The car rental industry is witnessing a major transformation due to the advent of modern technology and the emergence of mobile apps for renting cars, such as Enterprise and Hertz. Car rental app development has changed how customers book cars, providing unbeatable convenience and a seamless user experience. With more and more people turning to these websites for convenient transport, the need for renting cars is growing exponentially. Therefore, investing in car rental apps can create a profitable business opportunity in an expanding market.

The market for car rentals has grown globally, with 73% of that revenue coming via online transactions. The revenue is expected to reach $116 billion by 2028. Car rental was a traditional business that faced many problems, including staying current with the most recent technology, the continuous shortage of vehicles, the growing competition, and the absence of recognition for their brands. That’s why there’s an urgent need for custom car rental solutions.

In this blog, we will discuss how to build an app for car rentals similar to Hertz or Enterprise.

So, let’s get started.

What is Car Rental App Development?

A mobile application for car rentals makes renting a car easier. It allows users to search for available vehicles, select a pickup location and time, select a car type, and then manage their booking. The app assists rental companies in managing their fleets, tracking reservations, and responding to customers’ needs.

Features like real-time car availability, GPS tracking, and close-by locations improve customers’ convenience. The app benefits customers and rental firms by providing an efficient and more convenient rental experience.

The development of a car rental application involves developing a mobile app that allows customers to book, search, and manage car rental bookings using their mobile phones. Stakeholders could be groups of people, individuals, or non-organized groups.

Latest Market Trends in the Car Rental Industry

By 2026, the rental car sector is witnessing several notable developments:

Rise of Electric and Hybrid Vehicles

The trend towards sustainable transport is prompting car rental firms to take on hybrid and electric vehicles. They can better serve eco-conscious customers by enhancing mobile applications with features such as real-time inventory updates and charging stations.

Personalization

Individualization is vital to maintaining customer relationships in a highly competitive car rental market. Mobile apps can provide customized features, such as car options and prices tailored to the user’s preferences, as well as loyalty rewards that can enhance the renting experience.

Integration with Ride-Sharing Platforms

Car rental companies are now combining their services with ride-sharing to meet customers’ diverse needs. Mobile apps can facilitate this process, allowing customers to effortlessly switch between renting a car and utilizing ride-sharing service in the app for car rentals on-demand development process.

Cutting-Edge Mobile Technology

Technology is constantly evolving, and car rental companies must update their mobile applications constantly to stay relevant. Important features such as mobile checking-in, booking management, and real-time vehicle availability are crucial to ensuring an unmatched customer experience.

Use Artificial Intelligence Technology

Integrating AI in mobile apps lets car rental companies analyze user data and provide customized suggestions. This is not just a way to increase sales but also increases customer loyalty with a tailored on-demand car rental app development services process.

Utilize Internet of Things (IoT) Technology

IoT technology allows car rental companies to improve fleet management by providing current information about the vehicle’s location, fuel status, and maintenance needs. In conjunction with mobile applications, IoT enhances the user experience through features such as remote access to vehicles and keyless access.

Key Features Of Car Rental Apps Like Hertz or Enterprise

A reliable car rental application should offer a variety of options to meet the requirements of both users and those who provide the services. An effortless and reliable car rental experience is dependent on the attributes below.

Diverse Vehicle Selection

Hertz offers a wide range of automobiles, from budget-friendly to exclusive. The wide variety of vehicles available ensures that customers can choose the ideal vehicle that meets their needs and requirements, whether planning an unforgettable getaway with the whole family, a relaxing vacation, or a memorable celebration.

Convenient Booking Process

Its Hertz or Enterprise app has a user-friendly interface that makes it easy for customers to search for available cars, compare the costs, and then book rental cars. The app allows “real-time tracking” of reservations and an easy method of communicating between renters and car owners through features like “messaging” and “in-app calling.”

In-App Camera

Taking a photo of the document you wish to share and browsing through the gallery may take time. In-app cameras are available, and users can take photos of their documents and upload them directly from the camera inside the application.

Real-Time Tracking

If you lease automobiles or employ drivers, having GPS on your website is vital. With GPS, administrators and users can monitor the exact location of the rental car and its location on a map. The users can share the location of their car with admins as well as family members to ensure safety.

Online Payment

Because of the popularity of wallets on the internet, paying online has become a breeze. Instead of cash transactions, it’s now possible to make prepaid reservations with a credit or debit card or any of the wallets accessible online. Many car rental applications allow online payments and supply customers with booking receipts.

Uploading Documents

If they’re renting a vehicle, customers can also request drivers. This feature can be used to reserve drivers and book the car if they plan a long-distance trip or a trip with their family members. If you’re booking the rental of a car, it is possible to make an additional option by indicating the vehicle you prefer.

Calculate The Cost Of Fares

App development for on-demand car rental uses an algorithm for calculating prices depending on the car model and the length the customer needs. Customers can estimate the rental cost by calculating the miles they will need the vehicle to cover.

Data Security

If you’re looking for apps that allow you to rent cars on demand and users submit sensitive data to your business. To build trust with users of your application, you need to safeguard your users using the best security practices.

Virtual Vehicle Inspections

Introduce a feature that permits customers to perform virtual inspections of cars before hiring. This can be done with the help of modern technology like AR or 360-degree cameras, which give the renter an accurate view of the state of their vehicle.

Personalized Recommendations

Machine-learning algorithms and AI provide personalized recommendations based on rental history, preferences, and location. They will suggest suitable cars, drop-off and pickup locations, and additional features in car wash app like GPS navigation and car seats.

Integration With Public Transportation

Partner with transportation companies to offer seamless integration between public transport and car hire services. This lets users plan the entire journey, including car rental and public transportation options, all in one application.

Subscription-Based Rentals

Set up subscription-based rental programs that offer discounts on long-term rentals. This could attract frequent renters and offer a cost-effective alternative for those needing an automobile for a lengthy period of time.

Electric Vehicle Charging Integration

For electric vehicles, connect to charging networks to provide real-time information on chargers’ accessibility and pricing. This can help customers plan their travels and ensure that they will be able to recharge at the infrastructure.

Benefits of Building a Custom Car Rental App

In addition to addressing many of the most frequent business issues with regard to car rental, a specific rent-a-car program will allow you to reap the following benefits.

Expanded Market Reach

Making a car rental app like Hertz lets businesses reach a larger market. With the rise of smartphones and increasing Internet usage, growing numbers of people rely on mobile apps for their everyday requirements. That means that by creating your business’s online presence, you can connect with a larger audience and grow your customer base. Tech-savvy customers will be impressed, and you’ll gain an advantage.

Convenience and Accessibility

Car rental app development can enable you to go digital, offering ease of use and a simpler interaction with your company. Customers can use the app via their tablets or smartphones, which allows them to reserve the rental car no matter their geographical location (which will help you increase your customer base, too). Without physically visiting rental locations, customers can save time and energy, and you will cut down on the amount of human resources you need.

Enhanced Customer Experience

The app for car rentals offers many options that can greatly improve customers’ experiences. For example, with the integration of GPS tracking, users will be able to find close rental locations and get directions, which will ensure seamless navigation. 

In addition, push notifications offer immediate updates on confirmations of bookings or rental status and any modifications to reservations. These features help to provide an effortless and transparent rental experience, which increases customer happiness and retention.

Efficient Car Management

A mobile app for car rental can provide efficient and effective car management features that will benefit both your clients as well as your business. For car rental firms like Hertz, this app offers efficient inventory management, precise tracking of cars, and information about availability, location, and prices. The information you collect can be used to maximize resource allocation and increase your operations’ efficiency. 

In addition, users can easily browse the app’s automobile inventory, choose their preferred car, and then book it easily. These streamlined processes help eliminate administrative mistakes and boost the overall satisfaction of customers.

Revenue Boost

With the expansion of market coverage and a wider audience, you’re likely to see an increase in revenue. Since an app for car rentals allows seamless integration of payment processing platforms, you’ll be able to provide safe and secure online transactions and the convenience of a seamless payment. This will draw more customers in and help encourage returning customers. 

Furthermore, the app could aid in the management of other revenue sources, for example, add-ons available as an option such as loyalty programs, insurance plans, and so on. and improve the overall value proposition to customers.

Problems that a Customized Car Rental App can Help you Solve

The car rental industry has many issues, but many can be addressed by digitizing key parts of your business using a specifically designed app for car rentals. Check out if these typical issues are yours. If you can identify a few of them, we’d be happy to discuss how we can assist you in creating an efficient car rental service.

Manual Bookings

Certain rental car companies rely on manual processes, which include phone calls, paperwork, and face-to-face interactions. This isn’t how modern businesses operate. Digital apps simplify the processes you have to manage to eliminate the hassles, paperwork, and manual mistakes. A specific app streamlines the booking process, meaning clients can handle these processes easily and quickly.

Limited Access to Data

Without a specifically designed app, your customers may not be aware of rentals, available vehicle prices, and other policies. Create a car rental application similar to Hertz. You’ll be able to provide your customers with complete and up-to-date information that allows them to make educated choices and quickly compare their options.

Time-Consuming Check-in and Check-out

Check-in and check-out procedures in car rental require extensive documentation, physical inspections, and verification. Software development for car rental can simplify these processes by allowing customers to fill out the required documentation online, upload necessary documents, and perform virtual inspections to reduce the time it takes to wait.

Unclear Pricing and Hidden Costs

Transparent pricing is vital for the car rental business. However, traditional rental methods often confuse clients who are concerned about hidden charges or pricing structures. A specific app will help you present the information you need precisely (including the rental rate, any additional costs, insurance options, and fuel policy). This increases confidence and prevents unwelcome surprises for your customers.

Limited Availability of Vehicles

Customers often struggle to locate a car suitable for their needs during peak season or in specific areas. A car rental application can provide them with up-to-date information about car availability and help them find the most suitable vehicle ahead of time.

Complicated Payment Systems

Traditional methods of payment for car rentals typically involve cash and credit card payments at rental locations. An app specifically designed for this purpose can incorporate security-grade credit card processing systems, which allow customers to pay online easily. This removes the need for physical transactions and improves the overall experience of renting.

Limited Customer Support

It can be difficult for customers to reach support from customer service or receive prompt assistance when faced with problems with their vehicle. Rent-a-car apps may include features like chat in-app support, email support, and a designated helpline, guaranteeing rapid and effective customer support.

Vehicle Return Hassles

Returning a car rental is time-consuming and requires manual inspections, paperwork, and coordination with the rental company. Specific software for car rentals will make this process easier by permitting customers to submit digital check-in reports, upload photos, and fill out the necessary paperwork electronically. This is an advantage for both rental companies.

Lack of Personalization

Traditional car rental services are often not personalized and lack rewards programs for customers. A dedicated app could incorporate rewards programs, loyalty programs, and customized offers based on the customer’s preferences and rental histories, which can help build customer satisfaction and loyalty.

Steps to Create a Car Rental App Like Enterprise or Hertz

Custom car rental app development like Enterprise or Hertz is an organized series of steps essential to ensure the success of its start-up and operational success. Here’s a thorough description of each step:

Market Research

Conducting extensive market research is the first step to developing your car rental application. Begin by studying rivals like Hertz, Enterprise, and Zipcar. Study their pricing models, customer reviews, and marketing strategies to learn what works and what does not.

Define Core Features

When you’ve firmly grasped the market, it’s time to establish your application’s key characteristics. The most important functions include user registration and login features, where users can set up accounts or utilize social media logins to make it easier.

Design the User Interface (UI)

User experience (UX) is created during the designing stage. Begin by creating wireframes to outline the app’s layout and its user journey while ensuring an orderly flow from browsing to making a reservation. Make sure to create an easy-to-use, simple design that focuses on interaction with the user by using tools such as Figma and Adobe XD for prototyping.

Choose the Technology Stack

The right technology stack is essential for an app’s performance and capacity. Front-end development frameworks such as React Native or Flutter are highly sought after due to their ability to develop cross-platform applications using one codebase. Based on the team’s experience and your project’s requirements, consider using Node.js, Python, or Ruby for the backend.

Develop the App

Using an agile method in development allows for incremental improvements and the ability to adapt to changing requirements. Begin by creating the front end, ensuring the application is responsive and visually matched to your design. In parallel, you should set up the backend, establishing an API architecture for servers to allow interaction between front-end developers and the backend Hertz application development.

Testing

Quality assurance is a crucial measure that should be analyzed. Perform thorough testing, including unit, integration, and user acceptance tests (UAT), to ensure that the app functions as intended. In this stage, you will be able to find and fix any bugs while also optimizing the user experience. Following internal testing, think about opening a beta version of the application to a limited user group.

Launch the App

Preparing for launch includes many steps, starting with submitting your application to both the Google Play Store and Apple App Store and making sure that all the compliance requirements are satisfied. Each platform has rules to follow, and preparation is vital.

Post-Launch Support

Maintenance and support are essential to ensure long-term success when the app launches. Check the app’s performance with analytics tools to monitor customer engagement, booking patterns, and any possible problems.

Scale the Business

If your users’ numbers increase, consider strategies to grow your company. This might mean increasing the number of vehicles you have, adding new features, like loyalty programs, or integrating services such as insurance options.

Compliance and Legal Considerations

In addition, it is crucial to consider the legal requirements of running the car rental business. This involves obtaining the required permits and adhering to local regulations for renting vehicles.

Cost of Car Rental App Development

A simple cab-riding application that includes essential features such as registration for users, car listings, and the ability to book cabs can cost anywhere from $10,000 to $20,000. A more sophisticated app with additional features, such as integrating a secure gateway for payments and managing your profile for users, could cost anywhere from $30,000 to $80,000. 

Finally, with full-featured car rental software that has the latest features, like real-time tracking, as well as advanced built-in vehicle and business engagement analysis, you could need to pay up to $150,000 or more.

Breakdown of Car Rental App Development Cost

Here is an overview of the possibilities of the costs involved in creating car rental apps of various complexity.

Simple App with basic features

  • Login/User Registration: The basic authentication system.
  • List of Cars Available: A listing of vehicles available with more information.
  • Reservation System: A basic calendar-based system for booking.
  • Cost Estimate: $10,000 to $20,000

Medium Complexity App

  • Advanced Search Filters: Sort vehicles according to type, price, etc.
  • Integration with Payment Gateways: This is for paying securely.
  • Manage User Profiles: This is used to manage bookings and the history.
  • Push Notifications: Inform users to confirm bookings or other promotions.
  • Cost Estimate: $30,000 to $80,000

Complex App

  • Real-Time Tracking: Allows customers to track their reserved car.
  • Price dynamically: prices fluctuate in response to demand and other elements.
  • Integrating loyalty programs to keep customers.
  • Advanced Analytics Built In: To gain insight into business from user data.
  • Third-party integrations include GPS navigation or roadside assistance.
  • Cost Estimate: $90,000 to $150,000

Monetization Model Of Rental App Development

Car rental services provide vehicles and other amenities to customers. This is why this industry assists service providers in generating high revenues and operating efficiently without letting any issue affect the revenue models. Let’s take a look at the revenue sources for car rental companies:

Car Fleet of Their Own

Service providers must create large businesses that require substantial investment. The business must purchase vehicles and assign them to numerous drivers. The drivers receive the base rate that the client pays in exchange for services. Drivers are paid each month or on the basis of each service they provide. A very well-known application, Hertz, follows this business model of car wash apps.

Commission-Based

This is a little different in that car owners are given a platform to use under one of the apps that provide car services and are paid based on the number of bookings. A portion of their profits is paid to app developers. Another alternative to this model is that car owners could donate their vehicles to a driver who makes reservations and drives the car to the cities.

Customers can use the service half-day, hourly, or whole-day. The package also includes Airport pickups and drop-offs.

Freemium (with ads in-app)

If you opt for this method of monetization, you could first let users download your application for free. Then, you may partner with app ad companies that pay a fee to display their advertisements in other applications.

In addition, it helps gather data about users, such as in-app behavior and other data. This data can be utilized to develop targeted marketing campaigns.

Freemium (Gated Features)

Let users download your app for free access to the basics and then charge them for additional features and tools. You can charge them a sum in advance for access to more advanced features.

Paid Apps / Subscription Plan

This business model indicates that your app would not be available for free; users would need to pay an amount (fixed/monthly/annually) to purchase it from the app stores.

All you need to do is catch users’ attention by providing captivating screenshots, reviews, scores, useful features, and much more, which will allow you to remain distinct from the rest of the pack.

Best Practices to Ensure Your Car Rental App’s Success

You are aware of the attributes your app needs. However, the marketplace isn’t static, and you have to adhere to certain standards to stay in touch with the development of car rental apps in the near future.

This is an illustration of the app for car rentals’ best development practices, such as the importance of UI/UX design, protecting data, providing customer support, including analytics, and frequently making changes to the application.

Focus on UI/UX Design

No matter how trends alter, you need to offer a pleasing and easy-to-use interface. While you can alter the style with time and create a new “look,” a clean and tidy design should be the main focus of any future guidelines.

Ensure Data Security

You shouldn’t be a threat to your user’s security; it will be the center of attention whenever you’re asked to search for your business’s name. Implement data encryption, secure your servers, and ensure that your application complies with your nation’s rules. Prepare a plan of action in the event of an attack on your security.

Provide Customer Support

Alongside the functionality that will simplify customer management, it is essential to train staff who can respond to user queries and resolve disputes swiftly. You must make your customer service responsive and flexible, depending on the particulars of your business. It is recommended that the service be available 24/7.

Incorporate Analytics

Your analytics (or their absence) can be the determining factor in your success or failure. Use the data on user behavior, market trends, app performance, and booking changes to devise innovative solutions, continuously improve, and boost your popularity.

Regularly Update the App

Make sure the application is up-to-date with the latest functions, bug fixes, and performance improvements. Even the top programs need occasional updates, which will ensure you remain competitive with your competition.

Conclusion

Developing a successful car rental site like Enterprise or Hertz is a huge undertaking. It requires careful preparation, technical expertise, and solid marketplace knowledge. This guide has discussed the most important aspects of building a car rental portal that stands out from the development of the car rental portals world.

We’ve reviewed the latest trends in the market, methods, features, and benefits. Each section has provided essential tips to guide you in your journey. You can also hire a car rental app development company who will assist you in making your car rental plan become a possibility.

The process of creating a successful car rental site is not without many obstacles. With perseverance, imagination, and a keen eye on your target market, you can make an online platform that provides excellent value. Be prepared for the challenges ahead, be flexible, and stay on top of developments in the marketplace to ensure your platform’s long-term success. 

FAQs

What are the stages of development of a car rental app included?

The development of mobile apps for car rental is a process that involves several stages:

  • Discovery stage
  • Idea validation
  • UX strategy
  • Design and development
  • Testing and improvements

How does the app for car rentals function?

The main goal of the car hire application is to make it easier for users to meet their car rental requirements. It’s working. Users can create their accounts, select a place to rent, choose the type of vehicle to rent, pay for the rental through various payment options, and then drive the car.

How do you ensure the safety and security of those using applications to rent cars?

Security and safety are important factors in car rental applications. Conduct background checks and check documents to verify that customers are real. Secure transactions and payment gateways are crucial. Establish rules and guidelines that individuals can easily comprehend and understand.

How do car rental companies make money?

Car rental companies make money from commissions on vehicles, reservation commissions, platform commissions, etc.