Peer-to-peer renting refers to the process of an individual renting an owned good, service, or property to another individual. It is also referred to as Person-to-Person rental, P2P renting, Collaborative Consumption, the sharing economy and Product Service System. The term is mainly used to describe online enabled rental transactions between individuals.
Individuals have been renting from each other for decades, particularly in the real estate domain, however, with the Internet acting as a facilitator, there is a growing trend of websites that offer to facilitate peer-to-peer rental transactions. All of these sites are encouraging something academics call collaborative consumption — in other words, peer-to-peer sharing or renting. The trend is taking off partly as a result of the recession; renting something you don't need to use very often makes a lot more sense than buying it and letting it collect dust in your garage. There's a green aspect as well, since sharing helps cut down on overall use of resources. But one of collaborative consumption's most surprising benefits turns out to be social. In an era when families are scattered around the country and we may not know the people down the street from us, sharing things — even with strangers we've just met online — allows us to make meaningful connections.
The term Peer-to-peer renting is inspired from the computer networking term Peer-to-peer, which allows cumulative network bandwidth through direct and multiple connectivity between users. With the development of the Internet on one hand and of the Social Networks on the other hand, online tools and services tend to have more and more usability and impact in the actual world. Peer-to-peer lending, Peer to peer banking and Peer-to-peer renting are three examples of actual transactions between individuals, enabled and empowered by virtual services.
The fast development of this market is due to a combination of the following trends:
Peer-to-peer renting services and platforms are usually online marketplaces connecting individuals and enabling rental transactions between them. Peer-to-peer marketplaces are an evolution from the traditional Business-to-business marketplaces (also referred to as B2B), and Business-to-consumer marketplaces (also referred to as B2C). These latter B2B or B2C marketplaces have been developed, some remaining operational, since 2000. For instance, the European B2C marketplace erento has been operating since 2003 and is dedicated to the rental business, but does not allow peer-to-peer renting transactions.
Peer-to-peer renting services and platforms started appearing between 2000 and 2001, and were short-lived. Since 2006, various platforms have been launched in all parts of the world, and with today's economy, have seen rapid growth in popularity over the past several years.
99, formerly known as 99Taxis, is a transport company offering an app. The company focuses on transport via mobile app.Clothing swap
A clothing swap is a type of swapmeet wherein participants exchange their valued but no longer used clothing for clothing they will use. Clothing swaps are considered not only a good way to refill one's wardrobe, but also are considered an act of environmentalism. It is also used to get rid of and obtain specialist clothing. Cloth swap can be specialized - they can cater for example for clothes swaps only for high end brands.Collaborative consumption
Collaborative consumption encompasses the sharing economy. Collaborative consumption can be defined as the set of resource circulation systems, which enable consumers to both "obtain" and "provide", temporarily or permanently, valuable resources or services through direct interaction with other consumers or through a mediator. Collaborative consumption is not new; it has always existed (e.g. in the form of flea markets, swap meets, garage sales, car boot sales, and second-hand shops).ElsiePic
ElsiePic is a mobile application which is effectively the Uber by which people can help you take a photograph of you and your friends. It is co-founded by Tatiana Cooke.By using the application, one can search photographers in the nearby-area whom they can hire much like Uber.Flight sharing
Flight sharing is the sharing of the costs of non-commercial general aviation aircraft flights between a licensed pilot and their passengers.Freecycling
Freecycling, or free recycling, is the act of giving away usable unwanted items to others instead of disposing of them in landfills. This term is most often associated with online groups who run mailing lists which offer items to members at no cost.
For a period The Freecycle Network claimed they held a trademark on the word "Freecycle" and claimed the term freecycling to be a violation of their trademark rights. However they lost this claim – and rights to the "Freecycle" trademark – in United States federal court in November 2010. In her ruling Judge Callahan stated unequivocally that "Beal did not coin the word “freecycle” and TFN is not the first organization to promote freecycling" and that "even ... viewing the evidence in the light most favorable to TFN ... [they] engaged in naked licensing and consequently abandoned the trademarks."Hospitality Club
Hospitality Club operates a hospitality service and social networking service. Its website is a platform for members to arrange homestays, offer hospitality, join events, and meet other members. The platform is a gift economy; hosts are not allowed to charge for lodging.Mennonite Your Way
Mennonite Your Way (MYW) is a hospitality service that caters to Mennonites. Like all hospitality services, it is an example of collaborative consumption and sharing.Open admissions
Open admissions, or open enrollment, is a type of unselective and noncompetitive college admissions process in the United States in which the only criterion for entrance is a high school diploma or a certificate of attendance or General Educational Development (GED) certificate.Open university
An open university is a university with an open-door academic policy, with minimal or no entry requirements. Open universities may employ specific teaching methods, such as open supported learning or distance education. However, not all open universities focus on distance education, nor do distance-education universities necessarily have open admission policies.Pasporta Servo
The Pasporta Servo (English: Passport Service) is a hospitality service for Esperanto speakers. It is maintained by the World Esperanto Youth Organization (TEJO), which publishes an annual online and print directory of people within the Esperanto culture who are willing to host other Esperanto speakers in their residences for free for up to 3 nights. The platform is a gift economy; hosts are not allowed to charge for lodging.
Free lodging via Pasporta Servo is one of the benefits of learning Esperanto. Guests using the service are encouraged to speak only Esperanto with their hosts.Peer-to-peer banking
Peer-to-peer banking is a term used in the blockchain banking industry and designates an act of transfer of value without the need of an intermediary such as a bank.
Peer-to-peer banking is an online system that allows individual members to complete financial transactions with one another by using an auction style process that lets members offer loans for a specific amount and at a specific rate.Peer-to-peer carsharing
Peer-to-peer carsharing (also known as person-to-person carsharing and peer-to-peer car rental) is the process whereby existing car owners make their vehicles available for others to rent for short periods of time.
Peer-to-peer carsharing is a form of person-to-person lending or collaborative consumption, as part of the sharing economy. The business model is closely aligned with traditional car clubs such as Streetcar or Zipcar, but replaces a typical fleet with a ‘virtual’ fleet made up of vehicles from participating owners. With peer-to-peer carsharing, participating car owners are able to charge a fee to rent out their vehicles when they are not using them. Participating renters can access nearby and affordable vehicles and pay only for the time they need to use them.
Businesses within this sector screen participants (both owners and renters) and offer a technical platform, usually in the form of a website and mobile app, that brings these parties together, manages rental bookings and collects payment. Businesses take between 25% and 40% of the total income, which covers borrower/renter insurance, operating expenses, and roadside assistance.
Although many personal auto insurers in the U.S. exclude coverage for commercial use of insured vehicles either through a livery and public transportation exclusion or a specific "personal vehicle sharing program" exclusion, several states in the U.S. have passed legislation allowing individuals to share their cars without risk of losing their personal car insurance. These include California, Oregon, Washington, and Maryland.As with person-to-person lending, the Internet and the adoption of location-based services have contributed to the growth of peer-to-peer carsharing.Peer-to-peer property rental
Peer-to-peer property rental (also known as person-to-person home rental) is the process whereby an existing house owner makes their house or an empty room available for others to rent for short periods of time as an alternative form of accommodation.
Peer-to-peer property rental is a form of peer-to-peer renting, an aspect of the sharing economy. The business model is very similar to traditional vacation rental. With peer-to-peer property rental, participating house owners are able to make money by renting out the house where they live while they are away or an empty room they might have available.Businesses within this sector typically apply some form of screening of participants (both owners and renters) and a technical solution, usually in the form of a website, that brings these parties together, manages rental bookings and collects payment. Increasingly, an automated form of insurance and breakdown coverage will be applied to rentals that take place through the service in order to protect the property owner.Social peer-to-peer processes
Social peer-to-peer processes are interactions with a peer-to-peer dynamic. These peers can be humans or computers. Peer-to-peer (P2P) is a term that originated from the popular concept of the P2P distributed computer application architecture which partitions tasks or workloads between peers. This application structure was popularized by file sharing systems like Napster, the first of its kind in the late 1990s.
The concept has inspired new structures and philosophies in many areas of human interaction. P2P human dynamic affords a critical look at current authoritarian and centralized social structures. Peer-to-peer is also a political and social program for those who believe that in many cases, peer-to-peer modes are a preferable option.Vinted
Vinted is an online marketplace and community that allows its users to sell, buy, and swap secondhand clothing items and accessories.Wingly (company)
Wingly is a company which runs a flightsharing platform. Using the platform, recreational pilots may offer passengers seats on their flights from aerodromes by charging each passenger a share of the operational expenses of the flight. Often, the price of a shared flight may be less than on a comparable commercial flight service.The service has been compared to Uber and Airbnb. Flights are insured by Allianz.Yourdrive
Yourdrive is a New Zealand peer-to-peer carsharing company. It facilitates a system in which individuals may rent their privately owned vehicles on an hourly, daily or weekly basis to other registered users of the service. Owners set their rental prices and earn a 60 percent commission from the rental revenue. It currently operates in throughout New Zealand with vehicles in Auckland, Hamilton, Palmerston North, Wellington, Christchurch, Dunedin.
New Zealand rental car firm JUCY purchased 50% of the company in 2016Peer-to-peer carsharing is an example of collaborative consumption, where assets and skills are shared or traded between neighbours for sustainability and economic benefit. Although car sharing is relatively new in New Zealand it is an area that is being encouraged due to the environmental and economic benefits. Auckland Transport is promoting a scheme that would drastically increase the number of car sharing vehicles.