The first thing that comes in the mind of an entrepreneur when thinking of the rental industry is Airbnb and Uber. Online rental businesses are expanding at a rapid pace making these, one of the most profitable models in the industry.
Early adopters believed the rental Industry to be a passing fad or might turn out to be a disruptive industry that will destroy the profits of all other industries.
Over the years, rental industry giants have been receiving generous capital from investors. One of the major factors resulting in the growth of the sharing economy is the target audience in the US, which according to NITA Data, is the wealthiest, full of well-educated people.
The rental industry is rapidly growing as a platform that provides temporary access to various assets. This industry which was valued at $19 billion in 2017 is expected to be $59.4 billion by 2022.
In the US, where the rental industry has been expanding at annual rates of between 5-7% for the past few years and is forecast to stay at the 5% level for the coming few years. The number of adults (in the U.S) using the increasingly popular renting economy is 73.7 million in 2019 and is likely to increase to 86.5 million by 2021.
While rental is an industry in itself, it also accommodates other industries under its umbrella. Many new business models have come up in this industry, one of which is “collaborative consumption”. Where users are consuming a particular commodity together, like in shared workspace. To simplify it further let me share an example with you.
While websites like rentmojo also exist where a user can go and rent items according to their needs. There are many businesses that have created a new niche within already existing industries. Transportation & logistics segment has successfully adopted the rental model with its already existing business models.
Below are some of the online niche-based ideas, which an entrepreneur can consider while opening a business in the rental industry:
Entrepreneurs with a keen interest in this industry must gain more knowledge before starting a new venture. To enable entrepreneurs make an informed decision, we would like to share information about the recent launch of online rental industry report.
The report contains information on different topics that are important for decision making. Here are some points from the report:
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