The sharing economic system continues to bear fruit. CarHopper, a platform for luxurious automobile rental, has raised a $1.5 million seed spherical to broaden to new markets.
CarHopper began out as a peer-to-peer platform for luxurious automobile homeowners — suppose Lexus, Mercedes and BMW all the way in which as much as Ferrari and Rolls Royce — to lease out their rides to others. However in its infancy, the corporate realized that there was a a lot larger alternative with small, native rental companies who don’t have a robust on-line presence.
These native companies have hassle competing with nationwide rental companies like Avis and Hertz, in response to founder and CEO Bora Hamamcioglu, who says that a lot of them have archaic stock techniques and poor on-line reserving techniques, if any in any respect.
CarHopper facilitates the transactions for renters and the companies on their luxurious and extremely high-end stock, whereas the company nonetheless takes care of issues like insurance coverage, customer support and upkeep.
On the low-end, CarHopper vehicles can go for $600/day, and vary all the way in which as much as $1,500/day for the priciest fashions.
The corporate at present operates in Los Angeles, San Francisco, Miami, and Las Vegas, with plans to launch in New York, Hamptons and Orlando.
Clearly, CarHopper isn’t alone available in the market. Turo has been round for the previous few years and picked up greater than $172 million in funding, providing each peer-to-peer sharing in addition to the front-end for rental companies.
Hamamcioglu says that the massive alternative for CarHopper, competitively, is to remain targeted on the posh and high-end market and construct model loyalty with these particular shoppers.