In 2023, Turo reported revenues of $880 million, representing year-over-year growth of 18% from $747M in 2022.

Turo's business experienced significant growth during the COVID-19 pandemic, with revenue increasing 213% in 2021 to $469 million. This surge was driven by several factors, including supply constraints at traditional rental companies like Enterprise, Avis and Hertz, who sold off large portions of their fleets to capitalize on high used car prices during the pandemic.

The resulting shortage of rental vehicles, combined with pent-up travel demand as restrictions eased, created ideal market conditions for Turo's peer-to-peer model.

Turo's 2023 deceleration reflects a more stable competitive environment as traditional rental companies have rebuilt their fleets and pricing has become less volatile.

Turo's most recent private valuation was $1.25 billion, established during its Series E funding round in 2019 led by IAC and other investors. Based on the company's 2023 revenue of $880 million, this implies a revenue multiple of approximately 1.4x.

Turo's most recent confirmed valuation was $1.25 billion following its Series E funding round in 2019. The company has raised a total of $523 million across 16 funding rounds.

Key investors include IAC/InterActiveCorp (39.2 million shares), G Squared (16.2 million shares), and August Capital (10.3 million shares). Other notable investors include Canaan Partners and Kleiner Perkins.

Car sharing pioneer Zipcar (2000, acquired by Avis for $500M in 2013) found product-market fit with hourly car rentals conveniently parked in urban neighborhoods, which—combined with Airbnb’s (2008) breakout success as an asset light, peer-to-peer marketplace—inspired the 2009 founding of Turo and Getaround (went public via SPAC, delisted in 2024) as peer-to-peer, contactless, hourly car rental that you could easily book & unlock with your phone.

In 2012, Turo lowered the barriers to signing up and generating revenue with your car by removing the requirement to install hardware in your car, building out owner and renter identity & reputation and switching to daily rentals to create the right unit of demand for the marketplace.

Turo's core product is its online marketplace, available via website and mobile app, where hosts can list their vehicles and guests can search for and book rentals.

Turo's product suite caters to both individual car owners looking to offset ownership costs and entrepreneurs building car-sharing businesses, as well as a diverse range of renters seeking alternatives to traditional car rental services.

The platform operates in over 7,500 cities across the United States, Canada, the United Kingdom, France, and Australia, with over 350,000 active vehicles, 175,000 active hosts, and 3M active users.

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 competes with traditional car rental companies, other peer-to-peer car-sharing platforms, and alternative transportation services. The competitive landscape can be divided into three main categories.

This segment includes well-established players like Enterprise, Hertz, and Avis. These companies own and maintain their own fleets of vehicles, typically offering standardized rental experiences at fixed locations.

Turo differentiates itself from these competitors by providing a wider variety of vehicles, often at lower prices, and offering more flexible pickup and drop-off options.

However, traditional rental companies have the advantages of brand recognition, established airport presence, and corporate partnerships.

Turo's peer-to-peer model allows it to operate with lower overhead costs and offer a more personalized experience, but it faces challenges in matching the consistency and reliability of traditional rental fleets.

In this category, Turo's main competitor is Getaround. Both companies operate on similar peer-to-peer models, connecting car owners with renters.

Getaround distinguishes itself by focusing on shorter rental durations and offering universal keyless entry system for all its vehicles.

As of September 2022, Getaround reported 1.7 million unique guests and 72,000 active cars across 8 countries, compared to Turo's 2.9 million active guests and over 160,000 active hosts as of December 2022.

Turo has a larger presence in North America, while Getaround has a stronger foothold in Europe. The competition in this space centers on user experience, pricing, and the ability to attract and retain both hosts and guests.

This broader category includes ride-sharing services like Uber and Lyft, as well as car-sharing services like Zipcar.

While not direct competitors, these services can be substitutes for car rentals in certain situations, particularly for short trips or urban use.

Zipcar, owned by Avis Budget Group, offers a membership-based model with hourly or daily rentals, primarily serving urban areas and college campuses. It reported around 1 million members and 12,000 vehicles as of 2021.

Turo competes with these services by offering more flexibility in rental duration and vehicle choice, often at competitive prices. However, for very short-term or spontaneous needs, ride-sharing or hourly car-sharing services may have an advantage in convenience.

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. Regulatory uncertainty: As a disruptor in the car rental space, Turo faces ongoing legal challenges from airports, cities and traditional rental companies arguing it should be regulated like other car rental businesses. Unfavorable rulings could force Turo to obtain costly permits and pay fees in key markets, significantly impacting its asset-light model and cost structure. While Turo maintains it's a tech platform, not a rental company, this regulatory ambiguity creates uncertainty for its business model.

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.