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Everything can be rented

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Vince P

New Contributor
Feb 14, 2019
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Manila, Philippines
I hope you guys can help by giving feedback in my idea. Basically what I envisioned is to make everything for rent. what I can provide is the logistics and the payment side.
Infrastructure:
  1. Platform for website and app that anyone can post their stuff. They make a profile and they will have to upload govt issued ID.
  2. logistics: People on motorbikes with a large container at the back.
  3. In-house payment system.
  4. Secure rental system because of shared information. (Profile and govt id needed in the online platform)
Service to the users:
  1. Post their stuff in the online platform and add the rental rate of the item.
  2. We will handle the payment system either by cash or credit that will go straight to the users account.
Target market:
  1. People who work from home
  2. Homemakers (stay-at-home Moms or dads)
  3. Basically anyone who is at home who has a lot of stuff lying around.
Scenario:
Let's say you have a gopro that you just use 3x a year. Why not make it something of value. People will earn on the side.
  1. User uploads the item in the app/website
  2. another user is interested in renting it out.
  3. We pick it up from the lender. Deliver it to the borrower. After the rental period expires, we then pick it up from the borrower and then return it to the lender.
Business model: We charge a fee when we pick it.
Current status of the project:
Still building up my team but already have 5 VCs in the pipeline.
Talked to web designers and developers.
But I am thinking of just launching this then approach the VCs when we want to expand.
Target launch: late this year (2019). I hope.
Location: Manila, Philippines.
 

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NateKruse

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Interesting idea. As a consumer that sounds like an amazing service. However, I suspect your margins would be pretty low. How much would someone be willing to pay to use a GoPro or something for the weekend? $15 per day? Most of that would probably go to the owner, plus you are planning on having drivers do the delivery both ways, so your overhead will be pretty high.

I am someone that has way too much crap that never gets used. I love the idea of only renting when you need it, but it needs to be affordable enough to stop me from just buying the thing, which I think will limit what you could charge. The convenience could be worth a premium though. Best of luck if you decide to pursue it!
 
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Vince P

Vince P

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Feb 14, 2019
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Manila, Philippines
Interesting idea. As a consumer that sounds like an amazing service. However, I suspect your margins would be pretty low. How much would someone be willing to pay to use a GoPro or something for the weekend? $15 per day? Most of that would probably go to the owner, plus you are planning on having drivers do the delivery both ways, so your overhead will be pretty high.

I am someone that has way too much crap that never gets used. I love the idea of only renting when you need it, but it needs to be affordable enough to stop me from just buying the thing, which I think will limit what you could charge. The convenience could be worth a premium though. Best of luck if you decide to pursue it!

Thank you, Nate.

Labor is considerably cheaper here in the Philippines as compared to the US.

I was thinking of having the delivery and pick up fee fixed to a certain amount.

The riders can be on-call and provide their own motorcycle like "Grab Delivery" here. Basically riders can just be on standby with their smartphones and if any orders come up they will be activated. But the overhead cost and the insurance for the employees is what i think will be expensive.

Traffic is one of the major problems here in Manila. People no longer want to go outside let alone meet up will a seller or even go to the mall. I'll take advantage of that through this service.

But everything is pretty much based on speculation. I will know once this enters the market.
 

ShamanKing

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Let's say I rent my GoPro. Are you going to have your own IT team to inspect my item before sending it out and returning it?

Also Lets say you do, and after I get it back from the customer who rented it, my GoPro stopped working. Who's going to be responsible for replacing it. Will the company just issue me a new one or will you take a certain deposit amount from the customer beforehand. (and what about renter's insurance as a choice)

I have a friend who has past experience with a similar company.
 
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Vince P

Vince P

New Contributor
Feb 14, 2019
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Manila, Philippines
Let's say I rent my GoPro. Are you going to have your own IT team to inspect my item before sending it out and returning it?

Also Lets say you do, and after I get it back from the customer who rented it, my GoPro stopped working. Who's going to be responsible for replacing it. Will the company just issue me a new one or will you take a certain deposit amount from the customer beforehand. (and what about renter's insurance as a choice)

I have a friend who has past experience with a similar company.


Hello Neng Her,

I was thinking of the same model as AirBnb. The liability of the item is between the lender and the borrower.

The company will only be liable during the item's pick up and delivery. We have them check that the item is in good order when it was picked up and delivered. that is also why some sort of review system will be applied in the platform to see if the lender or borrower actually has a good standing when they handle the item.

That is also why the government issued ID is a requirement when they make a profile as their home address is listed there.

Please let me know if you think this is feasible!

Like Airbnb, they are not liable if something gets damaged in the property.

I am also exploring if some sort of deposit fee can be applied and how to make everything user-friendly.

Let me know your thoughts please! and can you also please name the company you mentioned that is similar. I will look them up!
 

njord

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Why not make it an app/platforum just like uber or airbnb instead of a actuel dilivery service? It would save you alot of overhead and hussel.
 
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Vince P

Vince P

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Feb 14, 2019
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Manila, Philippines
Why not make it an app/platforum just like uber or airbnb instead of a actuel dilivery service? It would save you alot of overhead and hussel.
Hi njord!

Yes, that is part of it. But that is not the business. There are already existing platforms here that people post items for sale and for rent. But no other company that I know of provides a service that picks up the item from the lender, deliver it to the borrower, then pick it up again to deliver it back to the lender.

There area a lot of couriers here that can handle the delivery part but none that handles small items for rent in a secure way. People borrow stuff but they will not lend it to people they do not know. I might be able to provide that through shared information in the platform even if it just shows their names, home addresses, and ratings/reviews.

I am banking on the traffic issue in my country as well as people who buy lots of stuff that they do not regularly use.

Thank you and please give me more feedback!
 

Xeon

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Interesting idea but I agree with the other poster regarding margins.
I feel you really need to work out the margins and how sustainable is this in the long run.

Also, since you're starting out, I assume you would need to put in quite a lot initially to jump start the platform and gain the initial traction, because i) no one would have know about you ii) it needs to be adopted on a big scale to make your manpower overheads worth it and iii) you need to get users to trust a platform they've never heard of (especially if it requires them to give you their national ID no.)
 
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Vince P

Vince P

New Contributor
Feb 14, 2019
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Manila, Philippines
Interesting idea but I agree with the other poster regarding margins.
I feel you really need to work out the margins and how sustainable is this in the long run.

Also, since you're starting out, I assume you would need to put in quite a lot initially to jump start the platform and gain the initial traction, because i) no one would have know about you ii) it needs to be adopted on a big scale to make your manpower overheads worth it and iii) you need to get users to trust a platform they've never heard of (especially if it requires them to give you their national ID no.)

Thanks, Xeon!

I agree. I need to be calm and think this through on how to execute this. I will start small by targeting a minor city within Metro Manila. A city wherein most of it consists of homes not commercial properties.

I think this is ideal since people who live in houses tend to horde more stuff and also cheaper to register it in a smaller city when it comes to business permits and taxes.

I will use that time for further experimentation and growth.
 

anotherjmc

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Apr 29, 2019
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Hi Vince!

Potential competitor/partner here :D
I have been thinking about the same idea (rent everything) lately!

But from your elaborations I see that you plan your source of revenue to be the delivery fee, which as itself is not a problem, but it sounds like you see the short distance small item delivery as the main bottle neck and a strong need in your market.

I would therefore recommend running these 2 businesses as separate entities to be honest. The delivery business has huge potential much beyond deliver rental items. Check out this example in China, I have been using it regularly while I was living in Beijing: https://www.crunchbase.com/organization/shansong#section-overview
Similarly, the rental service has huge potential beyond smaller items (e.g. vehicles, real estate). So keeping these businesses separate would benefit both from a longterm growth perspective.

Would be great to connect! I actually registered on the forum just because to reply :)
 

NateKruse

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Why not make it an app/platforum just like uber or airbnb instead of a actuel dilivery service? It would save you alot of overhead and hussel.
Hi njord!

Yes, that is part of it. But that is not the business. There are already existing platforms here that people post items for sale and for rent. But no other company that I know of provides a service that picks up the item from the lender, deliver it to the borrower, then pick it up again to deliver it back to the lender.

There area a lot of couriers here that can handle the delivery part but none that handles small items for rent in a secure way. People borrow stuff but they will not lend it to people they do not know. I might be able to provide that through shared information in the platform even if it just shows their names, home addresses, and ratings/reviews.

I am banking on the traffic issue in my country as well as people who buy lots of stuff that they do not regularly use.

Thank you and please give me more feedback!
You could be the UberEats of small rentals. If you could work with the existing platforms renting and selling items, you could create an app that allows for the delivery without the overhead of delivery employees. The biggest reason I don't sell stuff on Craigslist or Facebook Marketplace is because I don't want strangers coming to my house or have to be inconvenienced by meeting a customer at another location. Once you have the delivery up and running you could pivot to your own rental/sharing service.
 

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Twiizlar

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https://skipti.com/

They haven't launched yet but looks like what you're talking about.

In my opinion I think these businesses will fail as the margin is too low, the logistics are scary and insurance will be crazy.
 
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Vince P

Vince P

New Contributor
Feb 14, 2019
14
6
14
Manila, Philippines
Hi Vince!

Potential competitor/partner here :D
I have been thinking about the same idea (rent everything) lately!

But from your elaborations I see that you plan your source of revenue to be the delivery fee, which as itself is not a problem, but it sounds like you see the short distance small item delivery as the main bottle neck and a strong need in your market.

I would therefore recommend running these 2 businesses as separate entities to be honest. The delivery business has huge potential much beyond deliver rental items. Check out this example in China, I have been using it regularly while I was living in Beijing: https://www.crunchbase.com/organization/shansong#section-overview
Similarly, the rental service has huge potential beyond smaller items (e.g. vehicles, real estate). So keeping these businesses separate would benefit both from a longterm growth perspective.

Would be great to connect! I actually registered on the forum just because to reply :)

That's awesome, anotherjmc!

sent you a message!
 
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Vince P

Vince P

New Contributor
Feb 14, 2019
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Manila, Philippines
The inconvenience heavily outweighs the price of just buying one.

For those reasons I’m out.

Might be true. I just believe that there is a service gap when it comes to renting items and I think this model can actually add value to customers as well as add value to items that are just collecting dust.

I will keep exploring/ experimenting. Might get some traction and see if the market will validate whether the idea is right or wrong.
 
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Vince P

Vince P

New Contributor
Feb 14, 2019
14
6
14
Manila, Philippines
https://skipti.com/

They haven't launched yet but looks like what you're talking about.

In my opinion I think these businesses will fail as the margin is too low, the logistics are scary and insurance will be crazy.

Thank you! Yes, very similar.

I think i can take advantage of the geographical difference and the purchasing power in my country.

People there might find it easier to purchase item X while item X here might be too expensive for people living here therefore they might just opt borrowing it.

* Difference in purchasing power
* Cheaper Labor here

Also in terms of population:

Metro Manila: 13.6 million in 619km2 = Roughly 22,000 per km2
Boston: 685,000 in 232km2 = Roughly 3,000 per km2

Maybe by just exploiting the population alone I can already "impact millions"
 
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Twiizlar

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Thank you! Yes, very similar.

I think i can take advantage of the geographical difference and the purchasing power in my country.

People there might find it easier to purchase item X while item X here might be too expensive for people living here therefore they might just opt borrowing it.

* Difference in purchasing power
* Cheaper Labor here

Also in terms of population:

Metro Manila: 13.6 million in 619km2 = Roughly 22,000 per km2
Boston: 685,000 in 232km2 = Roughly 3,000 per km2

Maybe by just exploiting the population alone I can already "impact millions"
You can always wait for them to launch in July and see if there is proof of concept. Then copy it for your country.
 
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Vince P

Vince P

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Feb 14, 2019
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Manila, Philippines
Don't people just buy items and return them within the 30-90days instead of renting?
You mean like stores that purchase used appliances?
We those however, people are more into purchasing then holding on to it in and repair it until it is no longer useful then place them in their garage or backyard.
 

TheCj

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I mean stores that sell new items like Walmart, Home Depot, Costco etc..

They were talking about Costco here on the radio there business model is based on the membership fee, the returns apparently go back to the manufacturers to recoup the loss.. They have a very lenient return policy. People calling in talking about returning patio furniture after the summer season is done etc.. Need a tool for the weekend buy from Home Depot and return it etc.. Remember hearing same with clothing for prom or graduations etc..
 

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ShamanKing

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I mean stores that sell new items like Walmart, Home Depot, Costco etc..

They were talking about Costco here on the radio there business model is based on the membership fee, the returns apparently go back to the manufacturers to recoup the loss.. They have a very lenient return policy. People calling in talking about returning patio furniture after the summer season is done etc.. Need a tool for the weekend buy from Home Depot and return it etc.. Remember hearing same with clothing for prom or graduations etc..

Unfortunately there are people like that who will buy tools, use it, and return it.
 
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Vince P

Vince P

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Feb 14, 2019
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Manila, Philippines
I mean stores that sell new items like Walmart, Home Depot, Costco etc..

They were talking about Costco here on the radio there business model is based on the membership fee, the returns apparently go back to the manufacturers to recoup the loss.. They have a very lenient return policy. People calling in talking about returning patio furniture after the summer season is done etc.. Need a tool for the weekend buy from Home Depot and return it etc.. Remember hearing same with clothing for prom or graduations etc..

WOW. I don't think we do that here but that is definitely be a threat.
 

Valhalla

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I really like the idea for your market. I think most people here saying why not just go buy one don't understand that you've identified an existing issue in the Phillipines. That being said I can't shake the feeling of low margins either. What would the numbers (revenue, variable costs etc) look like for an individual transaction?
 

Plasma

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I recommend checking out FatLlama - Buy. Sell. Rent.

I've used them as a consumer AND listed some of my stuff on there. This is definitely a business model that can work, and has gotten interest from VC's (FatLlama went through YCombinator and has raised $13M).

EDIT: This could be a source of some ideas for you. Location is obviously very important. Own your local market and you can win.
 

Howlitzer

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Yeah as Plasma said it sounds like FatLlama which I have also used myself to rent things I needed as well as rent out things others needed. The biggest issue I am worried about when I rent out an item is insurance and if/how its covered if something happens to it.
 
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Vince P

Vince P

New Contributor
Feb 14, 2019
14
6
14
Manila, Philippines
Here a few site you get maybe more ideas for your project:
www.kwipped.com
www.grover.com
www.erento.com
www.unitedrentals.com
Thank you!

Was really thinking of having a business-to-business model once I expand. Just an example. A company has a generator lying around, I can provide the service of connecting that company to another business wherein they need a generator.

Maybe even expand to car and equipment rentals. I can disrupt the rental industry by providing a much easier way for people to rent.
 
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Vince P

Vince P

New Contributor
Feb 14, 2019
14
6
14
Manila, Philippines
Yeah as Plasma said it sounds like FatLlama which I have also used myself to rent things I needed as well as rent out things others needed. The biggest issue I am worried about when I rent out an item is insurance and if/how its covered if something happens to it.
True, that is the biggest possible threat that people say whenever I would pitch in my idea.

"What if my item gets damaged?"
"What if the returned item is not mine? What if the returned item is actually fake, mine gets stolen?"

Honestly, I have no clear answer it right now. The option I can think of is maybe have a collateral or insurance system in place?

What I want to achieve is that the company will only be liable to the item once it is on transit. If something happens to the item the lender and the borrow will have to sort it out and bombard themselves a bad review.

I understand that this system sucks however what I can think of is how Airbnb do it. If a property gets damaged the property owner would chase the occupant and not Airbnb.
 

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