FlightCar’s Promise Has Yet to Payoff

FlightCar, a San Francisco-based peer-to-peer car sharing program offers consumers a chance to rent their cars and save money on parking. FlightCar

By Sanjay Salomon

October 8, 2014

3 minutes to read

Heading out of town for the long weekend? Have bigger travel plans for Thanksgiving or the winter holidays? If you are a car owner, a peer-to-peer service called FlightCar claims to earn you cash, instead of paying that hefty airport parking fee.

Launched in Boston last year, FlightCar uses a simple business model that aims to offer savings to both sides of the rental car agreement. Car renters gain access to a car for $15 for up to 100 miles a day, a cheaper rate than many car rental companies. Meanwhile, travelers have an opportunity to earn money or offset parking costs when they jet out of town.

But don’t look to get rich on this model. The company pays mileage rates of five to 20 cents per mile, depending on the class of the vehicle, for up to 75 miles. For any trip over 75 miles, an additional 40 cents per mile is added on. Customers typically earn $30 to $40, according to FlightCar co-founder Kevin Petrovic.

Carolyn Hudak, a 30-year-old research fellow at Harvard has used FlightCar on both ends of the equation. She hasn’t earned much from renting her 2001 Mitsubishi Mirage.

“It’s only been rented once and driven less than 70 miles,’’ said Hudak. “I only got $1.75. But they wash your car for free, which is awesome. It feels like good drivers renting to other good drivers.’’

According to the company website, for a car to be eligible to rent, it must meet FlightCar’s requirements. The vehicle cannot be older than 13 years; it must have less than 150,000 miles on the odometer, and must be worth up to $60,000. Cars must also be well-maintained and meet safety inspection and emission requirements.

For those weary about renting their car to a stranger, FlightCar promises to fix scratches or dings and offers owners up to $1 million in liability coverage if something goes wrong. Drivers with “major violations’’ on their records in the last three years, including speeding, driving under the influence, or running a red light, are ineligible to rent.

Jay Audet, a 53-year-old school teacher from Wells, Maine said he was a little nervous about allowing a stranger to drive off with his 2011 Chevy Cruze. In the end, he was impressed with the steps FlightCar took to protect his car during a ten-day trip he and his wife took to North Palm Beach, Florida last Christmas.

“We had the trip planned anyway and said, ‘this is a no-brainer,’’’ said Audet. “You don’t pay for parking and you get money for renting your car. I thought it was great.’’

“They took pictures of the car before and after it was rented, and they washed it before we got back,’’ said Audet. “They have an app to notify the driver that I’m ready to be picked up.’’

How much can FlightCar save you? According to the latest parking rates posted online by MassPort, parking at Logan Airport can cost customers $58 for the first two days plus $29 for each additional day after that. A trip that takes you out of town for ten days could end up costing a car owner $290 in parking. As for car renters, a one-week car rental often starts at $500 per week.

Boston is currently the only city on the East Coast where FlightCar operates. It also works out of San Francisco, Los Angeles, and will open in Seattle soon. Petrovic says the company had its eye on Boston because it can serve a very broad area.

“The beauty of the Boston market is it serves such a large geographical region,’’ said Petrovic. “There are so many options for people when they fly into Boston, including New Hampshire, Vermont, and Connecticut. Boston serves a huge region.’’

Petrovic also said FlightCar is catching on slowly in Boston. He believes this is because the city has not had much exposure with peer-to-peer sharing and needs more time to get comfortable with the idea.

While FlightCar recently raised $13.5 million in first round venture capital financing to continue its expansion, it has also faced plenty of legal challenges. Last year, the company was hit by a lawsuit in San Francisco for not paying fees required of other rental car companies.

Massport, which oversees Logan Airport operations, is keeping a cautious eye on the company. In a statement to The Boston Globe last year, spokesman Matt Brelis said “Massport does not have an operating agreement with the company and therefore we cannot ascertain if they provide the levels of safety, security, and customer service that we expect from companies that do business at Logan Airport.’’ No word yet on whether the agency’s position on the company has changed.