The founder of easyJet Sir Stelios Haji-Ioannou has recently teamed up with the founder of lastminute.com to launch a short-term car rental company similar to the offering by Zipcar. The name of the venture is called The Car Club and will be based in the UK. It is going to be run alongside the current car hire operation run by Stelios, EasyCar.
The hire company is going to be starting a test launch early next year and the business model is going to differ from that by the current companies in the market. Zipcar owns its fleet of cars but this new venture is going to allow members of The Car Club to share their vehicles and rent them out for an hourly fee. Insurance will be included with the rental price and owners will be able to set the price of renting their car and its availability.
A booking system will be set up online and there will be a tracker system and automated entry device installed in all vehicles. This will allow car owners to rent out their vehicles even when they are not around. Sir Stelios recently commented about the venture, “This could very well be the future of the car rental market. Instead of people owning cars they will just be able to use those cars on the street that are being underused. The owners of cars have wasted capital when not being used and something that can easily be put to work.”
The new venture will be run on the same website as that of EasyCar which will continue to offer traditional vehicle rental. Currently, Zipcar charges nearly £50 a day to rent a car or if you want to rent per hour it costs five pounds. This includes insurance and fuel for a limited mileage amount.