New P2P Rental Platform – Request for Opinion

Ljosh-rentables on 12/06/2024 - 13:11
Last edited 12/06/2024 - 14:41

Hey all, long time ozbargain lurker here.

I’m working on a project called Rentables that is a P2P rental marketplace for everyday items. The idea is to create a platform where people can list the things they own, letting others can rent them for short periods. This could include anything from hobby supplies, power tools and camping gear to electronics and party supplies.

The goal is to make it easier for people to access the things they need without the commitment of buying (which is often a struggle, especially in todays economic climate), while also allowing owners to earn some extra cash from the things they already have. I'm hoping to build a strong community where trust and reliability are key, with features like user reviews, secure payments, security deposits, and (one day) insurance options.

I know the concept of renting isn't new – Tool libraries, Kennards, Bunnings Hire etc. all exists – What I'm aiming for is a democratised platform that empowers and enables the community, giving them the freedom and accessibility to express themselves, or meet their needs, without the added (and extended) economic pressures.

I’d love to hear your thoughts on this concept. It's in the beginning stages, and I'm open to any-and-all feedback!

  • What do you think are the potential benefits or drawbacks?
  • Are there any features or considerations you believe would be crucial for making this platform successful?
  • What would make you hesitant to use such a service?
  • What would make you want to use such a service?

Thanks all, looking forward to hearing your perspectives.

Poll Options expired

  • 3
    I would use this
  • 7
    I might use this
  • 32
    I wouldn't use this
General Discussion

Comments

  • Duckie2hh on 12/06/2024 - 13:14
    +7

    Insurance and damage from use issues could be a problem. Also how would your business make money? Take a 1% cut on a $10 rental of a lawnmower?

    • josh-rentables on 12/06/2024 - 13:23

      Insurance and damage from use issues could be a problem

      For sure – Definitely something I've considered. In the alpha version I have now, there's a scaling security deposit to protect against outright damage (something coming back wildly broken and no longer usable). This is a vector of 14x the day rate up to a value of $200. I've set it at this because anything above at this stage would cause any revenue to be eaten up by transaction fees.

      As for on-going maintenance and ware-and-tear, that would need to be considered as part of the users pricing (which is something I could push them towards considering at the time of pricing).

      Also how would your business make money?
      FWIW I've been focused on the concept and utility of the service above the monetisation aspect, but definitely worth thinking about. There's likely a few ways to tackle this, but the way I'm approaching it at the moment is to add a platform fee on top. So the owner might list their item for $10 a day, and the renter might end up paying something like $12.50 to accomodate for platform fees. This is a simplified example, but you get the idea.

  • SBOB on 12/06/2024 - 13:19
    +3

    1)
    Verified Identity - Before anyone can start their Rentables journey, we require a thorough verification of their identity. Users must present valid documentation, like a driver's license or passport, to ensure transparency and authenticity in every transaction.

    How are you achieving this?

    2)
    How will you handle disputes like broken tools, mis-represented listings, non-returned items, potential insurance issues due to injury that could arise due to incorrect operating equipment ?

    3)
    What portion of a rental fee are you aiming to take as the provider of the service?

    • Hybroid on 12/06/2024 - 13:33
      +1

      2) is pretty much why this doesn’t work; and no one else has managed it at large scale (some tried in UK years ago on local area level).

      Humans cannot be trusted to self-regulate without rigorous idiot-proof processes in place. Even then.

    • josh-rentables on 12/06/2024 - 14:00

      Good questions - Answers below:

      Verified Identity - Before anyone can start their Rentables journey, we require a thorough verification of their identity. Users must present valid documentation, like a driver's license or passport, to ensure transparency and authenticity in every transaction. How are you achieving this?

      I'm leveraging Stripes built in identity module for this. There's alternatives out there that I've explored (Sumsub, Jumio etc.) but as I'm using Stripe to handle the CC payments, and it being the most affordable option it seemed like the most logical choice.

      How will you handle disputes like broken tools, mis-represented listings, non-returned items, potential insurance issues due to injury that could arise due to incorrect operating equipment?

      Good question – A lot of this revolves around trust, which is something I've toiled with a lot. As a result of that, I've tried to implement a range of different, yet complimentary approached to tackle these.

      1. Broken tools
        Each rental will have a security deposit that'll aim to cover accidental damage.

      2. Misrepresented Listings
        As a first port of call, built into the platform is a reputation system which aims to disincentivise owners from creating misleading listings (think similar to the Uber star rating that's mandatory after every ride). This goes both ways, so Renters will also have ratings to ensure there's an even playing field of accountability.

      As well as this, I've built the booking mechanism as a "two-key system" where both the Owner and the Renter need to agree and accept at a few key checkpoints to make sure everything is above-board, and it's encouraged to perform a proper inspection before picking up and receiving an item back – This isn't something I've built yet, but I could work it into the system where there's a few steps to verify the condition it's picked-up/returned in.

      In the case of an official dispute, this information would then be reviewed and in the instance of wrongdoing been found, then there would be refunds issued, accounts penalised or blacklisted, and in rare cases authorities contacted. I'm also exploring options, again similar to Uber, where an account can be charged after the fact in the case of disputes; Same as the Cleaning Fee if you were to spew in the Uber etc.

      1. Potential insurance issues due to injury
        This is the one thing I don't have a great solve for – At least in the beginning, the platform would need to be "use at own risk" until I can come up with a better solution.

      One thing I do encourage with listings is to provide a guide for safe usage.

      What portion of a rental fee are you aiming to take as the provider of the service?
      I haven't locked in the pricing yet – I'm open to what people feel is fair. I obviously need to cover operating costs, so there'll be flat fees involved to cover that but overall I'm trying to focus on the value the platform can provide first, before I try and monetise the crap out of it with fees.

      The approach I'm leaning towards is tacking a fee on-top that the Renter pays ($10 a day becomes $12.50), or taking a % off of the final fee ($10 a day for 5 days is $50, 3% fee). As I said though, very open to what people feel is fair.

      • Moderatorscrimshaw on 12/06/2024 - 15:03

        Hi Josh,

        We don't allow the usage of ghost accounts. Please login to your original 2019 account to continue discussions. Thanks

        Terms: Multiple accounts held by the same individual or entity are subject to immediate termination unless expressly authorised by OzBargain.

  • jugsy on 12/06/2024 - 13:23
    +1

    How are you making your money? What insurance/coverage do you provide, both ways? What's the advantage of this over a gumtree or facebook post?

  • askbargain on 12/06/2024 - 13:30

    why are you p2p?

  • Jimothy Wongingtons on 12/06/2024 - 13:33
    +2

    not one to poo poo the idea…but 1) there is already some services as you correctly pointed out , with fully setup procedures/apps/insurances…

    and 2) when you said 'build a strong community where trust and reliability are key' - how do you plan to do so? What makes me want to sign up , and use the service? Better pricing? Hard to find items?

    My friend was telling me about kind of co-op setups where people can bring in items and have people skilled in the areas fix them.
    Eg minor appliances fix (technician or sparky). fix a hole in trousers (seamstress) etc
    Maybe do something like this but hard to always keep a regular amount of staff on hand…and how much could you really charge to make it all worth?

  • Cheaplikethebird on 12/06/2024 - 13:41
    +1

    Someone has already posted this exact idea here maybe about a year ago from memory. It's not really a unique idea, the last ten years has been a race of everyone trying to capitalise on unused assets via p2p apps. It's a brain fart pretty much everyone's had at this point.

    I think the main hitch is - if I loan out my lawnmower and it breaks, not due to misuse but just through normal wear and tear (so no fault on renter) who pays?

    • bobbified on 12/06/2024 - 17:24

      I also remember someone posted this idea here before..

      if I loan out my lawnmower and it breaks, not due to misuse but just through normal wear and tear (so no fault on renter) who pays?

      and this was one of the questions!

  • pegaxs on 12/06/2024 - 13:43
    +4

    Great… can’t wait for all the posts on here about people having their shit stolen on some random P2P tool sharing website…

    “Rented out my Makita whipper snipper and 8 batteries and now the guy won’t return my calls… what rights do I have to get my stuff back…”

  • mskeggs on 12/06/2024 - 13:54
    +1

    Toolo was a tool library up here. It folded as they couldn't find enough paying members at $2 per week.
    Gonna be a hard slog for you, I think.

    FWIW, I don't think they had issues with damage or theft.

  • Doyen on 12/06/2024 - 14:04

    As much as i don't want to cause waste I have found buying Ozito at Bunnings is cheaper than Kennards hire. If the Ozito last more the one project you are winning.

    I like your idea but seeing it as viable with theft, damage, inventory management looks to be hard work.

    Something like couchsurfing but australia oriented would be more viable at the moment.

  • netjock on 12/06/2024 - 14:16

    Instead of asking all of us to build out your business model maybe you should actually do the work?

    Plenty of ideas but execution is the problem. Through all aspects of customer journey and look into costs and regulatory compliance. I'd suggest before long you'll find out why it isn't so easy (you might find someone who have tried and failed, track them down and ask them questions) but you might be able to pull it off with your unique abilities.

    I've done this a few times over and I've come to the conclusion there is an aspect of timing (whether people are ready to use your services), tech maturity, regulatory (certain industries are heavily regulated) and whether you got a market. Number one problem is what is going to make someone go to their shed and make an inventory of their tools, put it onto the platform and deal with having to hand it over / receive it back and making like $20. Imagine handing over a new Ozito battery and getting one back that is knackered.

  • payless69 on 12/06/2024 - 14:20
    -3

    Hire some kids to get the $5 Westpac reward.
    Hire out bored housewives.
    Rent a hubby is already taken.
    Rent healthy people to make more Medicare claims.
    Rent companions to get the new customers benefits..

    payless69 on 12/06/2024 - 14:20 (Collapsed - Offtopic. Show)
  • pharkurnell on 12/06/2024 - 14:43
    +1

    Great idea.. Wont work.

  • freefall101 on 12/06/2024 - 15:36
    +1

    I think you're a bit late on the "everyone else takes the risk and I'll take a cut as the middleman" bandwagon.

    The idea is great, but the financial and legal obligations are substantially more than you'll be able to manage.

  • bobbified on 12/06/2024 - 17:27
    +1

    I can see that public liability would be a huge issue with things like power tools. Especially where there's old or worn equipment that gets rented out that injures or kills someone.

    Places like Kennards, Bunnings or wherever would check their tools to a particular standard when they're getting loaned out or receiving it back.

  • leiiv on 12/06/2024 - 21:03

    The only way this would attract a large number of users, is by having a large number of lenders. But how would you attract them in the first place?
    And why the scale is important? Because it has to be quicker and easier than the alternatives such as borrowing the tools from your neighbours or mates.
    In addition to that, it also has to be cheaper than the Tool libraries, Kennards, Bunnings Hire etc.

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