Nalsie Ventures

Next month will make 3 years operating our Turo business. There have been numerous challenges but we’ve managed to stay optimistic throughout. Now, though, it feels like things have fundamentally changed and I’m not sure about the future of this business.

Since moving our primary pick-up location to Manhattan last Fall due to the lack of booking requests in our home area in the Hudson Valley, there have been several logistical challenges and added expenses to deal with.

Logistics

First, we’re about an hour’s drive outside the city, so getting back and forth multiple times per week is extremely difficult. I drive and/or take public transportation which can lead to delays and some very late nights.

Parking

Parking is another nightmare. Leaving the cars parked in Manhattan means dealing with alternate side street parking. For those not familiar, cars have to be moved 4 days per week to allow for street cleaning. This makes the already daunting task even harder by limiting which side of the street I can leave the cars. Multiply this by up to 6 cars and you understand the chaos this causes.

Added Expenses

Next is the added expenses that come with operating so far from home. Tolls, gas, public transportation, car washes and Ubers add up quickly. It doesn’t help that NYC initiated congestion pricing in January, which adds another $9 for driving below 60th st. This all adds up to about $25 just to drive into the city! My already thin profit margin has nearly disappeared.

What’s next?

We recently sold one of our cars to help ease the burden and raise some capital. There are no current plans to replace that car, even with the busy summer season coming. It’s too early to say this is the beginning of the end for our Turo business, but all these headwinds (and we haven’t even talked about our increased insurance costs!) are making the future cloudier than ever. I could see us continuing to reduce the fleet or moving the operation to a new location. Either way, something has to change because the current course is unsustainable.