Online renting

From HandWiki
Short description: Practice of renting goods, property, or services via internet platforms

Online renting is the practice of renting goods, property, or services via internet platforms. It allows individuals and businesses to lend or borrow items for a fee using websites and mobile applications. The model has become part of the broader sharing economy and recommerce movement, offering an alternative to ownership.[1]

History and growth

The first online rental platforms appeared in the 1990s. In 1995, VRBO (Vacation Rentals by Owner) was launched as an early vacation home rental marketplace.[2] In 1997, Netflix began as a DVD rental-by-mail service using a subscription model.[3] In 2003, erento launched in Germany as a general rental portal, and in 2007 Zilok introduced peer-to-peer item rentals.[4]

The 2008 financial crisis encouraged greater use of rentals as a cost-saving measure.[5] In the same year, Airbnb was founded in San Francisco as a home-sharing platform.[6] Other sectors soon followed: fashion rental with Rent the Runway (2009),[7] furniture rental with Furlenco in India (2012), and home-sharing services in China such as Tujia (2011).[8]

Between 2011 and 2016, online rental startups attracted more than US$2.4 billion in funding.[9] In the 2020s, retailers such as IKEA and H&M began testing rental models.[10][11] A 2023 industry report valued the furniture rental market at US$52 billion in 2022, with projections of US$90 billion by 2030.[12]

Major industries

Housing and accommodations

Housing is one of the largest areas of online renting. Vacation rental platforms such as VRBO and Airbnb are widely used.[13][6] In China, Tujia has a significant market share.[8] Long-term rental sites such as Zillow, Rightmove, and 99Acres.com are commonly used in real estate.

Furniture and appliances

Furniture and appliance rentals expanded in the 2010s. Indian companies such as Furlenco (2012) and Rentomojo (2014) built subscription models, while U.S. startups like Feather and Fernish focused on urban markets. IKEA began testing subscription furniture in 2019.[10] Analysts expect continued market growth.[12]

Fashion and apparel

Fashion rental services provide temporary access to clothing and accessories. Rent the Runway (2009) was an early U.S. entrant.[7] In India, Flyrobe (2015) focused on ethnic wedding wear,[14] while China's YCloset (2015) received Alibaba investment but shut down in 2021.[15]

Entertainment and media

Online renting also shaped media. Netflix's DVD-by-mail subscription (1998) competed with Blockbuster before the shift to streaming.[16] Chegg began textbook rentals in 2007.[17] GameFly (2002) offered mail-based video game rentals. Other platforms such as Fat Llama provide rentals of equipment like cameras and projectors.[9]

Business models

  • Peer-to-peer (P2P): connects individual renters and lenders (e.g., Airbnb, Zilok).
  • Business-to-consumer (B2C): companies rent inventory directly to customers (e.g., Rent the Runway, Furlenco).
  • Subscription: customers pay monthly to access rotating goods (e.g., Nuuly, YCloset).
  • On-demand digital rentals: pay-per-use for media and games.

Role in e-commerce and social media

Rental platforms function like e-commerce websites, with product catalogs, user accounts, and integrated payments.[1] Marketplaces such as Amazon and Alibaba also include rental services.[15] Social media is used for promotion and community trust. For example, Instagram and TikTok are used by fashion rental companies,[1] and Facebook Marketplace supports local rental listings.

Impact and challenges

Online renting supports sustainability by extending product lifecycles.[1] It provides flexibility for consumers and recurring revenue for businesses. Challenges include regulatory issues in housing, logistics in apparel and appliances,[15] and fraud risks in peer-to-peer markets.[1]

See also

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 "Rental economy and sustainability". SAP. 2025. https://www.the-future-of-commerce.com/2025/05/29/rental-economy-surges/#:~:text=The%20rise%20of%20rental%20retail,product%20life%20and%20reduce%20waste. 
  2. ↑ "Short-term vacation rentals: A Colorado invention under the gun in Denver". CPR News. 2016. https://www.cpr.org/2016/05/16/short-term-vacation-rentals-a-colorado-invention-are-under-the-gun-in-denver. 
  3. ↑ "The Rise of Netflix and Fall of Blockbuster". Cato Institute. 2018. https://www.cato.org/commentary/lessons-rise-netflix-fall-blockbuster. 
  4. ↑ "Zilok wants to be the eBay of renting". The Guardian. 2008. https://www.theguardian.com/media/pda/2008/jun/23/elevatorpitchzilokwantsto. 
  5. ↑ "Hire". Merriam-Webster. https://www.merriam-webster.com/dictionary/hire. 
  6. ↑ 6.0 6.1 "How Airbnb took over the world". The Guardian. 2019. https://www.theguardian.com/technology/2019/may/05/airbnb-homelessness-renting-housing-accommodation-social-policy-cities-travel-leisure. 
  7. ↑ 7.0 7.1 "Rent the Runway: how it works". Business Insider. https://www.businessinsider.com/guides/style/rent-the-runway-2-swap-membership-review. 
  8. ↑ 8.0 8.1 "China's home-sharing market: Tujia vs Airbnb". EqualOcean. 2019. https://equalocean.com/analysis/201902091384#:~:text=Business%20Models%20at%20A%C2%A0Glance. 
  9. ↑ 9.0 9.1 "Rent at ease". Business Today. 2016. https://www.businesstoday.in/magazine/features/story/startup-offers-gadgets-games-and-products-on-rent-66213-2016-11-26. 
  10. ↑ 10.0 10.1 "IKEA launches rental pilots". SAP. 2019. https://www.the-future-of-commerce.com/2025/05/29/rental-economy-surges/#:~:text=Subscription%20furniture%20services%20like%20those,programs%20in%20several%20different%20markets. 
  11. ↑ "H&M tests clothing rental service". Hypebeast. 2019. https://hypebeast.com/2019/11/h-m-clothing-rental-service-details-sweden-test. 
  12. ↑ 12.0 12.1 "Furniture Rental Market Size, Share & Trends Analysis Report". Grand View Research. 2023. https://www.grandviewresearch.com/horizon/outlook/furniture-rental-market-size/global. 
  13. ↑ "Expedia retiring HomeAway rental brand, focus on Vrbo website". Fox Business. 2020. https://www.foxbusiness.com/lifestyle/expedia-retiring-homeaway-rental-brand-focus-on-vrbo-website. 
  14. ↑ "Flyrobe profile". Forbes India. 2019. https://www.forbesindia.com/article/30-under-30-2019/pranay-surana-tushar-saxena-fashion-on-rent/52453/1. 
  15. ↑ 15.0 15.1 15.2 "Alibaba invests in YCloset". China Daily. 2018. https://www.chinadaily.com.cn/a/201809/18/WS5ba06197a31033b4f4656a27.html. 
  16. ↑ "Netflix was founded 20 years ago today because Reed Hastings was late returning a video". Quartz. 2017. https://qz.com/1062888/netflix-was-founded-20-years-ago-today-because-reed-hastings-was-late-a-returning-video. 
  17. ↑ "Chegg moving toward a digital hub". SFGate. 2014. https://www.sfgate.com/business/article/Chegg-moving-toward-a-digital-hub-3606339.php. 



Retrieved from "https://handwiki.org/wiki/index.php?title=Online_renting&oldid=3849144"