News / USA

    Americans Try Renting Their Car to Strangers

    Free market solution is designed to help neighborhoods make do with fewer cars

    Eric Loebel, of Portland, Oregon, plans to rent his Volvo S80 out to strangers with the help of a car sharing service.
    Eric Loebel, of Portland, Oregon, plans to rent his Volvo S80 out to strangers with the help of a car sharing service.

    Multimedia

    Audio
    Tom Banse

    Americans love their cars. There are more cars, per capita, in the United States than in any other country - more than eight cars for every 10 Americans, according to recent government figures.

    But most of the time, those vehicles sit idle, parked in a driveway or on the street. Now, several startup companies on the U.S. West Coast are helping people rent their personal car to someone else when they don’t need it.

    Peer-to-Peer Car Sharing

    Eric Loebel is one of those people. For a small price, he wants to let his Oregon neighbors “borrow” his car. It’s a dark blue, model year 2000 Volvo sedan.

    The sales and marketing consultant says he doesn’t use it much.

    “My wife and I are huge bike commuters and almost don’t need a car, but haven’t quite been able to eliminate that element," he says. "So we have a car that basically sits in front of the house maybe 85 to 90 percent of the time.”

    Loebel is one of the first car owners in Portland to list his wheels for rent through a so-called “peer-to-peer car sharing” service called Getaround.com.

    The website for car sharing service, Getaround.com, lists the personal vehicles available for hourly rental.
    The website for car sharing service, Getaround.com, lists the personal vehicles available for hourly rental.

    “Cars are so expensive to own," he says. "This can definitely offset some of the cost.”

    The website lets car owners decide for themselves how much to charge borrowers to rent by the hour, day or week.

    Collision protection

    Loebel is charging $9 per hour or $199 per week. So is he worried someone will wreck his car?

    “Ummm... no. My relationship to my car is one of non-attachment.”

    And besides, he says the car sharing marketplace automatically includes liability and collision insurance that is separate from his own. That’s an important feature. Most U.S. insurance companies hold the owner of a vehicle responsible for accidents, no matter who is driving, and can raise the insurance premium.

    So the Oregon Legislature is considering new regulations to smooth the road for person-to-person car rentals, following an example set by the California legislature last year.  

    “Commercial uses of vehicles are prohibited under typical insurance policies," says State Rep. Ben Cannon, a Democrat from Portland. "So we needed to create new law to provide for the possibility that someone could put their car into a car sharing program without violating their motor vehicle insurance policy.”

    Cannon’s legislative fix encountered no organized opposition on its way to passage. He enthusiastically endorses personal car sharing as a free market solution to help neighborhoods make do with fewer cars.

    Something for everyone

    Person-to-person rentals began in Germany a decade ago, and there are a handful of similar companies in Europe and Australia.

    The concept caught on quickly in California over the past year, according to John Atcheson, vice president of Getaround, one of four car-sharing startups in the San Francisco area.  

    “We have had an amazing array of cars leaping into our system," Atcheson says. "Not just 1995 pickup trucks, but we have had late model Mercedes, Audis, any type of car you can imagine.  We actually have a Tesla Roadster - a $150,000 sports car - that people have put into this pool.”

    Atcheson’s company and its competitors screen the driving records of prospective borrowers. Private car owners post when their vehicles are available in a members-only internet marketplace.

    The car sharing companies take a commission of 35- to 40 percent of the rental price to cover administration and insurance. Owners and borrowers can police the marketplace by giving each other online ratings.

    “So far, we have had surprisingly few issues come up," Atcheson says. "In fact, the only issue I can think of right now that has happened is that someone had a BMW sports car in the system. It was a stick shift. Someone who didn’t know how to drive a stick shift very well took it and burned the clutch down.”

    Getaround helped to pay for a new clutch.  

    Another service called JustShareIt plans to stand out by going beyond cars. Its founder says the company will offer person-to-person rentals of power boats, dune buggies, jet skis and snowmobiles too.

    You May Like

    Mother of IS Supporter: Son Was Peaceful, 'Role Model'

    Somali-American Abdirizak Mohamed Warsame pleaded guilty Thursday to charges of conspiring to provide material support to Islamic State militants

    Factions Shift as Civilians Die in Syrian War

    Scenario likely only to further confuse military situation on ground and potentially worsen humanitarian crisis that already has grown to epic proportions

    Presidential Hopefuls Woo Minorities, Evangelicals

    Four GOP candidates to speak at forum at Bob Jones University in Greenville, South Carolina

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Two-thirds of World Faces Water Shortagei
    X
    February 12, 2016 7:31 PM
    Four billion people — or two out of every three on the planet — do not have enough water to meet their basic needs. That is far greater than previously thought, according to a new study that presents a more accurate picture of the problem. As VOA's Rosanne Skirble reports, the findings will help policymakers and the public craft solutions to address the threat.
    Video

    Video Two-thirds of World Faces Water Shortage

    Four billion people — or two out of every three on the planet — do not have enough water to meet their basic needs. That is far greater than previously thought, according to a new study that presents a more accurate picture of the problem. As VOA's Rosanne Skirble reports, the findings will help policymakers and the public craft solutions to address the threat.
    Video

    Video Gateway to Mecca: Historical Old Jeddah

    Local leader Sami Nawar's family has been in the Old City of Jeddah for hundreds of years and takes us on a tour of this ancient route to Mecca, also believed to be the final resting place of Adam's wife, Eve.
    Video

    Video New Technology Aims to Bring Election Transparency to Uganda

    A team of recent graduates from Uganda’s Makerere University has created a mobile application designed to help monitor elections and expose possible rigging. The developers say the app, called E-Poll, will make Uganda's democratic process fairer. From Kampala, VOA's Serginho Roosblad reports.
    Video

    Video As Refugees Perish, Greek Graveyards Fill

    Aid workers on the Greek island of Lesbos say they are struggling to bury the increasing number of bodies of refugees that have been recovered or washed up ashore in recent months.  The graveyards are all full, they say, yet as tens of thousands of people clamor to get out of Syria, it is clear refugees will still be coming in record numbers. For VOA, Hamada Elrasam reports from Lesbos, Greece.
    Video

    Video Russia Bristles at NATO Expansion in E. Europe

    Russian Foreign Minister Sergei Lavrov is meeting Friday with the head of NATO after the Western military alliance and the United States announced plans for the biggest military build-up in Europe since the Cold War. Russia has called NATO's moves a threat to stability in Europe. But NATO says the troop rotations and equipment are aimed at reassuring allies concerned about Russia as VOA's Daniel Schearf reports from Moscow.
    Video

    Video To Fight Zika, Scientists Target Mosquitoes

    Mosquitoes strike again. The Zika virus outbreak is just the latest headline-grabbing epidemic carried by these biting pests, but researchers are fighting back with new ways to control them. VOA's Steve Baragona takes a look.
    Video

    Video Mosul Refugees Talk About Life Under IS

    A top U.S. intelligence official told Congress this week that a planned Iraqi-led operation to re-take the city of Mosul from Islamic State militants is unlikely to take place this year. IS took over the city in June 2014, and for the past year and a half, Mosul residents have been held captive under its rule. VOA's Zana Omar talked to some families who managed to escape. Bronwyn Benito narrates his report.
    Video

    Video Scientists Make Progress Toward Better Diabetes Treatment, Cure

    Scientists at two of the top U.S. universities say they have made significant advances in their quest to find a more efficient treatment for diabetes and eventually a cure. According to the International Diabetes Federation, the disease affects more than 370 million people worldwide. VOA’s George Putic reports.
    Video

    Video NATO to Target Migrant Smugglers

    NATO has announced plans to send warships to the Aegean Sea to target migrant smugglers in the alliance's most direct intervention so far since a wave of people began trying to reach European shores.
    Video

    Video Russia's Catholics, Orthodox Hopeful on Historic Pope-Patriarch Meeting

    Russia's Catholic minority has welcomed an historic first meeting Friday in Cuba between the Pope and the Patriarch of Russia's dominant Orthodox Church. The Orthodox Church split with Rome in 1054 and analysts say politics, both church and state, have been driving the relationship in the centuries since. VOA's Daniel Schearf reports from Moscow.
    Video

    Video Used Books Get a New Life on the Streets of Lagos

    Used booksellers are importing books from abroad and selling them on the streets of Africa's largest city. What‘s popular with readers may surprise you. Chris Stein reports from Lagos.
    Video

    Video After NH Primaries All Eyes on South Carolina

    After Tuesday's primary in New Hampshire, US presidential candidates swiftly turned to the next election coming up in South Carolina. The so-called “first-in-the-South” poll may help further narrow down the field of candidates. Zlatica Hoke reports.
    Video

    Video Smartphone Helps Grow Vegetables

    One day, you may be using your smartphone to grow your vegetables. A Taipei-based company has developed a farm cube — a small, enclosed ecosystem designed to grow plants indoors. The environment inside is automatically adjusted by the cube, but it can also be controlled through an app. VOA's Deborah Block has more on the gardening system.
    Video

    Video Exhibit Turns da Vinci’s Drawings Into Real Objects

    In addition to being a successful artist, Renaissance genius Leonardo da Vinci designed many practical machines, some of which are still in use today, although in different forms. But a number of his projects were never realized — until today. VOA’s George Putic reports.