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This ‘Brutal’ Battle Could Affect Your Next Car Rental | Forbes

In Arizona, two bills are on a collision course in the state legislature, and the outcome could directly affect your next car rental.

It’s a drama that’s playing itself out in at least 30 other states, part of what one lobbyist called a “brutal” regulatory battle pitting legacy car rental companies against peer-to-peer car sharing startups. A car sharing company is like Airbnb for cars. The coming months will be decisive for services such as Getaround and Turo, as the new companies, face all but certain regulation by many states.

But just how they will be regulated remains an open question. The car rental industry wants lawmakers to regulate them as if they are car rental companies, subjecting them to the same safety, insurance and tax regulations. Peer-to-peer companies say they are not car rental companies and are pushing for a different set of rules with less stringent tax and insurance requirements.

Consumers have a stake in the outcome of this conflict. Peer-to-peer companies say overregulation could rig the market to favor car rental companies, eliminating competition and raising prices. Car rental companies counter that underregulation may tip the scales for the startups, giving them an unfair advantage. That could disadvantage car rental companies and, down the road, lead to fewer ground transportation options, they say.

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This ‘Brutal’ Battle Could Affect Your Next Car Rental.