Cost And Features To Develop A Car Rental Mobile App

Cost And Features To Develop A Car Rental Mobile App

Car rentals have grown increasingly popular and convenient over the last several years as more people rely on car sharing for transportation needs. Develop a car rental mobile app could be an extremely profitable business venture that taps into this lucrative market; however, proper planning and execution are required for successful app creation if it is to meet customers' and service providers' needs. Do you want to develop a Car Rental App for Business? But first, you must understand its Development Cost.

iOS app development landscape is packed with top-of-the-line applications tailored for diverse purposes. Your iPhone can help you to manage tasks such as making to-do lists, purchasing items online and organizing vacations - not forgetting creating to-do lists! While some applications enjoy wide popularity and profitability compared to others - car rental iOS app development stands out among them as one notable trend within industry. Car rental mobile app development has seen exponential growth recently. But develop a car rental mobile app from scratch is a challenging task; simply cobbling together concepts and features doesn't cut it!  In order to create an effective rental business strategy, you will require guidance from a technical expert with extensive expertise to guide the way forward with development strategies that ensure lasting success - but don't worry...we have yet to leave the best thing until last!

Market Size of Car Rental Industry

Car rental industries are an ever-expanding market that continues to meet user needs, particularly commuters' commuting habits. Car rentals have proven invaluable as part of today's modern society; on-demand car rental stands as an increasingly vital industry, and car rentals play a pivotal role in that process. Small and mid-sized companies are also creating car rental apps to meet rising customer demand for them. Service providers are responding by offering multiple services via their apps to meet this growing need.

Let's Take a Quick Peek into the Global Car Rental Market

  • Car Rental revenues are projected to reach US$53,333m by 2020 and show an expected compound annual growth rate (CAGR 2024-2028) of 18.5%, leading to an anticipated market volume of US$105,285m in 2024.
  • User penetration levels currently stand at 3.6% but could grow as high as 7.1% by 2024.
  • Average Revenue per User (ARPU) is predicted to reach US$200.37 by 2020.
  • Car rental revenue is expected to surpass $999.54 billion by 2023.
  • This market's annual compound annual growth rate will reach 4.65%, reaching $119.40 billion by 2027.
  • In 2021, the Global Car Rental Software Market totaled US$ 101,729.76 Million; by 2027, this is projected to have increased to US$ 188,933.23 Million with a compound annual compound growth rate of 9.25% between 2021-2027.

What Are Car Rental Mobile Apps?

Luxurious living has become the new trend, and people from all walks of life love to experience its pleasures at reasonable prices. Car rentals have become easier to access through car rental apps that sell their services, and people have plenty of cars from which they can select and drive themselves. By comparing prices and availability between various apps, they can avail of lucrative offers at great discounts by doing their price comparison. It also makes life simpler as users no longer need to search web browsers and make unnecessary phone calls in search of services they require. Car rental apps have seen great popularity due to the surge in their usage, with users placing booking orders through these mobile applications and receiving notifications with details on car availability and timings.

Types of Car Rental Mobile App

There are various car rental apps designed to meet user needs. Here is a look at what types of mobile apps are currently available for car rentals:

  1. Self-Drive Car Rentals

Under this category, users book and drive their car rental. Charges depend on both the type of car selected as well as how long it was hired for.

  1. Corporate Car Rentals

This service provides convenience for business clients by providing them with their vehicles for office purposes.

  1. Outstation Car Services

Travel booking services like these allow travelers who travel across multiple cities or states to book cars for extended stays.

  1. Local Car Rentals

This option offers users cars for hourly, half-day, or full-day rentals, as well as airport pick-up/drop-off.

  1. Car Rental Apps that Use Traditional Apps

With this type of car rental service, a user can rent for a specified duration (hours or days). Utilizing an app, they can search and reserve their desired car(s) and then pay their rentals through online payment options.

  1. Car-Sharing App

This type of app enables users to rent cars for short or extended periods, making them popular in urban environments where car ownership is less prevalent. Users can book, ride, park, and lock when necessary before returning it at their convenience.

  1. Ride-Hailing App

These apps allow the user to hire drivers through ride-hailing services. Once booked, their driver will come and pick them up at their desired destination and drop them back off again. Furthermore, these ride-hailing apps also enable them to book rental cars directly through them.

  1. Peer-to-Peer Car Rental App

This app enables car owners to rent their vehicles directly to users. Users can search for available cars, rent them out, and pay through the apps - similar to car-sharing apps, only here individuals own their vehicles instead of companies!

  1. Luxury Car Rental App

A luxury car rental app designed specifically to cater to high-end vehicles. Users can search and reserve vehicles as well as hire drivers or request special amenities such as champagne or flowers.

  1. All-In-One Super App 

An all-in-one super app is an application that unifies a number of services and features into one unified platform, often comprising many of those listed above as well as extra ones to make work simpler and streamlined.

How Can You Develop a Car Rental Mobile App?

Develop a car rental mobile app involves several steps. The challenge lies in making sure the app is user-friendly while meeting all industry standards. Here is an outline of how to develop one.

Define Your Requirements

Before embarking on app development, you must identify your requirements. Establish what features your app should or shouldn't contain and ask yourself the pertinent questions so as to meet both customer and business requirements. This ensures you create an app that fulfills both sets of expectations simultaneously. Perform an in-depth competitor analysis in order to gain a thorough understanding of what features and functions your competitors offer, which will enable you to identify your app's unique selling point and differentiate itself from others in its field. Your app must provide something no other app does - an edge over others!

Select an Appropriate Development Technology

The next step in developing your app should be selecting an ideal development technology or framework. Your options for app creation may include native apps, hybrid apps, and cross-platform apps; choose one that best meets both your requirements and budget. If you need an app developed quickly, cross-platform technology can be beneficial as it allows for the creation of apps that run across various platforms. Native apps provide optimal user experiences as they're tailored specifically for one platform.

Wireframing: An Overview and Features Descriptions

Request those mobile app developers draw wireframes of all of the screens and features of the app in order to help visualize how it will look and function, which allows you to get feedback from users during the development, which allows for modifications if necessary. This step is crucial as it gives developers time to respond to user comments while making necessary alterations based on user needs. Wireframing is a vital step in developing any app, from its initial entry point through all features and functionalities. Wireframing helps developers understand how everything should fit together while giving them an outline for creating the application itself. Tools will enable you to easily produce high-quality wireframes quickly.


Building an MVP (Minimum Viable Product) can be an excellent way to test your app before going live. Creating just the essential features allows for user feedback and quick changes as necessary, saving both time and money when pushing to make sure all features work as intended without needing to develop the entire app. Establishing an MVP can save companies significant costs by taking less development time than creating an entire app and by being open to collecting feedback from users and making improvements accordingly.

User Interface/User Experience of Car Rental Mobile Apps

A car rental mobile app's user interface (UI) and user experience (UX) are essential to its success. Ideally, the UI should be visually attractive, intuitive, and responsive. At the same time, its UX should ensure booking a car is effortless and enjoyable for users. Designers must pay careful consideration when creating apps of this nature - including colors, fonts, navigation features, etc. App users should receive all of the information they require at a glance, making navigation simple and user-friendly. Booking should also be straightforward; users should be able to arrange their car rental in just a few steps.

Development and Testing

Once the design has been approved, developers can start creating the app. Developers need to ensure it functions across all platforms properly before testing is carried out prior to its release on live servers.

Advanced Car Rental Mobile App Features to Keep in Mind When Building

Below are a few advanced car rental app features to consider during development:

  1. Assign Drivers

This feature allows users to book drivers along with cars directly through the app, selecting someone after perusing reviews and ratings on it. This service is commonly utilized when booking long rides. It can provide access to information like gender, age rating, and experience of each driver assigned to their ride.

  1. Interactive Statistics

Car rental apps give access to real-time base fare information as well as fixed packages, time rates, surge pricing, and distance details that provide an understanding of an organization's business processes.

  1. Payment Gateway

Payments can often be a source of anxiety when they differ significantly from what was displayed online during booking. Now, multiple options for payments such as online banking, debit/credit card payments, e-wallets, and UPI exist to facilitate booking without hassle for users.

  1. Zone Setup Is Fully Functional

Car rental organizations that know their area well are adept at setting up promotional services in order to entice users and make them take full advantage of what car rental service providers have to offer.

  1. GPS Tracking for Pick-Ups and Security

GPS tracking has proven itself as one of the main features to ensure both safety and customer service success. Users can access their driver's location easily to help them locate their customer quickly while sharing live tracking updates of their car with their friends, family, or admin for security purposes.

  1. Track the Behavior of Users

This app records user bookings made and canceled; rental service providers gain access to these bookings so they can allocate cars and drivers according to user preference and behavior.

  1. Offers 

In order to attract customers into booking from your app, car rental mobile app development services need to offer tempting offers they cannot resist—frequent users like being eligible for special discounts when they book services through your app.

  1. Cost Calculator

Users looking to rent and drive themselves to an outstation or need it for a limited period will find that using a cost calculator provides them with an approximate idea of the costs involved for their chosen period. This enables them to compare service offerings from various apps and book the one most economical for themselves.

  1. Communication and Notification

Apps provide transparency by sending timely notifications of every detail to their users. Booking information will be communicated in a notification format; car and price details will also be shared prior to delivery of their vehicle.

  1. Push Notification (PN)

Push notifications enable app developers to inform users about their booking and car service details as well as the final pricing of services rendered, any offers or promotions running by the app, etc., by sending push notifications directly.

  1. Email and Message

In addition to sending service details via push notifications, they should also be communicated to users either by email or SMS text message - so they may save this information for future reference if needed.

  1. Allow In-App Calls 

Users should have the ability to make free in-app calls directly through the app to drivers and service providers without incurring charges, enabling them to stay focused on using it without switching out for contacts or phone numbers.

  1. In-App Videos 

This feature enables users to make video calls directly through the app itself.

  1. Multiple Bookings

With this feature, users are granted the ability to make as many bookings as desired at once and across various locations. The apps also permit booking for more than one location at the same time.

  1. Custom Packages

This feature is tailored specifically towards returning and loyal customers of car rental services, providing them with options of custom packages available through the app.

  1. Floating Window

This application helps users make quick car bookings. By saving their location, they can make reservations between two places they travel between regularly.

  1. Real-Time Analytics & Statistics

This information allows the administrator to track how many cars have been rented at any given moment and their details, along with location updates for each one.

  1. Reliable Fleet Tracking

An electronic tracking device can be installed into each car that tracks its movements and provides location data to app developers of car rental app Development Company.

  1. Contact Masking in the App

Users benefit from utilizing this secure solution by connecting with drivers directly through the app without divulging their phone numbers to them.

  1. Document Scanner In-App

Since most interstate car rental services require users to provide ID documents before availing of the service, having an in-app document scanner is helpful for users.

  1. Document Upload in-App

By taking advantage of this feature, car owners can securely verify and upload license and document copies before renting their car to customers. In contrast, customers can upload them upon rental.

  1. Loyalty Programs

Show your loyal customers how much you appreciate them with loyalty programs like earning reward points leading to free services.

  1. CRM Integration

Customer relationship management (CRM) integration is one of the key features for any app's success, helping customers stay in contact with its support team at all times and acting upon any customer inquiries at once.

  1. Panic Button

Installing a panic button within your app can help maintain order among drivers and passengers during rides, providing users with an alarm button in case anything seems off during their journey.

How Much Does it Cost to Build a Car Rental Mobile App?

Develop a car rental mobile app is a complicated and lengthy process. The development cost will depend on factors like platform choice, design aesthetic, and hire remote mobile app developers to complete it all. Developers typically estimate costs based on which features are included in an app's development. An MVP project typically costs between $10,000 and $35,000, while one with advanced features may cost between $35,000 and $75,000. To get more accurate estimates, we should contact an established mobile app development firm like AGS for an estimate. Let's now examine what factors impact the car rental app development cost. Before beginning your search for mobile app developers for hire, it's crucial that you first understand these costing parameters.


Launching a car rental mobile app development journey requires careful consideration of various factors, including cost and essential features. No matter whether it's Android app development, iOS app development, or both - finding an optimal balance between functionality and budget should always be your goal. Cost factors related to app development can differ drastically, depending on factors like platform choice, app complexity, and the location of your development team. Allocating resources judiciously is crucial; skimping on quality can result in long-term repercussions; investing in user-friendly interfaces, secure payment gateways, and robust GPS tracking can enhance customer experiences while creating trust among your clientele. Furthermore, selecting features is of critical importance. Give top priority to core functionalities like vehicle search and booking, booking payments, payment processing, and real-time tracking to create a seamless user journey. Integrate third-party services like insurance or GPS navigation for additional value add. Stay abreast of user feedback and market trends to refine and expand the feature set of your app continuously.


1. Why are car rental mobile apps so popular?

Car rental mobile apps have quickly become an attractive solution to customers seeking convenience and cost savings. Users can book cars from any location, view available vehicles and their prices, compare rental companies easily, and make payments easily.

2. What are the advantages of having a car rental app for my business?

Establishing a car rental app for your business can bring many advantages. It allows greater transparency of ride details, provides automatic rate calculation, and makes renting cars an efficient process, improving customer satisfaction as well as offering convenience to renting cars.

3. What advanced features should a car rental app include?

Allow in-app calls and panic buttons for both customers and drivers so they don't have to share their real numbers and can notify management quickly in an emergency. Make accessibility simple while designing a comprehensive app to create an optimal user experience.

4. How can I monetize a car rental app?

Your car rental app can generate revenue by charging a commission per rental transaction or selling premium features at a fee. In addition, advertising revenue could also help, as well as providing additional services such as car insurance or GPS tracking.