I think almost everyone has had that classic car rental experience. You get off a plane, your tired, and you just want to get to your hotel. But first you gotta take a shuttle bus to some huge off-site parking garage, wait in a long line, and then talk to a person behind a counter who tries to upsell you on insurance you probly don’t need. And after all that, you dont even get the car you booked, you get a “similar” one. It’s just part of traveling, right?
Well, maybe not anymore. There’s this new-ish company called Turo thats been making a lot of noise. You’ve probably heard of it, people call it the “Airbnb for cars.” And it’s got a lot of people wondering, is this the end for the big guys? Will Turo actually hurt national rental car operaters like Hertz, Avis, Enterprise, and all those other ones.
It’s a really good question. We’re in the transportation business, we see this stuff happening all the time. How people get from point A to point B is changing so fast. It’s not just about shuttles or taxis anymore. And Turo is a big part of that change. So lets dig into it and see if the big national chains should be worried.
What is Turo Anyways? (And Why Do People Like It?)
So first, what even is Turo. It’s not a rental car company in the old sense. Turo doesn’t own a giant fleet of matching white sedans. Instead, it’s a “peer-to-peer” car sharing platform. That just means normal people, like your neighbor, can list their own personal car on the Turo app. And you, a traveler, can rent it from them directly.
The person listing the car (the “host”) gets to make some extra money from a car that might just be sitting in their driveway. And the person renting (the “guest”) gets a different kind of rental experience. This whole idea has exploded in popularity, and there are a few big reasons why people are choosing Turo over, say, Enterprise.
The Number One Reason: The Cars!
This is honestly the biggest draw for a lot of people. When you go to Hertz, your options are pretty boring. Compact, Mid-size, Full-size, SUV, or a Minivan. They all kinda look the same.
With Turo, the options are basicly endless. You can rent anything.
- Want a big 4x4 truck to take up to the mountains? You can find one.
- Want to drive a Tesla Model S for a weekend just to see what it’s like? No problem.
- Want a flashy convertible sports car for a trip to Miami? Turo has hundreds.
- You can even find weird stuff, like classic VW vans or super high-end luxury cars like a Porsche or a Lamborghini.
You’re not renting a “category,” your renting a specific car. You see photos of the exact car you’ll be driving. For people who actually like cars, or for someone who needs a very specific type of vehicle (like a truck with a hitch), the national chains just cant compete with this.
It Can Be Cheaper (Sometimes)
Price is always a big deal. Turo can often be cheaper than a traditional rental, but not always. Becuase hosts set their own prices, you can find some really good deals, especially if you’re renting for a longer time like a week or more. Or if you’re renting in a neighborhood instead of an expensive airport location.
But you do have to be careful here. Turo has fees, just like everyone else. There’s a trip fee, there’s different levels of insurance you have to pick, and some hosts add delivery fees. So you have to look at the total price, not just the daily rate. But still, a lot of the time, it works out to be less money.
The Conveinience and Experience
Turo just feels different. For one, you can find cars everywhere. You dont have to go to the airport. You can find a car thats parked just a few blocks from your apartment, which is super useful if you just need a car for a day trip.
Plus, a lot of hosts offer delivery. They’ll drop the car off right at your hotel or even at the airport arrivals curb. That means no shuttle buses and no lines. That is a huge, huge plus.
And then there’s the Turo Go feature. Some cars have this, where you can just unlock the car with your phone. You dont even have to meet the host. You just find the car, unlock it, and the keys are inside. It feels pretty futuristic and its so much faster than the old counter experience.
The Problems with Turo (It’s Not All Perfect)
Okay, so Turo sounds pretty great. But if it was perfect, everyone would be using it and Hertz would be out of business. There are some big downsides, and these downsides are exactly why the national rental companies are still around.
The Biggest Risk: Reliability
This is the number one complaint you hear about Turo. A host, who is just a normal person, can cancel your trip. They can cancel it a week before, or they can cancel it an hour before. Imagine you land at the airport with your whole family, ready for vacation, and you get a notification that your car is no longer available. What do you do then? You have to scramble to find a last-minute rental at the counter, which will probably cost a fortune.
This almost never happens with a big national company. Enterprise and Avis have thousands of cars. If the car you booked isn’t there, they’ll just give you another one. They might even upgrade you. That reliability is what you’re paying for.
Insurance is Super Confusing
This is the other big headache. When you rent from Hertz, the insurance is simple. You either use your personal policy, your credit card’s rental coverage, or you buy their waiver. It’s all very clear.
Turo’s insurance is… complicated. Your personal car insurance almost definitly does not cover you when you drive a Turo car, because it’s a car-sharing service. Your credit card company probably doesn’t cover it either. So you have to buy one of Turo’s protection plans. They have a bunch of different levels, with different deductibles that can be really high, like $3,000.
And if you do get in an accident, it can be a way bigger mess. You’re dealing with Turo’s claims department, the host’s personal insurance, and your insurance. It’s not as simple as just filling out a form at the rental counter.
You Dont Know What Your Getting
The photos might look great, but the car is still someone’s personal vehicle. It might not be perfectly clean. It might have a weird smell, like smoke or dogs. The “check engine” light might be on. The tires might be kind of old.
A Turo host isn’t a professional fleet manager. They might not be on top of maintenance the way a company like Avis is. With a national chain, you know you’re getting a relatively new car (usually under 50,000 miles) that has been professionally cleaned and inspected. With Turo, it’s a bit of a gamble. You have to read the host’s reviews really carefully to see what other people have said.
Rules, Fees, and Mileage Limits
With a traditional rental, you usually get unlimited mileage. You can drive as much as you want.
On Turo, most cars have a mileage limit. Something like 200 miles per day. If you go over that, you get charged a fee for every extra mile, and it can add up super fast. This makes Turo not so great for a big road trip. You also have to worry about cleaning fees if you bring it back sandy, or late fees if your flight is delayed. It’s just more stuff to worry about.
So, How are the Big Guys (Hertz, Avis, Enterprise) Fighting Back?
These big national operaters aren’t stupid. They see Turo, and they know its a threat. They’re not just sitting around and letting their customers get stolen. They are changing, and their trying to copy the things that people like about Turo.
First, they’re investing a ton of money into their apps. They are trying to make the whole rental process “contactless.” Companies like National have their “Emerald Aisle” where you can just pick any car in the aisle and drive off. Hertz and Avis are rolling out features where you can choose your exact car from your phone, skip the counter, and go straight to your car. They are trying to make it as fast and easy as Turo Go.
Second, they are trying to make their fleets more interesting. Hertz made a big deal about buying a bunch of Teslas. They also have “Dream Cars” collections where you can rent Corvettes or high-end BMWs. It’s still not the same variety as Turo, but their trying to offer more than just a boring sedan.
But mostly, they are focusing on what they do best, which is what Turo is bad at.
- Reliability: Their whole marketing message is “we’ll be there for you.” You book a car, you will get a car. Period.
- Business Travelers: This is their biggest customer base. Businesses need reliability. They can’t risk their employees being stranded. They also need simple billing, one-way rentals (which Turo is bad at), and corporate accounts. Turo is just too messy and risky for most business travel.
- Customer Service: If your Hertz car breaks down at 2 AM, you call a 1-800 number and they will send a tow truck and get you a new car. If your Turo car breaks down… well, you have to call your host. What if they’re asleep? It’s just not the same level of support.
The Final Verdict: Will Turo Really Hurt Them?
Okay, so back to the big question. Is Turo hurting the national rental car companies?
Yes. Absolutely. 100 percent.
There is no question that Turo is taking a big bite out of their business, especially from the “leisure” travel market. Ten years ago, if you were flying to Denver for a ski trip, your only real option was to rent an SUV from an airport rental company. Now, you can go on Turo and find the exact 2022 Subaru Outback with a ski rack that you wanted, and have it delivered to your hotel. That is a customer that Enterprise and Avis have lost.
But is Turo going to kill them? Is Hertz going to go out of business?
Probably not. At least not anytime soon.
What’s happening is the market is splitting. It’s not one-size-fits-all anymore. People are now in different groups.
- The “Reliability First” Renter: This is the business traveler, or the family with small kids on a strict schedule. They will always choose a national chain. They are willing to pay a little more for the peace of mind that the car will be there and that they’ll have 24/7 support.
- The “Experience” Renter: This is the person who wants to drive a specific car. The car enthusiast, the person who wants a convertible for a sunny weekend, or the person who needs a big truck for a specific job. This person is going straight to Turo. The national chains have lost this customer for good.
- The “Price-Conscious” Renter: This is the biggest group. The leisure traveler, the college student, the couple on a weekend trip. They are going to check both. They’ll open the Enterprise website, and they’ll open the Turo app, and they will compare the total price. They’ll weigh the pros and cons. Is Turo $50 cheaper? Maybe it’s worth the small risk. Is it only $10 cheaper? Maybe not.
This third group is where the real battle is. Turo is forcing the big national companies to be better. They have to lower their prices. They have to improve their apps. They have to make their pickup process faster. They can’t just be lazy and rely on the fact that they’re the only option at the airport anymore.
In the end, Turo isn’t going to replace Hertz, just like Airbnb didn’t replace Marriott. But it has changed the game forever. It’s created competition, and that is almost always a good thing for us, the customers. It gives us more options. And it forces the old, giant companies to innovate and actually care about our experience. And that’s a win for everyone.