Erento
erento is an online rental marketplace. It brings together businesses with products or services to hire out with customers wanting to rent them. With more than 1.5 million rental products across 2,200 product categories, it serves as a one-stop shop for renting everything from wedding dresses and iPhones to karaoke machines and heavy construction equipment.
Background and history
erento was founded by Chris Möller and Uwe Kampschule in 2003. The company was privately funded when it was launched and, following success in Germany, raised more than $2 million in venture capital in order to expand its service across Europe and the United States. Investors include Germany's Holzbrinck Ventures, which has taken a 13% stake, and the Samwer Brothers, founders of online auctioneer Alando, which they sold to eBay in 1999 for $54 million. The three Samwer brothers also were behind Jamba!, a mobile content company they sold to VeriSign (VRSN) for $273 million in 2004.
erento aims to do for renting what Amazon.com has done for online shopping erento currently features over 1.5 million rental products such as laptops, carpet steamers, digital cameras, sports cars, lawn mowers, hedge trimmers, handbags, televisions, holiday cottages, cement mixers and snowboards. It even features a Bugatti Veyron that can be hired for £17,000 per day. Short-term rental of all sorts of products (excluding real estate and holiday apartments) already represents an estimated €108 billion ($160 billion) annual market in Europe and is expected to grow further as the internet makes it easier to find specific items available for rent erento's revenues - based on commission - across Europe grew 170 per cent in 2008, delivering enquiries worth €505 million to rental companies. It now has around 470,000 registered users, over 9,200 rental companies and operates in 26 countries worldwide.
The formation of internet marketplaces often occurs quickly in response to social or economic trends. It has been widely reported that the current recession may have contributed to the rapid growth of erento as consumers are more likely to consider renting instead of buying in times of financial hardship. Environmental concerns, fast depreciation of goods, and a more transient workforce also mean that consumers are increasingly searching for rentals online. The company experienced monthly growth of 25% in 2008. This growth is expected to continue in 2009.
How it works
Rental suppliers upload their items, including an image, item description, and price for the rental duration. Renters then search and find their desired items according to location and price. The location is a key differentiator because rental items need to be picked up or delivered, as well as returned, but it's often difficult to determine where a rental company or its goods are based. Once prospective renters find what they need, they specify how long they want the item and fill in their contact details. The rental supplier contacts the prospective client directly to close the deal, then confirms the transaction on erento. The company charges a display fee per item and takes a cut of the rental price of any item procured through its site.
By providing a product-based, proximity-focused service, erento takes away lot of the hard work out of trying to find specific rental items from trusted lenders.
erento has also seen a dramatic uplift in interest from hire companies looking for cost effective ways to drive sales. For major hire companies it gives access to another sales channel - for both consumers and businesses - and for small rental companies it is an efficient way of getting an online presence without investing heavily in their own e-commerce site. erento guarantees to return at least double in customer enquiries the value of a customer's initial marketing investment The company delivers hire companies about one million euros of rental business each day. Customers in Europe include HSS Hire, MVS Zeppelin, Liebherr, Andrews Sykes and Hire Station.