Drive lah, a new app touted as the Airbnb for cars, has been launched in Singapore.

It is founded by Dutch entrepreneur Dirk-Jan ter Horst, 37.

Today reported that The Land Transport Authority (LTA) has granted Drive lah approval to run a year-long trial here.

The trial started on Oct. 1, 2019.

The trial will see the number of cars listed on Drive lah capped at 500.

Drive lah has nearly 400 cars on its platform at the moment.

How it works?

Car owners on Drive lah get to decide the daily rental rates they wish to charge for the use of their cars.

This allows car owners to recoup the cost of owning a car in Singapore, or even make a side income.

Renters pay the daily rental price listed by car owners, plus a 20 percent fee levied by Drive lah to pay for insurance and operational costs.

Every booking made via Drive lah is insured on a per trip basis by Tokio Marine Insurance Group.

This additional insurance does not affect the car owner’s insurance and no-claim discount.

Bookings are currently made through the Drive lah website.

Renters then contact the car owner directly to arrange for pick up.

Users can search for cars within 100m of their location, as well as according to car models and price using filters.

For example, one car listed on the site at the moment costs S$50 to rent per day.

Renters will have to take pictures of the car and these images will have to be checked by the car owners before any booking begins and ends via the platform.

This is to prevent disputes in the case of scratches or dents.

Drive lah is planning to launch an app to facilitate bookings early next year.

Cheaper option

Drive lah promises rentals that are 30 to 40 percent cheaper than traditional rental companies.

The renter and car owner can communicate directly.

Currently, only daily rentals are available on Drive lah.

In the future, hourly rentals might be rolled out.

Platform under LTA trial

LTA told Today that it will review the trial after six months before deciding if it can continue operations.

LTA's current private car rental scheme allows private cars to be rented out only on weekends and public holidays.

But LTA has granted Drive lah permission to operate on all days, including weekdays.

Car owners and renters will first be screened by Drive lah’s team.

Car owners will have to electronically submit their National Registration Identity Card (NRIC) and car details.

Renters need to submit their NRIC and driver’s licence.

Drive lah will also hold a S$500 refundable security deposit on renters’ credit cards for bookings.

Car owners must ensure that their vehicles are properly insured for rental purposes.

Otherwise, they can face a fine of up to S$1,000, or three months’ jail, or both.

Those found guilty may also be disqualified from holding or obtaining a driving licence for 12 months.

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