Car Sharing Business

Sharing a car can mean lending your own, booking a fleet by the hour or sharing journeys. Each model has different legal, trust and money needs.

• Peer-to-peer: owners rent their cars to others through a platform. Needs strong identity checks and clear damage rules.
• Fleet sharing: one operator owns cars, members book by the hour. Needs capital, parking and maintenance.
• Carpooling: people with spare seats share trips and fuel costs. Needs matching and safety rules.
• Choose by density, trust and parking in your community.

Activity. Compare the three models for one community in a table and choose one with reasons.

Standard to meet. Build a table with pros, cons, capital needed and risks, and justify the choice.

Sharing can void ordinary insurance. Check before the first trip.

• Ask the insurer in writing what is covered when the car is shared, who is a named driver, and what is excluded.
• Check licence, registration, tax and commercial rules for charging fees.
• Write terms: damage, fines, fuel or charge, cleaning, late return, accidents.
• Keep copies and update yearly.

Activity. Build a legal checklist with a source for each item.

Standard to meet. Record for each item an authority or insurer, an answer and a date.

You are responsible for who drives your cars.

• Check licence, age, driving record and ID documents.
• Set minimum experience and a trial drive for new members.
• Re-check licences monthly and block expired ones automatically.
• Protect personal data and explain how it is used.

Activity. Write the vetting steps and a monthly routine.

Standard to meet. Cover document check, trial drive, expiry and data protection in the steps.

A clear handover prevents most disputes.

• App or form: choose car, time, deposit.
• Photograph the car, fuel or charge level and mileage at pickup and return.
• Late and cancellation rules; support line.
• Release the deposit within 48 hours of a clean return.

Activity. Design the booking and handover flow in eight steps.

Standard to meet. Include times, photos and deposit rules in the flow.

Know the cost per hour and per kilometre before setting prices.

• Fixed costs: insurance, loss of value over time (depreciation), parking, tax. Variable costs: fuel or power, tyres, servicing.
• Cost per hour = fixed cost per day / hours available; cost per km = variable cost / km.
• Utilisation = hours booked / hours available; break-even depends on it.
• Show members an example bill before they book.

Activity. Build a cost sheet and price three sample trips.

Standard to meet. Check that the maths is correct and show the currency.

Plan for breakdowns, accidents and misuse.

• Emergency numbers in the car and the app; first-aid kit and warning triangle.
• Steps: make everyone safe, call help, photograph, report, record.
• Roadside help and a replacement car plan.
• Incident log and monthly review.

Activity. Write an incident plan and run a mock breakdown.

Standard to meet. Plan has steps, contacts and a recorded mock run.

A shared service should include people with fewer options.

• No discrimination in access; clear and equal vetting rules.
• Offer pay-as-you-go, lower deposits or a payment plan for low-income members.
• Provide accessible options such as hand controls where possible.
• Publish fees and an appeals route.

Activity. List fairness rules and a fee cap.

Standard to meet. Write rules that are clear and apply to all.

Test small and measure.

• Start with one car and 20 members for 30 days.
• Measure utilisation, damage per 100 trips, member score and cost per trip.
• Fix the top three problems.
• Decide: grow, change model or stop.

Activity. Write a pilot plan with targets and a decision rule.

Standard to meet. Set targets as numbers and state a stop rule.

L1: learner can name models. Focus module: Models of car and ride sharing (Understand, 3 h). Sharing a car can mean lending your own, booking a fleet by the hour or sharing journeys. Each model has different legal, trust and money needs. Key points: Peer-to-peer: owners rent their cars to others through a platform. Needs strong identity checks and clear damage rules. Fleet sharing: one operator owns cars, members book by the hour. Needs capital, parking and maintenance. Carpooling: people with spare seats share trips and fuel costs. Needs matching and safety rules. Choose by density, trust and parking in your community.

Speaker notes. Teach: open with the worked example. A residential building with 120 flats and few parking spaces runs two shared cars booked by the hour. A village with long commutes starts with carpooling because it needs no vehicles. Then set the activity: Compare the three models for one community in a table and choose one with reasons. Mark against the standard: Build a table with pros, cons, capital needed and risks, and justify the choice. Check at this level: Name three models. Model answer: Peer-to-peer, fleet, carpool.

L2: learner knows legal basics. Focus module: Legal checks and insurance (Apply, 5 h). Sharing can void ordinary insurance. Check before the first trip. Key points: Ask the insurer in writing what is covered when the car is shared, who is a named driver, and what is excluded. Check licence, registration, tax and commercial rules for charging fees. Write terms: damage, fines, fuel or charge, cleaning, late return, accidents. Keep copies and update yearly.

Speaker notes. Teach: open with the worked example. An insurer confirms cover only for registered, declared vehicles and named drivers. An undeclared sharing claim would be refused, so the service declares every car and driver. Then set the activity: Build a legal checklist with a source for each item. Mark against the standard: Record for each item an authority or insurer, an answer and a date. Check at this level: Why special insurance? Model answer: Private cover may not apply.

L3: learner can vet and book. Focus module: Vetting drivers and identity (Apply, 4 h). You are responsible for who drives your cars. Key points: Check licence, age, driving record and ID documents. Set minimum experience and a trial drive for new members. Re-check licences monthly and block expired ones automatically. Protect personal data and explain how it is used.

Speaker notes. Teach: open with the worked example. A monthly licence expiry report blocks three members until they upload new documents. Then set the activity: Write the vetting steps and a monthly routine. Mark against the standard: Cover document check, trial drive, expiry and data protection in the steps. Check at this level: Name a vetting check. Model answer: Licence and ID.

L4: learner can run a day. Focus module: Booking, handover and return (Apply, 4 h). A clear handover prevents most disputes. Key points: App or form: choose car, time, deposit. Photograph the car, fuel or charge level and mileage at pickup and return. Late and cancellation rules; support line. Release the deposit within 48 hours of a clean return.

Speaker notes. Teach: open with the worked example. A 2,000 INR deposit is held and released after a clean return. Photos show a new scratch from the previous driver, who is charged. Then set the activity: Design the booking and handover flow in eight steps. Mark against the standard: Include times, photos and deposit rules in the flow. Check at this level: Why before-and-after photos? Model answer: Prove damage.

L5: learner can price. Focus module: Costs, pricing and break-even (Analyse, 5 h). Know the cost per hour and per kilometre before setting prices. Key points: Fixed costs: insurance, depreciation, parking, tax. Variable costs: fuel or power, tyres, servicing. Cost per hour = fixed cost per day / hours available; cost per km = variable cost / km. Utilisation = hours booked / hours available; break-even depends on it. Show members an example bill before they book.

Speaker notes. Teach: open with the worked example. Fixed cost 520 INR per day and variable 7 INR per km. A 4-hour, 40 km trip costs about 208 + 280 = 488 INR. At 40 per cent utilisation of 10 available hours (4 booked hours), the 520 INR fixed cost needs at least 130 INR per booked hour before any variable cost. Then set the activity: Build a cost sheet and price three sample trips. Mark against the standard: Maths is correct and currency is shown. Check at this level: Cost per km components? Model answer: Fuel, wear.

L6: learner can lead. Focus module: Fairness, access and community (Evaluate, 3 h). A shared service should include people with fewer options. Key points: No discrimination in access; clear and equal vetting rules. Offer pay-as-you-go, lower deposits or a payment plan for low-income members. Provide accessible options such as hand controls where possible. Publish fees and an appeals route.

Speaker notes. Teach: open with the worked example. A rule offers hand controls on request, with notice, and caps late fees so they cannot exceed the hourly rate. Then set the activity: List fairness rules and a fee cap. Mark against the standard: Rules are clear and apply to all. Check at this level: Fairness rule example? Model answer: Equal access.

L7: learner can audit. Focus module: Pilot and launch plan (Create, 4 h). Test small and measure. Key points: Start with one car and 20 members for 30 days. Measure utilisation, damage per 100 trips, member score and cost per trip. Fix the top three problems. Decide: grow, change model or stop.

Speaker notes. Teach: open with the worked example. The pilot reaches 60 per cent utilisation, one minor damage and a member score of 4.4 out of 5. The team adds a second car near a station. Then set the activity: Write a pilot plan with targets and a decision rule. Mark against the standard: Set targets as numbers and state a stop rule. Check at this level: What is a pilot? Model answer: A small test.