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A New Way to Rent a Car Two San Francisco-based startups, RelayRides and Getaround, have teamed up to create a new kind of car-rental company -- one that allows car owners to rent out their vehicles.

By Matt Villano

Opinions expressed by Entrepreneur contributors are their own.

Andre Haddad and Sam Zaid of RelayRides and Getaround

There are few investments less sensible than car ownership. A new purchase loses close to 9 percent of its value the minute it leaves the dealer's lot, according to automotive-information site Edmunds. Further, most cars sit idle the majority of the time.

Two San Francisco-based startups, RelayRides and Getaround, are working to change these inefficiencies--and snag a piece of the nation's $20 billion car-rental market. Similar to Airbnb, both companies facilitate peer-to-peer transactions through which car owners can rent out their vehicles to those who need them by the hour, day or week. Owners set the rental price for their vehicles; both companies say the average rental runs $8 to $12 per hour and lasts 40 hours.

The Disruptors: 2013

Disrupters: Andre Haddad, Sam Zaid
Companies: RelayRides, Getaround
Big idea: Allow car owners to rent out their vehicles safely

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