Brilliant New Rental Car Business ModelSubmitted by Jao171 on Wed, 06/19/2013 - 16:42
Next time you fly, instead of parking in an airport lot and paying at least $10/day, would you like the option of free parking, a free car wash, and the possibility of getting paid $10/day? Well, if you live in the San Francisco or Boston area, now you have that opportunity.
Three teenagers decided to put their college educations on hold in favor of starting a business that could revolutionize the Rental Car business. Rajul Zaparde, Shri Graneshram, and Kevin Petrovic had either gained or been offered admission at Harvard, Princeton and MIT. Instead of heading to college, the three young entrepreneurs saw an opportunity in the market that was not being exploited, Yahoo News reports.
The idea was this: At every major airport, acres of cars sit idle, left parked by owners who have jetted off. Why couldn’t these same cars be rented to arriving travelers? Rates could be dramatically cheaper than those charged by traditional car rental companies, since, under this model, the rental company wouldn’t have to pay for or maintain the fleet.
Sounds like a brilliant idea. Why the heck didn’t I think of this?
The business they founded is called Flightcar, and they began renting cars in San Francisco in February 2013. They have expanded to provide service to Boston Logan and hope to open in a third city before the end of the year.
They could be paying hundreds of thousands of dollars for the opportunity to attend prestigious universities, but instead have chosen to keep their money and build a business, thus gaining experience that’s not available in the classroom.
Unfortunately, it is not all roses for the entrepreneurial trio.