So back in July when we heard the original idea behind FlightCar I thought this group of teenage ivy league dropouts was absolutely crazy. Their Cincinnati startup FlightCar is a crazy idea. Their simplest pitch, “let someone else rent your car while you’re traveling” seemed a little far fetched. Combine that with the fact that there’s maybe 10 years driving experience between the three of them and even less business traveling experience, and I was totally disconnected.
Sometime during Wednesday’s demo day for the Brandery though my opinion totally changed.
There are hundreds of thousands of rental cars available at just the top 30 airports in the United States. There’s also hundreds of thousands of cars that sit in long term parking lots at those same airports. FlightCar solves this problem.
Using the FlightCar platform somebody about to go on a trip can sign up to rent their car for the rate they want and the mileage they’ll allow. They indicate what time the car will be available and what time it will need to be back by. When they arrive at one of Flight Car’s satellite parking lots they are greeted by a friendly FlightCar team member who takes their keys and their car. FlightCar then cleans the car and waits for the renter.
The renter checks the FlightCar website and can see what’s available by kind of car, time available, mileage allotment and price. Because this is a peer to peer sharing product there is much more variety in the cars available than your standard 5 model rental car lot. Did we mention this is also a lot cheaper.
FlightCar rentees keep 65% of the cost of the rental after taxes and fees, so rather than spending money on long term parking they’ll make money off the rental itself.
FlightCar is beta testing in Cincinnati and plans to bring San Jose and Oakland online in the next month.
As a very frequent business traveler my biggest concern was what if I rent my car out using FlightCar and when I get back from my trip the car is not back yet, or worse in an accident.
On the accident side, FlightCar has a million dollar insurance policy on each vehicle. They’ve secured this policy through the only insurance company currently insuring peer-to-peer car rental companies. Not only that but they have secured a deal with their insurance company that prohibits that company from insuring a competitor. That’s something investors will love.
On the pure timing side, the FlightCar guys said customer service is of the utmost importance to them. Their lot attendants will have the authority to give you another rental until your car comes back or get you a ride to wherever you need to go, and then bring your car to you.
See what this amazing trio of young entrepreneurs has cooked up in their pitch video below. They are currently raising $850,000 and have $200,000 committed. They should have no problem raising the entire round, and quickly.