How to Build a Car Hire Marketplace Like Hiyacar?

Ownership is giving way to shared mobility, which is why the mobility landscape is undergoing a fundamental shift. Consumers now seek more flexible, affordable, and tech-driven car hire solutions, and in effect, car hire platforms like Hiyacar are leading the charge. This shift ain’t just about the convenience; it’s about creating a smarter, more sustainable transportation ecosystem.

Therefore, building a car hire marketplace now is not just about facilitating rentals but crafting an experience that balances trust, seamless transactions, and a scalable business model. But how do you create a car hire marketplace like Hiyacar that stands out? What technologies and strategies drive success in this space?

To answer all these questions, this guide breaks down the essential steps to help you build a car hire marketplace like Hiyacar, positioning your business for success in the fast-growing mobility sector.

About Hiyacar

Hiyacar is a leading UK-based peer-to-peer car hire marketplace that connects private car owners with individuals looking for affordable and convenient vehicle rentals. Founded in 2015 by Graeme Risby and Rob Larmour, Hiyacar has transformed urban mobility by offering a flexible alternative to traditional car rental services—establishing itself as a key player in the sharing economy. By leveraging technology, the platform enables seamless bookings, keyless entries, and secure transactions. Thus, making car sharing hassle-free for both owners and renters.

Success Story

Since its inception, Hiyacar has gained significant traction in the UK’s car hire market. The platform has successfully built a strong community of car owners and customers, benefiting both sides – owners can monetize their idle vehicles, while customers get access to affordable and convenient transportation. Moreover, it has expanded its services across multiple cities with a growing user base and increasing demand for flexible mobility solutions. Thus, reinforcing its position as a market leader in the UK’s car hire space. Its success can be attributed to its user-friendly interface, innovative technology, and a strong focus on security and trust.

Business Model

Hiyacar operates on a streamlined peer-to-peer (P2P) car-sharing business model that facilitates secure and efficient car rentals. The platform’s workflow is designed to ensure a seamless user experience while maintaining trust, security, and operational efficiency.

Here’s how the platform functions:

1. Car owners register themselves on the platform, create profiles, and list their cars with detailed descriptions.

2. Users browse the platform, find the car that best suits their demands, and confirm the rental terms. 

3. Customers then book the car by submitting a rental fee along with a security deposit.

4. The car owner fulfills the order as per the chosen delivery method.

5. Customers use the vehicle for the agreed duration and return it back to the designated locations.

6. Upon receiving the car, car owners inspect it for any unexpected damages and report them to the admin.

7. Admin then reimburses the car owner for the damages from the security deposit and returns the remainder to the customer.

Revenue Strategies

Hiyacar employs multiple monetization strategies to sustain and grow its business while delivering value to its customers, which are as follows:

• Commission-based Earnings: The platform charges a percentage-based commission on each successful rental transaction.

• Advertising & Promotions: Collaborating with brands, car owners, and other businesses offering promotional ad placements within the platform.

• Partnerships with Local Businesses: Collaborations with insurance providers, automotive companies, and mobility startups to enhance service offerings and revenue streams.

• Rental Add-ons: Additional revenue may come from offering optional services such as insurance, breakdown cover, chauffeur service, child seats, and more.

• Subscription Offers: Vehicle owners may be offered premium listing options or subscription-based benefits that enhance their visibility and rental opportunities.

Hiyacar’s strategic approach to monetization, thus, ensures financial sustainability while continuously improving user experience. Therefore, making it a standout competitor in the car hire market.

Opportunities to Build a Car Hire Marketplace like Hiyacar

Driven by evolving consumer preferences and technological advances, the car rental industry is witnessing exponential growth. Therefore, entrepreneurs looking to build a car hire marketplace like Hiyacar have numerous opportunities to capitalize on this growing sector, which are as follows:

1. Growing Demand for P2P Car Sharing: Consumers are increasingly shifting from traditional car ownership to shared mobility. A car hire marketplace provides cost-effective alternatives to renting vehicles, fostering a new wave of convenience-driven transport solutions.

2. Market Expansion: The car rental industry is expanding, projected to reach a market size of $278.03 billion by 2030, reflecting a CAGR of 11.2% from 2024-2030. Hence, expanding into untapped markets, including suburban and rural areas, can create new revenue streams. Additionally, targeting emerging economies where traditional rental infrastructure is underdeveloped presents a lucrative business opportunity as well.

3. Targeting Niche Markets: While broad-scale car hire models are thriving, entrepreneurs can achieve competitive differentiation by targeting niche segments as well. These could include luxury and high-end car rentals, electric vehicle (EV) sharing, and more. By addressing unique customer demand, a car hire marketplace can carve out a dedicated market segment and establish brand loyalty.

4. Sustainability & Green Mobility: With governments worldwide pushing for greener transportation alternatives, launching an eco-friendly car-sharing marketplace can align with regulatory incentives and customer preferences. Moreover, as urban populations grow and parking spaces become scarce, the demand for flexible, short-term vehicle rentals is a decent alternative to reduce traffic congestion and carbon emissions.

Key Development Approaches to Build a Car Hire Marketplace like Hiyacar

Choosing the right development approach is crucial for launching a successful car hire marketplace like Hiyacar. Entrepreneurs can either opt for custom development tailored to specific business requirements or leverage white-label software for a faster and cost-effective launch. Below is a detailed over of each:

• Custom Development: Building a car hire marketplace from scratch offers complete control and flexibility over the design, features, and user experience of your platform. Custom development allows you to build your platform from the ground up. However, this approach is often time-intensive and costly, requiring skilled development teams, ongoing maintenance, and infrastructure investments.

• Readymade Software: Opting for readymade software allows you to build your car hire marketplace more quickly and cost-effectively, that too, equipped with essential rent-centric features and functionalities. Plus, they are already tried and tested, which eliminates the risk of encountering any bugs or downtime errors. Moreover, many readymade solutions now offer scalability and customizability options—ensuring that you’re in charge of your platform.

According to the modern approach, it is recommended that you utilize a readymade software solution to build your car hire marketplace. For businesses looking for a cost-effective and scalable solution, a readymade car hire solution like YoRent can be a great choice. It offers a robust framework for car hire marketplaces, allowing entrepreneurs to launch and operate their platform efficiently while keeping costs under control. Startups looking for a rapid go-to-market strategy with limited development costs might benefit from such solutions.

Final Thoughts

Fueled by evolving consumer preferences, sustainability initiatives, and urban mobility challenges, the car hire industry is experiencing rapid growth. Thus, platforms like Hiyacar have successfully capitalized on these trends, demonstrating the immense potential of this business model. Launching a car hire marketplace requires a strategic approach for businesses and entrepreneurs looking to enter this space. This is where readymade car hire software like YoRent stands out, providing a faster, more affordable, and scalable alternative to launch and expand your business.