Turo sets sights on Manitoba, in talks with MPI

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This article was published 12/01/2023 (1016 days ago), so information in it may no longer be current.

In other car-sharing news, Turo, a mobile app company that has created Canada’s largest car sharing marketplace, is in discussion with Manitoba Public Insurance to launch that service in Manitoba.

Turo allows individuals to make their personal vehicles available to rent on a peer-to-peer platform.

The company, which operates around the world, has said that hosts in Calgary and Vancouver saw an average monthly income of $1,100 during the summer months last year.

Cedric Mathieu, vice-president and head of Turo Canada, said “Turo has just started conversations with Manitoba Public Insurance regarding an insurance product for peer-to-peer car sharing. We’re currently looking at a multi-year process for MPI to create this insurance product for Turo to start operating in Manitoba, but we’re hoping to find a way to streamline this process.”

Since its launch in Canada in 2016, Turo now has more than 1.2 million members and 53,000 cars listed across B.C., Alberta, Ontario, Quebec, Nova Scotia, P.E.I, Newfoundland and Labrador and New Brunswick.

Among other things Turo performs guest screenings, offers 24/7 roadside assistance and a no-charge cancellation policy.

“Given the economic opportunity peer-to-peer car sharing represents for Manitoba residents — offering a welcome new revenue source to all Manitobans and boosting the local tourism industry,” Mathieu said. He said he believes they will be able to come to an understanding with MPI especially considering many rental car companies don’t have enough vehicles to meet travel demand.

Kristy Rydz, a spokeswoman for MPI said, “In order for a vehicle owner to rent their vehicle to others in Manitoba, they would be required to purchase Basic U-Drive insurance.”

That coverage includes a $750 deductible, $500,000 third-party liability coverage and $70,000 maximum insured value.

“Manitoba Public Insurance has engaged directly with representatives from Turo and has participated in preliminary discussions to identify potential products and opportunities going forward,” she said.

Phil Mikulec, managing director of Peg City Car Co-op congratulated Turo on its growth across the country and does not see it as a direct competitor.

“We provide special software and hardware and make bookings in a fine-grained last minute fashion,” he said. “As a company that owns its cars we commit to providing vehicles and keeping them on the road. They’re not private vehicles who decide one day to rent and another day not to. There is certainty with our system.”

Mathieu said it’s taken this long to launch in Manitoba, in part, because of efforts to grow the service across Canada and among international visitors. He said the company was encouraged by interest shown by Manitobans.

“We’ve seen over 20,000 searches for available vehicles in Manitoba throughout 2022 and hundreds of attempted vehicle listings by residents looking to share their vehicles, showcasing that the local demand is strong,” he said.

Turo has benefitted from the difficulties faced by the traditional car rental industry buying vehicles owing to inventory shortages that started during the pandemic.

“In the Atlantic provinces where we most recently launched in May 2022, we saw active guests and hosts grow exponentially as traditional car rental companies struggled to provide vehicles to customers,” he said. “Local residents were able to put their cars to good use and quickly drive a meaningful income. We think a similar opportunity exists in Manitoba and that’s why we’re excited about expanding to the province.”

martin.cash@freepress.mb.ca