Car-sharing services battle for Aussies

Car-sharing services are battling for attention in Australia, with the world's leading platform launching in the country at the same time as its main rival hoisted a mirror-covered VW Beetle over the Sydney Opera House.

The fierce competition kicked off after Turo opened its platform in Australia on Wednesday morning, allowing users to rent nearby cars from local "hosts".

The company is aiming to shake up car rentals during the summer holidays, with its managing director calling the Australian market "ripe for disruption".

But Turo's own launch was disrupted by rival Uber, who suspended a car dressed as a disco ball over Sydney Harbour on Wednesday to promote its competing service.

Uber Carshare, which rebranded from Car Next Door on November 8, also announced it would give away $200 credits to new users who booked rides before December 4.

The competition for customers came as Australians prepared for summer holidays, which Turo chief executive Andrew Haddad said would be a crucial time to encourage car-sharing.

"As Australians battle with inflated rental car prices and limited fleet availability, we're excited to provide travellers with a unique selection of cars," Mr Haddad said.

Turo's car-sharing platform, which also operates in the US, UK, Canada and France, lets users find and rent cars other users list on its app and website.

Turo Australia managing director Tim Rossanis said "hosts" set the price to rent their vehicles but they would cost, on average, $80 a day for a Hyundai ix35 or $150 a day for an Audi Q3.

"One of our major propositions in Australia is value," he said.

"Especially where – let's be honest – we're seeing pretty crazy prices leading into summer with car rental shortages. As prices go up pretty meaningfully, we are trying to educate our host community that it's an opportunity to be smart about how they price their vehicles."

Unlike other car-sharing companies, Mr Rossanis said Turo rented vehicles by the day rather than the hour, and it was often used for trips with longer durations.

"Our focus is on holiday-makers or weekend warriors – people who want a car to enhance their holiday or travel experience," he said.

"We feel privileged to be part of the mobility story here in Australia because it's definitely ripe for disruption. There's lots more that can be done."

The Turo platform will also feature more electric vehicles than many of its rivals, Mr Rossanis said, with 18 per cent of cars listed on the platform powered by batteries, including models from Tesla and Polestar.

By comparison, electric vehicles made up 13 per cent of vehicles on Turo in other markets.

"It's great to see Australia ahead of the pack but let's see if we can double it," he said.

Turo launched in Australia just weeks after Uber Carshare rebranded in preparation for its US launch in 2023.

Both will also compete with GoGet and Flexicar, which offer fleets that can be rented by the hour.

Despite the growing number of car-sharing services, a survey of 1000 Australians by Uber found 48 per cent of consumers were not aware of them or had not tried one, even though 41 per cent of respondents said they were using their cars for less than four hours each week.