Love the idea and think this could be a huge market. Just wondering if you guys help with theft, damage, or insurance too? What are the best practices for this?
Not to be harsh, but have you actually run a rental store yourself before? Because id management, theft, and damage are the main issues that people face when doing so. If you haven't considered it, then I suggest you start researching immediately, because your customers WILL come back and say their tool was stolen and they need help or will request compensation.
I haven’t, it’s interesting to hear feedback from those who haven’t. Whenever I rent a car, I pay in advance online, and then pay a security deposit/they put a hold on my card in the store. Presumably a feature like that would address your concerns here?
Table stakes but likely won’t be enough. If it’s a stolen card, the owner will charge back and you can’t keep the deposit. If you get too many chargebacks your payment provider will drop you. If you charge someone for damage they did that they don’t want to own up to, they will issue a chargeback. You will likely win the dispute if you can point to ToS violations but it’s a huge pain and ties up money for a few weeks.
In your example, the car rental company is doing something on the backend to determine your trustworthiness before they give you the car—you should consider a similar approach.
Depends on how good Radar is these days. I’d recommend some sort of identity verification service for new accounts. Not a full background check but a few additional hurdles weed out many unsophisticated fraud attempts. Anecdotally, a friend told me that calling new signups and manually verifying them works well. At this stage this would have the bonus for you of learning more about the folks using your system.