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

    Turkey, West in Standoff Over Syrian Refugees

    Turkish government refuses to admit refugees, the first in a wave of civilians fleeing offensive by Assad regime in northern Aleppo countryside

    Jailed American Testifies About Islamist Involvement in Mumbai Attacks

    David Headley testifies via video link that Pakistan-based Islamic terror group made two failed attempts to mount strikes in Mumbai in months prior to coordinated assault

    These Are the 10 Smartest US States

    A new report breaks down the nation's best and brightest

    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.
    German Artists to Memorialize Refugees With Life Jacket Exhibiti
    X
    Hamada Elsaram
    February 05, 2016 4:30 PM
    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video Former Drug CEO Martin Shkreli Angers US Lawmakers

    A former U.S. pharmaceutical business executive has angered lawmakers by refusing to explain why he raised the price of a life-saving pill by 5,000 percent. Martin Shkreli was removed from a congressional hearing on Thursday after citing his Fifth Amendment right to stay silent. Zlatica Hoke has more.
    Video

    Video Super Bowl TV Commercials are Super Business for Advertisers

    The Super Bowl, the championship clash between the two top teams in American Football, is the most-watched sporting event of the year, and advertisers are lining up and paying big bucks to get their commercials on the air. In fact, the TV commercials during the Super Bowl have become one of the most anticipated and popular features of the event. VOA's Brian Allen has a sneak peek of what you can expect to see when the big game goes to commercial break, and the real entertainment begins.
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Solar Innovation Provides Cheap, Clean Energy to Kenya Residents

    In Kenya, a company called M-Kopa Solar is providing clean energy to more than 300,000 homes across East Africa by allowing customers to "pay-as-you-go" via their cell phones. As Lenny Ruvaga reports from Kangemi, customers pay a small deposit for a solar unit and then pay less than a dollar a day to get clean energy to light up their homes or businesses.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.
    Video

    Video Apprenticeships Put Americans on Path Back to Work

    Trying to get more people into the U.S. workforce, the Obama administration last year announced $175 million in grants towards apprenticeship programs. VOA White House correspondent Aru Pande went inside one training center outside of Washington that has gained national recognition for helping put people on the path to employment.
    Video

    Video New Material May Reduce Concussion Effects

    As the 2016 National Football League season reaches its summit at the Super Bowl this coming Sunday (2/7), scientists are trying to learn how to more effectively protect football players from dangerous and damaging concussions. Researchers at Cardiff and Cambridge Universities say their origami-based material may solve the problem. VOA’s George Putic reports.
    Video

    Video Saudi Arabian Women's Sports Chip Away at Stereotypes

    Saudi Arabian female athletes say that sports are on the front line of busting traditions that quash women’s voices, both locally and internationally. In their hometown of Jeddah, a group of basketball players say that by connecting sports to health issues, they are encouraging women and girls to get out of their homes and participate in public life. VOA’s Heather Murdock reports.
    Video

    Video A Year Later, Fortunes Mixed for Syrians Forging New Lives in Berlin

    In April of last year, VOA followed the progress of six young Syrian refugees -- four brothers and their two friends -- as they made their way from Libya to Italy by boat, and eventually to Germany. Reporter Henry Ridgwell caught up with the refugees again in Berlin, as they struggle to forge new lives amid the turmoil of Europe's refugee crisis.
    Video

    Video Zika Virus May be Hard to Stop

    With the Zika virus spreading rapidly, the World Health Organization Monday declared Zika a global health emergency. As Alberto Pimienta reports, for many governments and experts, the worst is yet to come.