Peer-to-Peer vs Fleet-based Car Sharing - Get More Insights!

Peer-to-Peer vs Fleet-based Car Sharing - Get More Insights!

Posted on Jul 19th 2021

Car sharing is the most conventional rental platform that helps people to access cars based on requirements. This trend is more suitable for drivers who want to find and book cars quickly than traditional car rentals. With car sharing, you get transparent pricing and can enjoy lower rates for all the bookings.

The aversion toward the public and huge transition due to the COVID-19 pandemic will likely remain for even years, but that doesn’t mean that everyone who can afford to buy a car will do so!

What are the Different Types of Car Sharing Services

There are two major types of car-sharing services which include fleet-based and peer-to-peer car sharing. Fleet-based car-sharing services are nothing but own vehicles that users share for the service. Whereas in Peer-to-peer car rental platforms people don’t own their vehicles.

Fleet-based Car Sharing

The pioneer in Fleet-based car-sharing companies was Zipcar and their methods got adopted by traditional rental companies like Enterprise. As every company has its own pros and cons based on its own policies, let's discuss a few of them here:

Advantages of Fleet-based Car Sharing

  • Professional maintenance vehicles - With this car-sharing service, drivers can stay assured of the vehicles as they are professionally maintained by services.  


  • Car availability - In the fleet car company, drivers can enjoy the perks of convenient car availability timings.

  • Hourly rates - Few companies offer hourly rates for people who need a car for a specific time or errands to get an appointment.  


  • Peace of mind - Drivers can be more comfortable as they are driving a car that’s not owned by another person.            

Disadvantages of Fleet-based Car Sharing

  • Non-transparent pricing - With Fleet car sharing, you may not get transparent pricing and end up with additional expenses like membership fees. Few companies also have 

dynamic parking charges which keep constantly changing that leaves difficult budgeting.

  • Less travel friendly - As most of the fleet car services are turning toward local commuters and residents more than travelers. The lack of airport access can be more challenging for visitors to coordinate with the fleet.          

  • Limited selection - Fleet-based car services have a very limited range of vehicles, so it’s quite difficult for users to find a car that matches their specific requirements. 

Peer-to-Peer Car Sharing

This model is particularly for millennials, who use public transportation more but occasionally hire a car for shopping, or travel destinations that are less accessible.                 


Peer-to-peer car-sharing is not a new car-sharing model but it's widely popular with companies like Avail and Turo. Here are some important factors to consider in peer-to-peer car rental companies:

Advantages of Peer-to-Peer Car Sharing

  • Low prices - Many peer-to-peer companies offer services at very lower rates to drivers as they don’t require the cost of maintaining vehicles.

  • Airport access - Most of the peer-to-peer car share services offer their user's airport access and allow car owners to travel out of town within some frequency.  

  • Transparent pricing - The peer-to-peer car-sharing model allows users to have more transparent pricing and helps them to avoid any additional or unexpected charges.

  • Vehicle variety - Peer-to-peer car-sharing services offer a huge variety of vehicles which allows users to select cars that best match their needs. 

   Disadvantages of Peer-to-Peer Car Sharing

  • Vehicle consistency - While some car drivers can select the vehicle they drive, few others prefer cars with specific models.


  • Increased maintenance - Car owners have to maintain vehicles clean and ensure the safety of travelers. They get paid for all the bookings, so they can minimize extra costs accordingly.

Challenges of companies in the car rental industry

According to Accenture’s reports, the Peer to Peer market will reach US$21 billion by 2030 in China, the U.S., and Germany alone.  

The P2P model is not very popular like traditional rental models, but its advantages set out rapid acceptance across the users. Here is the list of challenges that the P2P car rental marketplace is facing in real-time as follows:          


  • First, there are major trust issues prevailing across the P2P marketplace. The car owners have to handle drivers with different driving habits and styles. 

  • Secondly, In the P2P model, cars have to be returned to the exact location where they were picked up which can be tough for certain users.    

  • Finally, like any other digital complexities in businesses, P2P car companies generally face regulatory pushback. For instance, U.S. states demand P2P car-sharing companies to pay the same amount of taxes and follow safety needs as traditional companies.

Final Remarks!

While there are so many challenges and complexities prevailing in the car-sharing industry. Both Peer-to-Peer and Fleet-based Car Sharing have their own pros & cons across the country. Therefore, you need to stay equipped with the latest trends and advancements in running car rental businesses to mark the way forward.