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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: 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: 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: 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: 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: 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 →
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 13 firms using this pattern.
Top Industries
Transportation
21% of firms using pattern
21% of firms using pattern
Consumer Goods
14% of firms using pattern
14% of firms using pattern
Information Technology
12% of firms using pattern
12% 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
Affiliation
1 pattern co-occurrences
1 pattern co-occurrences
Pay Per Use
1 pattern co-occurrences
1 pattern co-occurrences
Subscription
1 pattern co-occurrences
1 pattern co-occurrences