San Francisco Bay Area Car Rental Startup Faces Lawsuit

By Mihir Zaveri | July 1, 2013

  • July 1, 2013 at 1:29 pm
    Captain Planet says:
    Hot debate. What do you think?
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    This seems like the right place to warn everyone about a car rental company called Payless. DO NOT RENT FROM PAYLESS! They ruined my sister’s destination wedding and my vacation. They scammed nearly $800 from my credit card company. It is by far the worst company I have ever dealt with and they don’t provide any customer service. They couldn’t care less about you, which is why I suggested they change their name to Care Less Car Rental. BUYER BEWARE!

    • July 1, 2013 at 2:28 pm
      D says:
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      Payless?? You get what you pay for.

      • July 3, 2013 at 4:33 pm
        Captain Planet says:
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        6 thumb downs, really? So, thumber-downers, do you have relatives that work for Payless?

        D – actually, it’s you get what you pay less for. Lesson learned.

        • July 8, 2013 at 11:17 am
          JMJ says:
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          you’re getting thumbs down bc your story has nothing to do with the article. Go to yelp and give them a bad review there. This is not the place.

  • July 1, 2013 at 1:44 pm
    Lou Landini says:
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    Good for them. What a great idea. Wish I’d thought of it. There attitude is great. To everyone that want to stop them, they can go to hell. This is America!!!!

    • July 1, 2013 at 3:35 pm
      ExciteBiker says:
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      Suspect the issue is more along the lines of “yes, you are definitely an airport car rental business, and yes you have to pay tax like Hertz, Avis, Enterprise, Budget and all the other car rental businesses–often operating from offsite lots–have to do.”

      It is an interesting idea. I wonder how many of the vehicles signed up for rentals by new customers without connection to the company or founders are vehicles which would make it into the rental fleets of their competitors. I do not frequently rent cars, but the cars I have rented (on a budget!) have never been 6-year old Hyundais or 11-year old Acuras. And what would keep someone from opening a competing business other than a questionable business model patent? And what happens when the big dogs start playing hardball?

      • July 2, 2013 at 1:47 pm
        Nebraskan says:
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        If anything, I hope it drives the prices of car rental companies down. I rarely rent cars myself and always get frustrated when I find a good deal but then when I show up, the price triples (that will be $9.99 per tire if you want to rent a car with tires).

        Although, it is fun to drive a car I would never buy for myself. My last rental was a Nissan Ultima. That’s what I call fancy.

    • July 8, 2013 at 11:29 am
      Whodathunkit? says:
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      Couldn’t agree more Lou. Innovation should be rewarded not attacked with crazy regulations.

  • July 1, 2013 at 4:55 pm
    wvagt says:
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    I bet the lawyers are just sitting back licking their chops, waiting for the first serious accident in a rented car. Let’s see, how many defendants will there be? Wonder if the owners’ insurance companies know the cars are being rented?

    • July 1, 2013 at 5:34 pm
      SteveB says:
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      wvagt: I believe if the owner reads their policy, they will find an exclusion for this situation. I see nothing positive for the insured if their vehicle is involved in an accident while being rented. Personally, I’ll pay for the parking!

    • July 8, 2013 at 11:15 am
      LaughingMouse says:
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      I wondered something similar. If I did this, would my own insurance cover anything at all? I would agree that it probably has a specific exclusion for exactly this type of situation, especially since it would probably fall under the “for profit/gain” type idea rather than just loaning it to a friend. The article says everything is insured blah blah blah and oh there is a $1 mill umbrella. Who in god’s name is writing THAT policy??? That’s my question.

    • July 8, 2013 at 2:35 pm
      FLagent/ins says:
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      While this sounds like a great idea, it will be shut down the first time one of the car owners insurance companies get sued and there is no coverage. Most definitely an attorney will go after the poor sap that allowed their car to be rented just to save $10 a day. What about wear and tear on your vehicle? Where is the savings? I rent cars all the time, I want new, clean, not smoked in and with all the updated electronic equipment. Not to mention this company was started by 19 year olds?

      • July 8, 2013 at 3:55 pm
        LaughingMouse says:
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        don’t knock the 19 year olds. They are some of the most ingeneous people in the world. The rest I mostly agree with you on. :)

  • July 2, 2013 at 9:03 am
    tw says:
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    why are there hundreds of cars sitting at the parking lot? Because they belong to private owners who worked hard to buy them and would prefer for them to sit idle and rest for a week instead of who the heck knows and does what driving it!

  • July 3, 2013 at 9:37 am
    Libby says:
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    I probably wouldn’t rent my car out, but I see the ingenuity of the idea and appreciate the entrepeneurial spirit of these guys. We need more young people like this in business and government. Then maybe some new and creative ideas can be fostered instead of the same old, same old.

  • July 8, 2013 at 11:21 am
    Tom says:
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    Basically the 3 big rental car companies control the buisness. There is very little competition in this industry so I applaud any effort to provide an alternative.

    • July 8, 2013 at 11:47 am
      InsGuy says:
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      Tom – I think this has more to do with Airports than it does the renatal car companies. The articles stated that they get 10% of revenue plus a $20 transaction fee.

      My question is, if the company is off airport property, why would they get a fee? As a customer, they don’t own rights to my consumption just because I fly through their airport. Their rights to me end when I pass through their toll booth.

      Sounds like a RICO issue to me.

  • July 11, 2013 at 11:13 am
    LiveFree says:
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    The issue here is of course over regulation from crony capitalism, unions, and bought out politicians or whichever vehicle they decided to use to create free competition barriers. God forbid their be some competition and new entries into the car rental market with a new innovative idea that will only help to evolve and advance the industry even if it ends up failing. Protectionism, unions, and corrupt politics is the biggest economic problem in this country in my opinion. It the real reason that the rich get richer and the poor poorer. This right here is why people are right when they say we don’t have a truly free capitalist society. Just sickening.



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