car rental services, Highly profitable business ideas

Car rental services : Power up your earning up to 2 Lakhs per Month

Now the car rental services becoming famous amongst a lot of tourists. Car rental services are in demand as the industrial sector is growing and in a big way in tourism. Even, many cities have a lot of attractions to offer to travelers across the nation and the world. 

It is your forte to provide an expert driver, spick and span car ambiance, and best of fares. Whether for intercity taxis or local cars.

You should integrate a FREE call centre or using the extremely intuitive booking engine on this website. You also can provide a Mobile application for Booking done in Minutes. 

How to start a car rental services business step by step

Some cities are loved for their architectural monuments and the ruins of old buildings which attract tourists from all around the world. While you offer economical car rental in the cities, you must also adhere to full transparency in the billing process. You can do this by sharing the complete fare breakup in advance.

Step 1: Prepare car rental services business plan

Prepare a complete car rental services business plan where you can include all the things such as:- 

1.1 Car rental service has two types:-

Car rental services has two types either you should go with without driver or with driver.

Without Driver:- Here customer can rent a car using follow these 5 steps

    • BOOK-Let the customer search for and book a car on your site or in the Mobile application.
    • UPLOAD LICENSE– Must be a section in the portal to upload their driver’s license and pay a small security deposit.
    • UNLOCK-Your company sends an SMS to the customer about car details 20 minutes before pickup.
 and they will be able to Unlock it via your app.
    • CHECKLIST– Allow them to fill the start checklist in your app. then they would Grab the keys from the glove-box and drive.
    • RETURN-Finally, they will return the car to the same location and fill the end checklist to end the trip.

With Driver:- You can not upload the license on any portal

1.2 How much Vehicle is required to start car rental services business 

you can start car rental services business using more then 2 vehicles that will be more cost effective and revenue generating idea for you otherwise your income is not looking more profitable. 

you can also use Used vehicle for car rental services business effectively that will save your capital during investment. Here is the List of used vehicles selling companies where you can take a look.

      • Cars 24
      • True value
      • Mahindra     

1.3 Which types of vehicles in car rental services

Vehicle Selection is depends on many factors such as targeted customers requirements, Vehicles Capacity, Car Mileage, Long distance, city riding etc. Here you can see some examples that will helpful for your car selection

1. Outstation Cabs

You can choose among cab options like Hatchback, SUVs, Sedans, etc. for your intercity travel.  With services spread across most of the cities in India, you help travelers to travel to their favorite locations without experiencing any hassles. In order to do that, you should offer two types of car rental for outstation:-

    1. Round Trip Car Rental
    2. One Way Car Rental

You can include these Cars as outstation cabs 

    • SUVs:- Mahindra Scorpio
    • Muvs:- Toyota Innova 

2. Local Taxi

Apart from offering best-in-class round trip/one-way and outstation services, you should also provide local car rental service in your local town. People willing to spend a days’ time, can travel in the city visiting popular attractions by booking a local taxi service. Travelers want to explore the city’s oldest monuments – there’s a bit of history in every city.

So they hire a local taxi from your service option for the whole day, If they need you’ll pick them up from the location of their choice and drop them back. For this, You can provide cab options like Indica, Etios, Innova for a local trip. You can offer three types of rentals if you want to give rent a car for Local use:

    1. Full day car rental for 8 hours
    2. Extended full day car rental for 12 hours
    3. Half-day car rental for 4 hours

Here is the list of cars which you can use as Local Taxi Services:-

    • Hatchback cars:- Maruti Swift
    • Sedan Cars:- Maruti Desizre

3. Airport Taxi

You can also provide booking services like cabs for Airport transfers. Integrate provides pickup and drop facilities from and to the Airport. Travelers will pre-book an airport taxi with a portal or mobile application so they can make it to their flight on time. You can offer two flavors if you want to rent a car from your local city available Airport in the city. 

    • Pickup from the Airport
    • Drop to the Airport

Here is the list of cars which you can use as Airport Taxi Services:-

    • Hatchback cars:- Maruti Swift
    • Sedan Cars:- Maruti Desizre

4. Luxury Cars on Rent for special days

On Valentine’s Day, many couples want to go for an outdoor trip. so Valentine’s day is almost Your perfect plan to surprise or launching Luxury cars. Most tourists utilize luxury rental services to make their travel highly luxurious and easier to get the trendy aspects.

Wedding car Rental- You know very well how the Wedding season comes every year. and the booking has been done with the best rental price. so it’s a good idea to renting a fleet of cars for the wedding.

Make sure you giving services while open this kind of services 

    • The cab is on time, and your driver is courteous. 
    • Including the Number of cities where you provide services, and the destinations.
    • Completely transparent billing.
    • You must be a well-trusted brand and it’s the objective to provide top-class services. 
    • Neat and clean cars, trained drivers, best and competitively priced fares are all part of your deals for customers. 
    • You must maintain the flow of services on a regular basis for all Indian operations.
    • you have made the cab fares really affordable that are favourable for people to hire a local car rental. 

 1.4 How Much Drivers is Needed to start car rental services:- 

Number of drivers is directly equal to the number of cars so if you have 2 vehicle then 2 drivers are needed at a time. you can hire the drivers on permanent salary or you can hire on Pay per day basis. 

1.5 Service area & route map:- 

You need to fix serviceable area where you can deliver your car rental service that could be your citywise, area wise, location wise. if you are Mumbai then your serviceable area will be Thane, Navi Mumbai, Kasol, Nagpur etc. 

1.6 Financial planning:- 

you should make a balance between the required capital for start car rental service & your investment.

How Much money is required to invest in car rental services business ?

Minimum 15 Lakhs is required to invest to start car rental services. 

How to get Loan for Car rental Business ? 


1.7 Car rental Service Pricing model & Profits:- 

Make sure yourself with transparent pricing model because it leads your business in faster way. every customer has it’s own budget so every one is looking to get cheaper price for his service. so your main goal is to be give him service at affordable cost and collect good feedbacks. 

You might be thinking that if you would launch a brand new car to services for renting, How much should I make a profit and what returns can I expect? 

No doubt, it’s a lucrative Business model. once set up and run, it would pour your pocket with lots of money.
How much money you can make with the Trip. know here if you renting your car on Uber or Ola.
is car rental service business is 

The calculation for 1 trip

Especially if you can tie up with OLA. Roughly
in a day if your car is making 2 trips from the airport to
the central part of the city.  Expect the
total bill to be around 2000 rupees. From that deduct 3 liters of diesel

Total bill = 2000 rupees
Total fuel expense = 240 rupees (80/litres)
Round it off to = 300 rupees.
Ola charges 15 percent = 300 rupees

Total Profit = 2000 – (240+300 + driver ) = 1460 rupees not including driver fees. Driver fees depend on how you pay them. Follow the model of how other owners are paying them.

Therefore if you have 5 drivers and doing at least 5-10 trips to and from the airport to the central part of town There is a high possibility of making upwards of 10,000 to 20, 000 a day.

With the More expensive cars and keeping more numbers of cars, you can make over 10 Lakhs rupees per month.

Set the Pricing According to This-

  1. Per kilometer based with a minimum km cap per day on the Car Hire. 
  2. Flat fare based on Duration and Usage Time on the local car hire in Raipur.
  3. The flat fare includes toll and parking charges. 

1.8 Safety Measure for your car rental services

We will also suggest connecting OBD (on-board diagnostics )-scanners for Indian-based car devices to increase the profitability of the business. With the help of these devices, you can

1. Track remotely from your smartphone about your car location and the path it has taken
2. Track (from your smartphone) how much exact km a car has been driven per trip with the path of the trip with the time it has taken and average speed so you cannot be cheated.
3. Track (from your smartphone) the exact fuel consumption for each trip. Hence you are protected against fuel theft.
4. You get an alert in case the car engine, coolant, battery, etc have any issue and can take preventive maintenance.

you can prepare safety majors for women & child specially 

Step 2: Learn everything about car rental business

    • Experience:
    • Training:
    • Reading:

Step 3: Business registration & licenses

Car rental service business required to register the business in government and get commercial license & permits for start the business. 

3.1 Business Name

Keep your business name unique, memorable & relatable with your business name. if brain is not storming then you can use business name generators for find good name for your business.     

3.2 Firm Registration

According to your business size you can select the business entity type such as if you are single person who want to start mushroom then you need to register sole proprietorship business registration otherwise you can register Limited lability partnership or private limited company.   

Documents required for firm registration:-

    • PAN Card
    • Aadhar Card
    • Address proof(electricity bill, landline bill)

Step 4: Team Hiring

Hire a Manager who can mange all the cars for payments, car servicing, driver allocation etc. and hire drivers who has clear records and good driving history with proper licences. please make sure his driving license has light vehicle driving permission.

Step 5: How to find the customers for car rental services

There are many ways to get customers for your business such as. you can serve 

5.1 Car rent to government

5.2 car rent to private companies

5.3 Putting a cab with car rental services like OLA, or Uber?

firstly, It depends on the area where you plan to operate (maximum rides, maximum profit). and you must invest in a good car (decent mileage) like Swift/Toyota Etios and have a good driver (excellent driving skills and polite way of behavior).

The second thing is you may have to bear the cost of the car (buy and maintenance) and the driver but will easily get around 15k-30k as profit (again based on the number of services per day) even after Uber/OLA taking their share.

and the most important thing is it purely depends on the area you giving services to. if you could establish in the tourist area, you will have a better market and the huge profit.

one important suggestion for you to do brainstorm. being in this industry for a couple of years now big players are already in the market and survival for new entrants is in touch with such a large cash pile sitting with them. but even though you can start in your market right way to get high profit as many of the car rental businesses don’t know-how to marketize and increase the profits.

5.4 The irresistible offer that customers take advantage of

You should include the following things in your car rental services to attract more customers.

    1. Fuel Cost Included– All fuel costs are included. If they need refill fuel, you can pay them back!
    2. No Hidden Charges-The prices you set up include taxes and insurance.
    3. Flexi Pricing Packages-Choose a balance of time and kilometers that works best for the customers.
    4. Go Anywhere– the cars you renting have all-India permits.
 and say the customers to pay state tolls and entry taxes only.
    5. 24×7 Roadside Assistance– Provide round-the-clock assistance, pan-India partners.
    6. Damage Insurance– The Booking should be including damage insurance! Drive safe, but don’t worry!

Step 6: make your business online

    • Domain name
    • Mobile apps
    • website


Car Rental services have taken a high road in India right now. Many Indians prefer to travel by rental cars than driving their own vehicle. Tourists and first-time visitors had to rely on city buses and other local transport, making their journey a bit difficult in this diversified country.

so the best car rental services in  India and other cities have evolved as saviors for tourists and first-time visitors. The easy access, well-maintained cars, and online bookings have made travel around India easier and fun for both locals and tourists. so start this business and you’ll make a huge profit.

Also Read:

General FAQs

1. is car rental business profitable in India

2. how to give car on rent to companies

3. car rental business plan

4. how to give car on rent to government

5. car requirements for companies

6. car rental business software


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