In addition to offering little incentive for a car owner to rent their car to a complete stranger, Flightcar received a cease and desist letter from SFO, the only airport the company operates at, one week before this funding announcement.
Seeking to disrupt the $10 billion airport car rental business, FlightCar, a sort of Airbnb for airport rentals, allows travelers leaving town to make their cars available for those who are visiting. …it has raised a $5.5 million Series A round, with a number of high-profile investors, including General Catalyst, Softbank Capital, Airbnb founder and CEO Brian Chesky, as well as Ryan Seacrest’s Seacrest Global Group.
FlightCar’s service works like this: Travelers drop their vehicles off at one of the FlightCar lots at an airport where they are available. Incoming visitors can then rent these vehicles at lower rates than they would find at airport rental chains. If a car is rented, the vehicle’s owner is compensated with gas cards equal to up to $10 for each day a car is rented. If not, the vehicle’s owner gets free parking, which by itself could save them up to $18 a day in long-term parking.
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