We once called Airbnb as ‘eBay for Vacation Rentals’, as its business model aligned so much with eBay’s. Both follow a ‘peer-to-peer marketplace model’, except eBay uses it for selling stuff while Airbnb is into rentals. Airbnb connects its peers and lets them make money renting their houses to other peers on the network.
Today, Airbnb has become a role model in itself and explained how one can tweak the existing business models to make the most out of any startup idea. You don’t always have to come up with entirely new concepts to break the market. Sometimes, even the small inspirations can give birth to new and more profitable market segments, which Airbnb already proved with its inspiration from eBay’s peer-to-peer selling business model. A strong understanding of entrepreneurship foundations can help turn these observations into practical business ideas and identify opportunities within existing markets.
Airbnb for X is one similar concept that encourages entrepreneurs to come up with new innovative ideas aligned with the same peer-peer rental marketplace model that Airbnb follows. This is not a new concept. We have seen many new startups coming afterward on the same model and yet grabbing a fair share in the market already ruled by Airbnb.
What is Airbnb for X business model?
Airbnb’s peer-to-peer rental marketplace model connects two types of peers on the platform:
- Peer as a customer: A user on the platform looking for services. For example, a vacation house to rent.
- Peer as a service provider: A verified user offering services to other peers on the platform. For example, putting own house on rent.
The core Airbnb for x business model is about cultivating a shared economy among their peers and letting them find their respective value propositions. Apart from service agreements, the platform manages to attract both types of users by offering targeted value propositions to each. Although the marketplace acts merely as a transaction facilitator, it must attract stakeholders from both the ends. Unless someone is ready to rent his or her product or service, the platform cannot proceed to serve the other kind of peers.
How Airbnb make money?
As the number of customers and service providers grows, using CRM for small business can help entrepreneurs organize customer information, track interactions, and maintain better relationships with users.
- Commission from the service providers: A percentage cut from the service provider on each successful transaction done by the customers for them.
- Transaction fee from the Guests: A percentage from the customers on each transaction done by them to book the service.
- Other charges: The platform may include other charges to make additional money or manage overhead costs. Depending on the profit margin and type of service an Airbnb-like marketplace can easily accommodate the revenue sources such as cancellation charges, late fees, damage charges, etc.
One such example is rentlikeachampion.com.
While many entrepreneurs would not dare to touch the property rental market where Airbnb is already a giant contender, they dared to enter the same market by moving into an even deeper section of the niche. They offer weekend house rentals to the students and people visiting college towns of America to attend a game.
Each year, hundreds of gaming events take place across the States and people move around to attend or watch these games. During these times, the weekend house rentals allow them to relish a comfortable home-stay and enjoy the games, instead of wandering around for expensive hotels. They have been extremely successful and are quite popular among college students.
How can we implement Airbnb’s business model to rent other things?
Rentlikeachampion is a perfect example of how you can play around with an existing market and choose a sub-niche that not only lets you avoid a direct face-to-face with the giants but also create an entirely new segment without competition. Property rental is a very small section of this market. The particular business model has the potential to rent almost everything that you can sell. Entrepreneurs can also look beyond traditional rental categories and explore niche opportunities, including ideas that support elevating small businesses with wholesale planters and other specialized products.
The core concept of Airbnb’s model is broad enough to accommodate a lot more than just vacation houses or weekend rentals. You can use any decent Airbnb clone script and build your very own customized peer-to-peer rental marketplace. With some small nips in the existing business model, you can customize your own Airbnb clone to accommodate unique features essential for renting many other types of products and services.
As with any marketplace business, clear communication between customers, service providers, and platform operators is essential, which is why communication should be a priority for every entrepreneur.
Based on the business opportunities in the local market or scale of the investment, the following is a list of startups you can undertake in 2019 on the same peer-to-peer rental marketplace model:
Before choosing a specific niche, it can also help to understand what a micro business is, especially when starting with limited resources and a small team.
1.Event Venue Rental
We often need large spaces to organize events. Renting the same from event companies cost a lot. Alternatively, you can let individuals with spare spaces rent their lawns to the people who need them for conducting certain events. You can earn from the commissions and transactions fee given by both space owners and the customers.
2.Luxury Car Rental
Who does not love luxury cars? We wish if we can take one for a long trip or for a ball. Sadly, they are too expensive to not only purchase but also rent from traditional car rental companies. It could be a great idea to let people who have such cars rent occasionally to the people who would love to drive one for special events and occasions.
3.Boat Rental Business
People in certain places own personal boats for daily use. Let people who have boats in these prominent destinations, rent to the tourists, and make some extra cash out of their otherwise personal boats. You can extend the same business model to rent cruise ships, as well.
4.Electrical Appliances Rental
We often need electrical appliances do undertake certain projects. For example, electric saw, vacuum cleaner, milling machine, tiles cleaners, etc. The machines are generally too costly for individuals who use them occasionally. Let the professionals who have these machines rent the same to individuals who need them occasionally.
5.Construction Supply Rental
Construction companies or contractors often go out of work in non-peak seasons, leaving their machinery and equipment idle in the warehouse. It’s better to let them rent the same to other contractors who need them now.
6.Storage Space Rentals
People with big houses often have spare storage spaces in their basements or storerooms. You can create a platform to let these people rent their storage spaces to others, and make some extra money.
7.Co-working Space Rental
You don’t have to as big as WeeWork to start a co-working rental business. You can simply connect all the privately held co-working spaces in your area with freelancers and small startups on your platform. You can become a co-working space business without even owning a single property of your own.
Author By-line: Jessica Bruce
I am a professional blogger, guest writer, Influencer & an eCommerce expert. Currently associated with ShopyGen as a content marketing strategist. I also report on the latest happenings and trends associated with the eCommerce industry. Before launching any of these ideas, entrepreneurs should also consider finding their purpose in business so the business model is aligned with their long-term goals and interests.