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: On Spotify, users are unable to purchase individual songs or albums. Rather, they gain access to all songs on their platform for a flatrate, monthly fee. Access is granted based on the membership and not via a purchase, making music consumption more flexible for customers.
Learn more about Spotify →
How they do it: The Home Depot offers a range of vehicles and tools for rent at over 1,000 locations across the U.S. and Canada, providing value and convenience for both our Pro and DIY customers. Customers do not need to purchase specialized equipment, but can rent them for a specific project’s duration.
Learn more about The Home Depot →
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: Hilti’s ”Fleet Management” allows customers to rent its tools for a fixed monthly payment instead of needing to buy them. This contract includes the exchange of tools for the newest models as well as service and maitenance. The customer avoids a upfront investment and has an easy way to budget the tool costs going forward.
Learn more about Hilti →
How they do it: Car2Go users can use any of the companies cars for a fee per minute after registration to the service. The users can hence benefit from a car when in need of one free of the obligations and risks of actually buying and owning one. The company’s car can benefit from a much higher utilization than they would have with individual car owners.
Learn more about Car2Go →
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