech platforms (Avis/Zipcar) and failed independent attempts (Getaround, Avail). Turo's asset-light model and broad vehicle selection (1,600+ models) have helped it achieve profitability while competitors struggled, though growth has slowed from 213% in 2021 to 18% in 2023.

While the Enterprise/Avis/Hertz oligopoly controls 95% of the US car rental market with its fleet of ~2M cars, Turo’s opportunity is to win on customer experience.

In addition, Turo has tailwinds from the growing sharing economy and changing consumer preferences in transportation, and has the opportunity to grow and expand into adjacent markets like electric vehicle rentals, long-term rentals, and fleet management services.

Turo is well-positioned to capitalize on the continued growth of the sharing economy and evolving transportation needs.

As car ownership becomes less appealing, particularly in urban areas, Turo offers a flexible alternative that aligns with consumers' desire for on-demand access to vehicles without the burden of ownership.

The company can expand its user base by targeting millennials and Gen Z, who are more inclined to participate in sharing economy services. Additionally, Turo could explore partnerships with cities and transportation authorities to integrate its platform into broader mobility-as-a-service offerings, providing seamless intermodal transportation options for users.

With the rapid growth of the electric vehicle (EV) market, Turo has a significant opportunity to become a leader in EV rentals.

By incentivizing EV owners to list their vehicles on the platform and partnering with EV manufacturers, Turo can attract environmentally conscious consumers and those curious about EV technology.

This expansion aligns with global sustainability initiatives and could position Turo as an eco-friendly alternative to traditional car rental companies. Furthermore, Turo could develop specialized features for EV rentals, such as charging station locators and range calculators, enhancing the user experience for this growing market segment.

Turo can leverage its existing technology and user base to expand into adjacent markets like long-term rentals and fleet management services.

By offering extended rental periods, Turo could cater to users who need vehicles for weeks or months at a time, such as temporary workers or extended vacationers.

This move would allow Turo to compete with traditional leasing companies while maintaining its peer-to-peer model.

Additionally, Turo could develop fleet management tools for hosts with multiple vehicles, helping them optimize pricing, maintenance schedules, and utilization rates. This service could attract small businesses and entrepreneurs looking to build car-sharing micro-fleets, further expanding Turo's market reach and solidifying its position as a comprehensive mobility platform.

1. Decelerating growth and profitability challenges: Turo's revenue growth has dramatically slowed from 213% in 2021 to just 8% in 2024, while adjusted EBITDA dropped 46% year-over-year. This deceleration, coupled with a shift from operating profit to loss, suggests the model may be hitting natural scaling limits. The company's ability to maintain growth while achieving sustainable profitability remains uncertain.

2. Insurance liability exposure: Despite not owning vehicles, Turo could face liability for accidents or crimes committed using cars rented through its platform. High-profile incidents could damage Turo's brand and lead to increased insurance costs or stricter vetting requirements that make it harder to onboard new hosts. Turo's efforts to screen users and provide insurance may not fully mitigate this risk.

3. Supply volatility: Turo relies on individual car owners to supply inventory, making its selection and availability less predictable than traditional rental fleets. During high-demand periods like holidays, Turo may struggle to meet demand if hosts decide to use their own vehicles. This supply volatility could frustrate users and limit Turo's ability to capitalize on peak travel seasons.