On Strategy Showcase: The Story Behind Turo, the Airbnb of Cars
Hosted by Fergus O’Carroll
Episode Details:
- Title: The Story Behind Turo, the Airbnb of Cars
- Host: Fergus O’Carroll
- Guest: Matt Kerbal, Global Head of Brand Strategy at Turo
- Release Date: July 20, 2025
Introduction
In this episode of On Strategy Showcase, Fergus O’Carroll delves into the innovative world of Turo, often referred to as the "Airbnb of cars." Joining him is Matt Kerbal, Turo's Global Head of Brand Strategy, who offers an in-depth look into the brand's journey, strategies, and market dynamics.
Understanding Turo
Fergus introduces Turo as a peer-to-peer car-sharing service that has grown into a billion-dollar brand over 15 years. He sets the stage for a conversation about how Turo differentiates itself in a crowded market.
Matt Kerbal describes Turo succinctly:
“Turo, the easiest way for people to think about it is it's like Airbnb, but instead of vacation rental properties, it's cars.” [03:47]
He elaborates that Turo connects car owners (hosts) with individuals needing rental cars (guests), emphasizing the platform's community-driven aspect.
Turo’s User Experience
Fergus contrasts the traditional rental experience with Turo’s streamlined approach:
“With us, it's all done in the app. And then you work directly with the host to figure out where to grab the car up.” [05:24]
Matt highlights the simplicity and efficiency of using Turo:
“There is no rental counter there. There is no need to have to deal with everything that comes with that, which varies from airport to airport...” [05:24]
He underscores the convenience of managing rentals entirely through the app, eliminating long lines and cumbersome paperwork associated with traditional rental services.
Growth and Market Position
Despite being a well-established brand, Fergus notes that Turo wasn't always on his radar, sparking a discussion on Turo’s impressive growth trajectory.
Matt shares Turo's evolution:
“We actually started back around 2010 by Shelby Clark. It was a company called Relay Rides... around 2014, they decide to rebrand as Turo.” [07:04]
He outlines how the rebranding shifted Turo from short-term, hourly rentals to a daily rental marketplace, significantly expanding its use cases and market reach.
Challenges in Market Penetration
Transitioning from early adopters to the early majority presents unique challenges. Fergus points out that despite Turo's substantial revenue, awareness might still be lacking.
Matt acknowledges this stage:
“We're still early. Yeah, absolutely. I mean, if you...” [13:25]
He explains that even with significant growth, reaching a broader audience requires building trust and addressing customer doubts—key components in converting consideration into actual use.
Insights from Tracksuit Data
Fergus brings in insights from Tracksuit, highlighting Turo’s brand awareness and demographic performance.
Matthew Herbert from Tracksuit provides data:
“They have about a 28% awareness. They convert people through the funnel really well but just not enough people know about them.” [11:19]
He contrasts Turo’s awareness with traditional rental giants like Hertz and Avis, which boast higher recognition rates. Furthermore, he notes Turo’s strong performance within specific demographics:
“Turo is over indexing in that 18 to 44 year old demographic, over indexing in high income households, over indexing with families or school-age kids.” [11:43]
Marketing Strategies and Emotional Connection
The conversation shifts to Turo’s marketing strategies, focusing on building both pragmatic and emotional connections with consumers.
Matt emphasizes the importance of emotional branding:
“You can't just jump from the first date to marriage. There is a messy middle, and we need to crush the messy middle for everyone.” [22:21]
He discusses how Turo aims to blend rational benefits—like convenience and cost-effectiveness—with emotional appeals that resonate with users’ desires for control and personalized experiences.
Fergus adds insights on emotional versus pragmatic marketing:
“Airbnb did it by creating an emotional connection to the brand... For Turo, the rental counter is starting me off from a point of frustration.” [23:03]
Matt responds by elaborating on Turo’s broader mission:
“People want to feel one, valued and two, in control... We're thinking bigger, we're thinking about the bigger pain behind the pain.” [16:40]
This approach positions Turo not just against traditional rentals but also as a facilitator of positive, community-driven experiences.
Conclusion
Fergus wraps up the discussion by acknowledging Turo's strategic positioning and the insights shared by Matt Kerbal.
Matt leaves listeners with a call to action:
“For anybody that's curious about this, go download the Turo app, check it out.” [23:53]
Fergus concludes by thanking Matt and encouraging listeners to explore Turo’s offerings.
Key Takeaways:
- Turo’s Unique Positioning: Drawing parallels with Airbnb, Turo leverages a community-driven model to differentiate itself from traditional car rental services.
- User-Centric Experience: The app-based, streamlined rental process enhances convenience, reducing the hassles associated with conventional rentals.
- Growth Amidst Challenges: While achieving significant revenue, Turo continues to navigate the shift from early adopters to mainstream users, focusing on building trust and expanding awareness.
- Data-Driven Insights: Targeting specific demographics where Turo excels allows for more effective marketing and user acquisition strategies.
- Balancing Pragmatic and Emotional Marketing: Turo aims to address both the functional and emotional needs of consumers, fostering a deeper connection with the brand.
This episode provides a comprehensive overview of Turo’s strategic initiatives, market challenges, and the innovative approaches that have propelled it to a billion-dollar status in the competitive car-sharing landscape.