Recent survey has reported that purchase oriented marketplaces are most successful. Here the graph below will be categorizing majority of their peer-to peer marketplaces and dividing them through transaction type purchase versus rental.
There are two fundamentals problems with their rental marketplaces. Here incentivizing supply in their marketplace basically important to receive liquidity. In majority of their buying category, the products supplier and services can make their living out of their activities in the marketplaces.
Subsequently, suppliers will be caring about the presence of their marketplace and will be dependent on it. The only companies where people are not making their living on these are Opendoor or Beepi and in these cases sellers are selling goods which present their high percentage of their net-worth houses and cars.
The ratio between demand and supply for their rental marketplace and are typically one to others. Here the house owners can rent it to be multiple consumers. The relationships between supply and demand and are much higher than their mentioned details.
Renting is cheaper than buying and their consumers offer their ability to make use of their good even if their own frequency of usage is much lower. However, the related fact that their renting is much inexpensive than buying supply-side renters or their investments.
There are few categories where value of average order to rent something is high enough to warrant it rent out.
HomeAway and Airbnb work because people make their living using them. They will be renting their home for $100 each night and are over annual income and number of people. If these are rented at each night and this will be putting them in top 0.75 percent of their income earner worldwide. Here suppliers can make their living platform and make their big difference in their mentioned engagement and will be enhancing their fill rates.
Suppliers in their rental marketplace and will be doing their double work as their suppliers in buying based models. Suppliers in rental marketplaces and needs to delivery and logistics in both ways which typically leads to more friction.