Global Rental Used Car Apps Market Size, Share, Statistics Analysis Report By Rental Type (Short-term Rentals, Long-term Rentals), By Vehicle Type (Economy Cars, Luxury & Premium Cars, SUVs & Electric Vehicles, Commercial Vehicles), By End-User (Individual Consumers, Businesses, Tourists & Travelers), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Global Rental Used Car Apps Market size is expected to be worth around USD 204.5 Billion By 2034, from USD 93.86 Billion in 2024, growing at a CAGR of 8.10% during the forecast period from 2025 to 2034. In 2024, North America led the global market with a 38% share and USD 35.6 billion in revenue. The U.S. market was valued at USD 33.8 billion, growing at a 6.3% CAGR due to rising demand for affordable, flexible mobility.

Rental used car applications are mobile platforms that facilitate the renting of pre-owned vehicles. These apps enable users to browse, select, and book used cars for short-term or long-term use, offering a cost-effective alternative to purchasing a vehicle. These apps use digital interfaces to offer convenient, flexible, and affordable transport options that meet changing consumer needs.

Primary growth drivers of the rental used car apps market include increasing urbanization, the rise of the sharing economy, and rapid advancements in mobile technology. Consumers are gravitating toward car rentals for cost savings, minimal maintenance responsibilities, and the flexibility to select vehicles based on specific needs. Enhanced user experiences, such as real-time availability, digital payments, and user reviews, are also driving market growth.

Investment opportunities in this sector are strong, especially in emerging markets with high smartphone usage and low car ownership. The scalability of app-based platforms and recurring revenue from subscriptions and value-added services attract investors. Strategic partnerships with automakers and financial institutions also enable innovative offerings like bundled insurance and financing, expanding revenue streams.

Emerging trends in the rental used car app industry include adding electric vehicles (EVs) to fleets to support sustainable transportation, adopting subscription-based models for flexible monthly vehicle access, and expanding peer-to-peer (P2P) car-sharing platforms that boost rental options and encourage community sharing.

Rental used car apps provide several business benefits, including lower capital expenditure by eliminating the need for a large fleet of new vehicles. The app-based model enables agile operations, rapid scalability, and quick adaptation to market demands. Additionally, data analytics from user interactions support strategic decision-making, pricing optimization, and improved customer engagement.

Technological innovations are driving rental used car apps forward. Keyless entry lets users unlock and start cars via smartphones, boosting convenience and security. Telematics and GPS offer real-time tracking for better fleet management and service. AI and machine learning enable personalized recommendations and dynamic pricing, enhancing user experience and efficiency.

Key Takeaways

• The Global Rental Used Car Apps Market size is expected to reach around USD 204.5 Billion by 2034, growing from USD 93.86 Billion in 2024 at a CAGR of 8.10% during 2025 to 2034.
• In 2024, the Short-term Rentals segment dominated, capturing more than 68% share of the global Rental Used Car Apps market.
• The Economy Cars segment held the largest share in 2024, accounting for over 41% of the Rental Used Car Apps Market.
• Individual Consumers represented the largest user segment in 2024, making up more than 57% of the total market share.
• North America led the global market in 2024, with approximately 38% market share and revenues of USD 35.6 billion.
• The U.S. Rental Used Car Apps market was valued at USD 33.8 billion in 2024 and is expected to grow at a 6.3% CAGR, driven by increasing demand for affordable, flexible mobility solutions.

Business Benefits

Rental car apps enhance the customer experience by offering an easy-to-use interface for browsing vehicles, comparing prices, and booking rentals anytime, minimizing the need for in-person visits. According to the GoodFirms report, nearly 45% of people prefer rental cars for their convenience over taxis or public transport, with 32.7% highlighting doorstep delivery as a key advantage.

Rental applications collect valuable data on customer behavior, vehicle usage, and market trends. Analyzing this data allows businesses to make informed decisions on fleet management and marketing, helping them optimize services and remain competitive.

With mobile applications, car rental businesses can reach a broader audience beyond their immediate geographic location. Customers from various regions can access services, check availability, and book rentals remotely, expanding market reach, increasing revenue opportunities, and boosting brand visibility in a competitive industry.

U.S. Market Dominance

In 2024, the U.S. Rental Used Car Apps market was valued at USD 33.8 billion, reflecting the growing consumer preference for affordable and flexible mobility solutions. This segment has emerged as a crucial component of the broader car rental and mobility ecosystem, driven by the increasing penetration of smartphones, expanding digital payment infrastructure, and rising awareness of shared economy services.

The market is projected to grow at a 6.3% CAGR, driven by technological innovations like AI-driven recommendations, dynamic pricing, and telematics. Service providers leverage data analytics to optimize fleets and personalize rentals. Additionally, partnerships between rental agencies, OEMs, and app developers enable seamless aggregation of large used car inventories, fueling market growth.

Additionally, regulatory support for digital mobility platforms, declining car ownership rates, and the increasing average lifespan of vehicles in the U.S. are strengthening the market landscape. Environmental awareness and cost concerns are also prompting consumers to rent instead of buy, especially in densely populated metro areas where parking costs and congestion charges act as deterrents to private ownership.

In 2024, North America held a dominant position in the global rental used car apps market, capturing approximately 38% of the market share with revenues reaching USD 35.6 billion. This leadership is primarily attributed to the region’s robust digital infrastructure, widespread smartphone adoption, and a mature car rental ecosystem.

The proliferation of peer-to-peer (P2P) car-sharing platforms such as Turo and Getaround has significantly contributed to market growth in North America. These platforms have disrupted traditional car rental models by enabling individual car owners to rent out their vehicles, thereby increasing the supply of rental cars and offering consumers a wider range of choices.

The integration of AI and telematics has enhanced rental platforms’ efficiency and user experience with features like dynamic pricing, real-time tracking, and personalized recommendations. Increased focus on sustainability has also boosted electric and hybrid vehicle availability in rental fleets, supporting environmental and regulatory goals.

Rental Type Analysis

In 2024, the Short-term Rentals segment held a dominant market position, capturing more than a 68% share of the global Rental Used Car Apps market. This leadership can be attributed to the rising demand for flexible, on-demand mobility solutions among urban consumers, particularly in densely populated cities where owning a personal car is less practical.

Rapid tourism growth, particularly in emerging economies, has boosted short-term rentals. Travelers increasingly use used car rental apps to avoid high new car rental costs, attracted by competitive pricing, easy app access, and diverse vehicle options. This shift has strengthened the short-term rental market.

The growth of the gig economy and freelance workforce has fueled the rise of short-term rentals. Delivery and on-demand drivers use these apps for flexible vehicle access without ownership. Features like real-time availability, GPS pickup, and fast verification make short-term rentals especially convenient.

The short-term rental model benefits providers through cost-efficiency, requiring less long-term maintenance and maximizing vehicle use with multiple daily renters. As digital platforms improve and customer experience streamlines, short-term rentals are poised to remain dominant by meeting evolving mobility needs.

Vehicle Type Analysis

In 2024, Economy Cars segment held a dominant market position, capturing more than a 41% share in the Rental Used Car Apps Market. This leadership can be attributed to the strong consumer preference for cost-effective mobility solutions, especially among urban renters, young professionals, and budget conscious users.

Economy cars offer lower rental fees, better fuel efficiency, and reduced maintenance costs, making them the most practical choice for daily commuting and short-distance travel. Their affordability, combined with rising fuel prices and inflationary pressures, continues to influence customer preference toward this segment.

The demand for economy cars has also been accelerated by the increasing penetration of digital rental platforms in Tier 1 and Tier 2 cities, where public transport may be crowded or unreliable. These apps provide real-time access to available vehicles and allow users to filter by price, fuel type, or mileage, making economy cars a natural top choice.

Rental platforms often prioritize stocking economy cars because they provide faster turnover rates, higher utilization, and lower depreciation risks. Compared to luxury or commercial vehicles, economy cars face less idle time, thus improving revenue per vehicle for rental platforms. Furthermore, these cars are easier to insure, maintain, and relocate between cities or rental zones, supporting operational efficiency for rental app companies.

End-User Analysis

In 2024, the Individual Consumers segment held a dominant position in the Rental Used Car Apps Market, accounting for over 57% of the total market share. This substantial lead is primarily driven by the increasing demand for personal mobility without the long-term commitment of ownership.

Smartphones and on-demand vehicle access have transformed consumer expectations, allowing users to easily compare models, check real-time availability, and complete rentals without visiting physical locations. The variety of vehicles and flexible rental durations from hourly to monthly make these platforms popular across urban and suburban areas.

Additionally, individual consumers benefit from technological advancements such as AI-powered personalization, real-time navigation integration, and contactless pick-up and drop-off, which improve user experience and satisfaction. Many platforms also offer loyalty rewards, referral bonuses, and subscription models, which add value for frequent renters and increase customer retention.

Unlike business or tourist renters who use vehicles for specific trips, individual consumers form a steady, recurring user base. Their regular usage, especially in congested cities with limited parking, makes them the core of the rental used car app ecosystem. As mobility-as-a-service gains popularity over traditional ownership, this segment is likely to remain dominant in the years ahead.

Key Market Segments

By Rental Type

• Short-term Rentals
• Long-term Rentals

By Vehicle Type

• Economy Cars
• Luxury & Premium Cars
• SUVs & Electric Vehicles
• Commercial Vehicles

By End-User

• Individual Consumers
• Businesses
• Tourists & Travelers

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Driver

Rise of the Sharing Economy

The emergence of the sharing economy has significantly influenced the adoption of rental used car applications. Consumers are increasingly valuing access over ownership, leading to a shift in transportation preferences.

This trend is particularly evident in urban areas, where individuals seek flexible and cost-effective mobility solutions without the long-term commitments associated with car ownership. Rental used car apps cater to this demand by offering a platform where users can rent vehicles as needed, aligning with the modern emphasis on convenience and sustainability.

The integration of technology in these platforms enhances user experience, providing real-time availability, easy booking processes, and transparent pricing. As urbanization continues and environmental concerns grow, the sharing economy’s influence on transportation choices is expected to strengthen, further driving the popularity of rental used car applications.

Restraint

Regulatory and Legal Challenges

Despite the growth of rental used car applications, regulatory and legal challenges pose significant restraints. The classification of these platforms often falls into gray areas, leading to uncertainties in taxation, insurance, and compliance with local transportation laws.

Peer-to-peer car-sharing services often face fewer regulations than traditional rental companies, leading to disparities and potential legal conflicts. Additionally, varying regulations across different jurisdictions complicate the expansion and standardization of services.

These legal ambiguities can deter potential users and investors, hindering the scalability and trustworthiness of rental used car apps. Addressing these regulatory challenges requires collaboration between policymakers and industry stakeholders to establish clear guidelines that ensure safety, fairness, and competitiveness in the market.

Opportunity

Integration of Electric Vehicles (EVs)

The integration of electric vehicles into rental used car applications presents a significant opportunity for market expansion and environmental impact. As consumers become more environmentally conscious, the demand for sustainable transportation options increases.

Rental platforms that offer EVs cater to this demand, providing users with access to eco-friendly vehicles without the high upfront costs of ownership. This not only broadens the customer base but also aligns with global efforts to reduce carbon emissions.

Furthermore, partnerships with EV manufacturers and charging infrastructure providers can enhance the value proposition of rental apps, offering users comprehensive solutions for their mobility needs. The adoption of EVs within rental platforms also positions these services as forward-thinking and socially responsible, appealing to a demographic that prioritizes sustainability.

Challenge

Ensuring Vehicle Safety and Maintenance

Ensuring the safety and maintenance of vehicles within rental used car applications is a critical challenge. Unlike traditional rental companies that maintain centralized fleets, peer-to-peer platforms rely on individual car owners to provide vehicles, leading to variability in maintenance standards.

Implementing rigorous inspection protocols and providing maintenance support to vehicle owners are essential steps in addressing this issue. Additionally, educating car owners about the importance of regular servicing and establishing clear guidelines for vehicle condition can help maintain quality standards.

Emerging Trends

The landscape of rental used car applications is undergoing significant transformation, driven by technological advancements and evolving consumer preferences. One notable trend is the emphasis on contactless experiences. Users can now complete the entire rental process from selecting a vehicle to unlocking it through their smartphones, minimizing the need for physical interactions and paperwork.

Another emerging trend is the integration of artificial intelligence (AI) and machine learning (ML) to enhance user experience. These technologies enable apps to provide personalized vehicle recommendations based on user behavior and preferences, streamlining the decision-making process .

Sustainability is also becoming a focal point. Rental platforms are increasingly offering eco-friendly vehicle options, such as electric or hybrid cars, catering to environmentally conscious consumers. This shift not only meets customer demand but also aligns with global efforts to reduce carbon emissions .

Key Player Analysis

The market is competitive, with key players striving to offer unique features like easy booking, flexible rental periods, and a wide variety of vehicle choices.

Turo is one of the top leaders in the rental used car app market. Turo is like the “Airbnb for cars”, letting owners rent their vehicles to others. Its community focus and insurance options build trust, making it unique in the sharing economy.

Getaround is another major player known for its instant car rentals and smart technology integration.This technology streamlines the rental process, making it faster and more convenient, especially for short-term rentals. Getaround targets urban users who need cars for a few hours or days, emphasizing ease of use and accessibility in crowded city environments.

Zipcar differs from Turo and Getaround by focusing mainly on car sharing with a fleet of vehicles owned and maintained by the company itself. Zipcar provides hourly or daily rentals, ideal for city residents needing occasional cars. Users prefer its reliability and ease of renting from a professional service over individual owners.

Top Key Players in the Market

• Turo
• Getaround
• Zipcar
• Hertz
• Enterprise Rent-A-Car
• Avis Car Rental LLC
• Uber Rent
• Lyft Rentals
• Zoomcar
• Revv Cars
• Drivezy
• MylesCars
• Others

Top Opportunities for Players

The rental used car app industry is undergoing significant transformation, presenting several opportunities for growth and innovation.

• Rising Demand for Affordable Mobility: Rising new car prices and ownership costs are pushing many consumers, especially in cities, to choose used car rentals as an affordable, flexible alternative to long-term ownership. Rental apps that offer competitive pricing and convenient access to vehicles are well-positioned to meet this growing demand.
• Expansion of Peer-to-Peer (P2P) Rental Models: The P2P car rental market is growing rapidly, fueled by smartphone use and online convenience. It lets individuals rent out their cars, offering more choices for renters and extra income for owners. Platforms facilitating these transactions are tapping into a market that values flexibility and community-based solutions.
• Integration of Electric Vehicles (EVs) into Rental Fleets: Environmental concerns and government support are speeding up EV adoption. Rental companies with EV fleets appeal to eco-conscious consumers and support sustainability goals. This move not only meets regulatory requirements but also positions companies as forward-thinking and responsible.
• Technological Advancements Enhancing User Experience: The integration of technologies such as artificial intelligence (AI), machine learning (ML), and real-time data analytics is revolutionizing the rental experience. Features like dynamic pricing, predictive maintenance, and personalized recommendations are improving operational efficiency and customer satisfaction.
• Strategic Partnerships and Ecosystem Development: Collaborations between rental platforms and services like ride-sharing, insurance, and maintenance are building mobility ecosystems that boost value, grow customer bases, and streamline operations. By building integrated networks, companies can offer seamless and diversified services to users.

Recent Developments

• In October 2024, Enterprise Mobility, the private owner of the Enterprise, National, and Alamo car rental brands, reported a record annual revenue exceeding $38 billion for its 2024 fiscal year.
• In May 2025, Uber introduced “Route Share,” a ride-hailing option offering up to 50% fare reductions for riders willing to share rides with others.
• In April 2024, Zipcar launched “Zipcar for Uber,” offering flexible rental options for rideshare and delivery drivers, including a growing fleet of EVs with free charging.

Report Scope