Mini pilot lets owners rent out their cars

Diana T. Kurylko From autonews

Mini is launching a pilot program in Seattle that would allow owners to rent out their cars from 2016 and later model years via a company-provided app.

The program will begin on Dec. 15 and is the first in the world to test whether Minis can be rented similar to Airbnb's home rentals to travelers.

Cars can be rented for a minimum of two days via BMW AG's ReachNow car sharing program, which is running in Portland, Ore., and Seattle, and is expanding to Brooklyn, N.Y.

"We believe Mini can play an important role, especially for the group, to try things out," Peter Schwarzenbauer, BMW board member for Mini, Rolls-Royce and motorcycles, said at the auto show here. "We are trying out several new ways of mobility." 

Schwarzenbauer said, for instance, the owner of a Mini convertible who uses it only on weekends could rent the car during the week and "if everything goes good, you could compensate the entire lease payment." 

This kind of arrangement could open Mini to a whole new segment of buyers, he said. 

Mini will recommend fixed pricing to owners. Details aren't firm yet, but if a car is rented for 15 days a month, that would cover an owner's monthly lease payment of $290, Schwarzenbauer said. "Basically, the car is paid for." 

The program will apply only to 2016 and 2017 model year vehicles because earlier ones do not have the connectivity needed to rent a car via a special app, he said. 

"Mini is perfectly positioned to offer this kind of mobility, and if you look at the profile of Mini customers my gut feeling says a lot of Mini customers are doing a lot of Airbnb." 

Mini chose Seattle because "it is the most open," and allows rentals for ReachNow to be left in designated spots on the street, Schwarzenbauer said. "To be successful, you need permission." 

BMW pulled its ReachNow program out of San Francisco because the city did not give permission for the vehicles to be parked on the street. 

"We told all the cities we are in discussion with, if you don't give us on-street parking we do not come," he said. 

ReachNow began in Seattle in April, and BMW has 32,000 customers. The program includes BMW vehicles, Minis and the i3 electric car.

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