This is part II of our "Why?" series of posts describing the impetus behind us building rentablegear.com. For more reading, check out our first post in this series.
#2 :: The equipment rental industry is not a competitive marketplace
A competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates. -- http://www.economicsonline.co.uk/
As we described in our first post in this series, rental equipment is hard to advertise and find. Because of this, rental equipment providers tend to be concentrated in few and far apart locations.
It is also difficult for providers to properly advertise their pricing information. This prevents consumers from being able to efficiently compare prices and locations.
The barrier to entry for someone that wants to rent their equipment is quite high, because they would not only have to find a cost-effective way to advertise their stuff, but they would also have to figure out a safe process to accept payment, vet renters, and manage transactions.
In summary -
1. It is difficult to find equipment
2. It is difficult to compare prices
3. There exists a costly barrier to entry for potential new lenders
Because of these reason, we don't view the current rental equipment industry as a competitive marketplace.
By listing on Rentable, our partners will benefit from our advertising efforts, provide clear pricing for their customers, accept online reservations and payments, use our insurance providers, and see reviews of potential renters to vet out the bad apples
Our users searching for rental equipment will have to opportunity to compare rental equipment options and make a choice based on what matters! Instead of walking into the only place they know that rents and paying whatever price they have listed, they can make their choice based on reviews, location, and price. This is a powerful thing.