Peer-to-peer carsharing, also called peer-to-peer car rental or person-to-person carsharing, is when car owners let others use their personal vehicles for short periods of time. This is a type of sharing that happens in the sharing economy. It is different from traditional car rentals and carsharing services like Zipcar and GoGet because the cars are owned by individuals, not by a single company. Instead of being managed by one business, the cars are spread out and controlled by many different people.

Operation

Peer-to-peer carsharing platforms (such as Turo and Getaround) act as middlemen that check participants, help with booking cars, and handle payments.

The user experience usually includes:

• Owners (Hosts): Share when their car is available and set a price. Platforms usually keep 25% to 40% of the rental fee to pay for insurance, roadside help, and other costs.
• Renters (Guests): Look for cars near them using a mobile app or website, book a car, and unlock it using a smartphone or by receiving a physical key.

Trust and safety are handled through two-way reviews (where hosts and guests rate each other) and checks to confirm people’s identities. However, since the cars are owned by different people, their condition may vary more than in standard rental companies.

History and market trends

The model began in the early 2010s, helped by the use of smartphones and location-based services. Companies that entered the market early tried to change the traditional car rental industry by offering more types of vehicles and easier places to pick up cars.

At first, the industry grew quickly, but it faced strong competition from ride-hailing services, such as Uber and Lyft, for short trips. By the 2020s, the market became more stable, serving as a different choice for longer trips (like multi-day journeys) or special vehicle experiences, instead of just short-term commuting.

In 2024, the global peer-to-peer carsharing market was worth about $3 billion. The industry is dominated by a few major companies. Turo, the leading company, earned $958 million in revenue in 2024. It is the main platform in North America after Getaround stopped operating in the U.S. in 2025 to focus on Europe.

Regulation and insurance

A major challenge for peer-to-peer (P2P) carsharing has been personal auto insurance, which usually does not cover commercial use, such as renting out vehicles. As the industry grew, different areas created their own rules to handle issues like responsibility and taxes.

In the United States, more than 40 states passed laws to separate personal use from rental times. California’s Assembly Bill 1871 (passed in 2011) was an important law that stopped insurers from canceling personal car insurance if a vehicle was used for carsharing, as long as the yearly income from the car did not exceed its costs. By 2026, most states had laws similar to this, requiring P2P platforms to provide state-mandated liability insurance and collect sales tax. These laws helped make P2P carsharing different from traditional rental services.

In other countries, rules often treat "cost-sharing" (carpooling) and "for-profit" P2P rentals differently.

• United Kingdom: The Association of British Insurers (ABI) separates ride-sharing (where passengers pay for fuel) from commercial P2P rentals. For commercial rentals, platforms usually offer a separate insurance policy that replaces the owner’s personal insurance during the rental period. This helps protect the owner’s no-claims bonus.
• Australia: The Australian Taxation Office (ATO) treats P2P carsharing as a business activity. Car owners must report rental income on their taxes but can deduct expenses like platform fees, insurance, and vehicle depreciation, based on how much the car is used for business.
• France: P2P car rentals are common, but platforms set strict rules about the type of vehicles that can be used.

In some areas, like parts of Latin America and Africa, P2P carsharing often lacks clear laws.

• Latin America: In cities such as Mexico City and Bogotá, P2P platforms have grown quickly even without specific laws. This has caused legal problems because P2P vehicles often follow general rules instead of strict transport laws used for taxis or traditional rental services.
• Africa: In countries like Rwanda and Kenya, P2P carsharing helps people who do not have enough public transportation. However, insurance remains a big problem for these services.

Impact

Supporters say peer-to-peer carsharing helps protect the environment by reducing the need to make new cars, since it uses vehicles that are already owned but not used often. Some people who disagree say these services might cause people to use cars instead of public transportation like buses or trains.

People who criticize peer-to-peer carsharing also mention problems with city planning and fairness in business. In areas where many people live, some residents say carsharing causes too many cars to park on residential streets. The American Car Rental Association says peer-to-peer platforms have an unfair advantage because they do not pay taxes or fees that traditional car rental companies must pay, such as those for airports.