Rent Instead Of Buy 40#
The customer does not buy a product, but instead rents it. This lowers the capital typically needed to gain access to the product. The company itself benefits from higher profits on each product, as it is paid for the duration of the rental period. Both parties benefit from higher efficiency in product utilization as time of non-usage, which unnecessarily binds capital, is reduced on each product.
Examples: Iconic Cases
How they do it: GE rents out certain of its products to customers. This allows its customers to balance peak production requirements, or need to troubleshoot unexpected situations. This gives customers flexibility and cost advantages.
Learn more about General Electric →
How they do it: Mobility’s value proposition is to have a model of shared car ownership. Hence, individual customers can avoid purchasing and maintaining a car but join the cooperative and thus get the right to use a car as they need it. As a lot of cars that are privately owned have significant downtime, the model of shared ownership increases the utilization of the individual car and thus lower the cost for everyone.
Learn more about Mobility Carsharing →
How they do it: With Porsche Passport, announced in 2018, customers do not purchase a car, but obtain access to a vehicle via the monthly subscription. It consists of an all-access subscription for $2,000 to $3,000 per month and includes a variety of car models (e.g. two-door and four-door models), from which the customers may flexibly choose a model of their liking.
Learn more about Porsche →
How they do it: Dropbox file hosting space is not owned by the customer, but he can utilize it to store his files online. This eliminates the need for a physical hard drive.
Learn more about Dropbox →
How they do it: Xerox was a pioneer in supplying photocopiers and printers to enterprises on a rental basis in the late 1950s. Instead of buying equipments with a high initial capital expenditures, firms could rely on flexible rental contracts.
Learn more about Xerox →
Below, the top industries for the pattern "Rent Instead Of Buy" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Top Industries
18% of firms using pattern
14% of firms using pattern
9% of firms using pattern
All Industries
Below, the pattern "Rent Instead Of Buy" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
6 pattern co-occurrences
3 pattern co-occurrences
3 pattern co-occurrences