Peer-to-peer sharing in Australia
- where to rent household items
When I was looking into hiring camping gear, it lead me to several sites where businesses hire out camping and hiking gear to the general public. I initially struggled to find a platform where I could hire equipment from a neighbour.
Do these platforms exist? Or is the sharing economy not a thing in Australia? Is it only for cars and houses?
I found that while the sharing economy in Australia is strong when it comes to cars and accommodation (Airbnb), it is not as strong when it comes to other items in our lives. But that does not mean it does not exist. And it does not mean that the industry is not growing and getting stronger. If you want to know where to borrow/hire items from your neighbours, I have found 10 platforms that facilitate peer-to-peer sharing. These platforms or programs cover a range of items – from party equipment to kid’s stuff, from tools to cameras and so much more. The range of products might not be as great as what you would get at a store but keeping the benefits associated with sharing economy in mind, this would matter very little. Plus you could be surprised with what you find.
Here I cover:
What is the sharing economy and why does it matter?
The sharing economy “…connects consumers to people who have products or services to sell, hire or lease via an online platform“. It promotes the idea of reusing an item instead of purchasing something new, thus savings further resources being extracted from our planet.
This is also referred to as peer-to-peer sharing and it’s not as radical as it sounds. Firstly we have been doing it for years through libraries where we borrow books, DVDs and other media to consume at little to no cost. It’s not exactly peer-to-peer sharing but we are sharing resources with the local community, facilitated through local councils.
Uber and similar companies have made car-sharing easily accessible and accepted by many. So too sharing accommodation, thanks to companies like Airbnb. These companies have taken advantage of technology that allows users to easily search for what they need and securely transact with people they have never met.
And it seems further advances in technology are driving the expansion of this business model, beyond cars and accommodation, to common household items.
Why take part in the sharing economy for common household items?
Sharing (or hiring) an item is a great way of reusing an item – making sure an item is reused in its intended form.
But it’s more than that. Sharing leads to reduced consumption – no new virgin materials are used to fulfil the function the product provides. And this hits the second R in the 5R model, which gets the eco-friendly tick.
This reduction in consumption, by reusing items that already exist, helps transform the economy into a circular one, as depicted in the diagram below:
Sharing items forms a part of the circular model – it’s the use-reuse-return-use arm shown in the diagram above.
What’s so great about that?
The circular economy is “a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible”.
The benefit is that this shifts society away from the linear model, where so much waste is produced and so much is extracted from the earth to keep it going. And it’s a step better than the recycling economy, which also involves extracting further resources and producing waste, to make recycled goods reusable.
Other benefits of taking part in the sharing economy include:
* You save space – if you have limited space in your home, hiring from someone else would be a good option for you
* You save time – there is time associated with maintaining and repairing a product. If you are only going to use it once or twice in your life, do you want that headache?
* You save money – it’s not always the case that you will save a lot of money as it is all dependant on the hiring rate and how often you are likely to use the product, but in general yes, you can save money from shifting towards renting over buying.
* You have access to high-quality products – products that you may not be able to afford outright
* You can expand your life experience – it allows you to explore a new hobby, try out a new instrument or activity, without too much capital outlay
In a report on consumer behaviour in 2021, Deloittes found that 39% of people reduced their consumption of new products and goods. I found that really interesting.
This is not a fringe activity – this is getting close to being mainstream.
Let’s do our bit to normalise this a bit further.
Is peer-to-peer sharing cost-effective?
When I started looking into hiring camping and hiking equipment, it became apparent that hiring equipment is not always cheaper than purchasing it outright, especially if you can source the item second-hand.
It’s not because the hiring charges are higher than the product price – it’s because the number of uses you would get out of the item before it becomes cheaper for you to purchase outright is not as high as you would think.
The same is also true when it comes to peer-to-peer sharing.
You would think with words like “sharing” and “peer-to-peer”, it would cost next to nothing. That you would be “borrowing” the items from your neighbour.
That’s not how this works.
Peer-to-peer sharing is not free since often a rental/ hire fee is applicable. And the rate people charge can vary.
The costs associated with hiring an item and whether it is cost-effective for you depends on several factors. These are the factors to consider:
(1) Platform used – there are different models that sharing platforms can adopt and the costs associated with these models can vary. From libraries that charge a nominal fee to full online sharing sites which charge a high fee for their services – the additional costs to the consumer can all depend on the platform. I provide some general information on this in the table below.
(2) How often you will use the item – if it’s for occasional use, hiring can make sense. If you will be using it more often, it is possible the total hire costs over time will be higher than the price of the item brand new.
(3) What you would have purchased if you didn’t hire – you may decide to hire a premium product, something you may not buy outright. If that’s the case, the cost of hiring a premium product will be much less than the cost of the item brand new, making hiring a very cost-effective service.
So really the answer to whether or not it is cost-effective to participate in peer-to-peer sharing all depends – it depends on what you will be hiring, how often you will be using the item and what platform you are renting from.
So you may be wondering why cost even matters if borrowing/ hiring is the most sustainable option?
Well, I bring up cost because I am taking a very pragmatic approach to these things – it’s not just about what’s good for the planet, it has to be cost-effective for me as well. I am willing to pay a premium to prevent waste and reduce my carbon footprint but that premium needs to be reasonable and not excessive.
And I also write this for a wider audience and not just the sustainability crowd – and cost is often a factor with wider audiences.
How does peer-to-peer sharing work and is it safe?
The question of how peer-to-peer sharing works and whether it is safe also depends on the platform you are using.
After reviewing the sites mentioned in the next section, I have found the platforms used in the sharing economy can fall under one of these three categories:
(1) Libraries – typically you pay a membership fee and this allows you to access items in a library. The library is stocked through grants and donations and is often run by members that volunteer their time. The cost is low and it is safe on the borrower’s end. You can see what you are going to borrow before you commit to taking it home.
This is how toy libraries work, which I’m amazed by. For an annual fee, you have access to a huge array of toys spanning your child’s early development years. To buy and discard these items would be madness given this access. I kinda wish I had made use of these services when my kids were little.
(2) Sharing site, no fees – with these platforms you go onto their website and search for the item you need, at the location you are after. Then you contact the person with the item, through the contact form on the website. Booking and payment are arranged with the person concerned – the sharing platform does not get involved. There is little upfront protection for either side, although the person with the item may charge a refundable bond to cover any potential issues. This model works when the items being lent are low cost. It may be adopted by sites that are just starting.
(3) Sharing site, fees charged – most platforms charge the person listing the item a fee, every time someone hires their item. The fee they charge can vary. I’ve seen it as high as 20%. These sites work similarly to those with no fees but often payment is taken securely, online, when the booking is made. A bond may/ may not be involved.
Whether a fee is charged or not, once the booking is secured, you pick the item up at the arranged pick-up point. When you drop it off and there is no dispute, any bond you have paid is repaid to you.
In all cases, there does need to be an element of trust – trust on your part, that what you have booked is as described. And trust on the other side, that you will return the item in one piece.
The situation is no different to sharing cars and accommodation. Except this market is not as well established.
It doesn’t mean there are more chances of there being issues – I don’t know if that is the case – but it does mean that trust may not be there. And that affects the price being charged by some people on these sites – at least that is my reading of the situation.
Where the platform is well established and has strong protections in place for the owner of the item, the rates aren’t so bad. Where this does not exist, the hire rates can vary.
It’s just something I have observed.
A tip to protect you when you are hiring – take photos or even a video, so there is some record of how it looked and operated beforehand. Especially if you notice any wear and tear on the product before using it.
What peer-to-peer sharing platforms are available in Australia?
If you are looking to borrow/hire common household items from people that live near you in Australia, check out the list below.
Below I have summarised the sites I came across when looking into this. I’m covering household items here – not cars or accommodation. And I’m not covering clothing rental sites – to me, that’s a whole other topic!
| Name | Items for sale | How they operate | Cost-effective? |
|---|---|---|---|
| Party Kit Network | Party plates, bowls, cups, cutlery and extras, all in one kit | Contact owner to arrange payment | Around $1 per place setting |
| Gecko | Chairs, tables, speakers, DJ controllers, party lights, microphones, smoke machines, slushie machines and projectors | Book and pay securely online, bond is required, this is a platform where users are rated, idenitfy is verified | On the whole yes, since this is the kind of equipment you would use on the rarest occasions and not stuff you would want in your home. |
| Kinder share | Bassinets, prams, travel cots. car seats, breast pumps, carriers and other baby and toddler related items | Book and pay securely online, bond is required | Some of the weekly hire rates are ridiculous but others charging on a monthly basis are more reasonable. Really depends on the seller. |
| Toy library | Kids toys | Pay a membership fee to access the toys in the libarary. Toys are there to be borrowed at no additonarl cost. | It doesn't get more cost effective that this |
| Tools mates hire | Cleaning equipment, hand tools, ladders, power tools, gardening tools, access equipment (lifts), trailers and plant and heavy machinery. | Book and pay securely online, bond may be required | Great if you only need the product once or twice, or you want to trial expensive equipment. |
| Kit share | Cameras, lenses, lighting, audio equipment, drones, pre and post production and various items needed for media production | Book and pay securely online, insurance can be added, users are rated, identify is verified | Unable to judge. |
| Quipmo | Surf, snow, biking, hiking and camping equipment | Book and pay securely online | Depends on the item and how often you are likely to use it |
| Fede rent | Pretty much anything! | Book and pay securely online | Depends on the item and how often you are likely to use it |
| Release it | Pretty much anything! The range was limited in my area but hopefully that changes as this had the best user interface. | Book and pay securely online | Depends on the item and how often you are likely to use it yourself |
| Stuff Hire | Anything but with a very limited range that can't be narrowed down by location | Contact owner to arrange payment | Depends on the item and how often you are likely to use it yourself |
Recent experience…
I started looking into this because I wanted to stop purchasing disposable picnicware for large parties. So I contacted my closest party kit network member to find out how much it would cost to hire items.
It was going to cost me $3.25 per person!!!
All I was after was a plate, bowl, cutlery and cups for each guest. I needed a set for around 40 people.
This is one instance where I could not justify hiring the items.
So I will be looking to see if I can get something suitable second-hand. If not, I will be buying reusable picnicware from my local supermarket. They are selling sets for $4 per person.
Now don’t let this discourage you from giving this a go – picnicware is such a low-cost item, I am not surprised by this outcome. Things would be very different if I was looking at borrowing an item that cost more full price.
xxx Tahsin
Sources:
(1) https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits
(3) https://www.accc.gov.au/consumers/online-shopping/sharing-economy
(3) https://www.gaiaresources.com.au/naturelink-circular-economy/
(4) https://www2.deloitte.com/uk/en/pages/consumer-business/articles/sustainable-consumer.html
