View this article online: https://www.insurancejournal.com/news/national/2018/03/27/484466.htm
The sharing economy is coming to the truck rental industry.
Truck leasing and rental firm Ryder System is launching an online sharing platform that offers fleet owners with idle vehicles the opportunity to rent their underutilized commercial vehicles to other businesses needing one for hours or days.
Ryder says its new platform, named COOP by Ryder, is a first for the commercial vehicle industry.
Ryder says its research shows about 25 percent of the nation’s eight million commercial vehicles sit idle for more than one day a week, excluding weekends. COOP promises fleet owners an opportunity to generate revenue from these underutilized vehicles. A 26-foot straight truck traveling 100 miles per day, for example, can generate lenders up to $3,300 per month, according to the firm.
In addition, COOP will provide a new source of rental vehicles for businesses seeking additional capacity.
Ryder has been testing COOP since January in the Atlanta metro area with a group of more than 100 fleet owners. Based on the learnings from this initial market launch, COOP will deploy a full rollout to the Atlanta market in April, with several other major markets anticipated in 2019.
“COOP by Ryder aims to revolutionize the optimization and utilization of commercial trucks by helping fleet owners get the most value out of their fleets,” said Robert Sanchez, chairman and CEO. ”
Sanchez said seasonal and cyclical truck shortages, coupled with fleets’ excess and unused capacity, demonstrate the benefit of having a technology like COOP.
Businesses can rent vehicles via this peer-to-peer sharing platform. Fleet owners list their vehicles on the digital platform, set vehicle availability for idle periods, and receive automated payments from business owners. Business owners seeking vehicles can search the platform by location for available vehicles, including vans, trucks, tractors and trailers, and pick up the vehicle from the listed location.
Ryder itself has more than 200,000 vehicles. The company says it is putting its experience in commercial vehicle rental to eliminate some friction points associated with a peer-to-peer sharing network, such as insurance, Department of Transportation compliance, and payments.
Ryder said COOP users are vetted to ensure they comply with safety and reliability standards. Payment is automated and immediate upon the return of the vehicle. Each transaction is covered by physical damage insurance and a $1 million liability policy, along with 24/7 roadside assistance.
COOP is currently a web site. Rider says a mobile application should be available in the fourth quarter of 2018.