Now you can generate income from things you’re not using, writes Izwan Ismail
WHEN Indran Gegathesa bought a RM2,500 road bike bag a couple of years ago, he didn’t expect that he would only use it once for a competition overseas.
With the bag collecting dust in his store room at home, an idea came to mind.
“Why don’t I rent it out?” he thought.
Since there was no online rental platform available in Malaysia then, Indran thought this would be a good idea to introduce it to the market. This led to the creation of RentSmart Asia, a fully insured
peer-to-peer online rental platform.
The 41-year-old IT specialist, who has an MBA and years of experience in companies such as HP and Hitachi Data Systems managing servers and back-end systems, developed RentSmart Asia (www.rentsmartasia.com) with his business partner Parthiven Shan.
“The platform lets you rent out your under used items and gives you low-cost and convenient short-term access to things you need,” says Indran, who is the CEO of the start-up while Parthiven is its COO.
“RentSmart Asia connects people with unused idle belongings to those who need them. With a combination of risk-profiling technology and insurance, we aim to make it possible for anyone to have access to almost any item they need,” he says.
Indran, who is also an active triathlete, says the rental platform aims to do for rentals what eBay did for buying and selling used items.
“The business model leverages on the concept of a sharing economy,” he says.
“RentSmart was conceptualised because we believe people don’t have to buy the things they only use occasionally, relieving one of the burden of buying and maintaining new assets. Whether it’s financially or environmentally driven, with today’s global economic pressure, people are less and less interested in owning things,” says Indran.
CREATING THE PLATFORM
The idea of creating a rental platform for underused products may sound easy but there are many factors to consider.
“The problem is identifying people who genuinely want to rent products and safeguarding those who rent out the products,” says Indran.
All items on RentSmart Asia are fully insured to eliminate risks. Renters are obligated to place a deposit ofRM100.
Since its soft launch in June last year in the Klang Valley, RentSmart Asia has gained traction among consumers needing short-term rentals such as cameras, projectors, screens, PA systems, bicycles, winter jackets and camping gear.
Currently, there are approximately 500 items listed, with unusual items such as a Japanese bow and arrow set called the Yumi.
Items are priced per day, with discounts available for longer rental periods.
For those placing their items up for rent, the products are insured up to RM5,000.
“This will give them peace of mind as they know they will get paid accordingly should the product be damaged or stolen,” says Indran, who has also placed some of his personal underused items up for rent.
So far, he claims there have been no incidents of damage or loss.
When asked how people put a price on the products they want to rent out, Indran says the RentSmart Asia website has a built in calculator that assists people on price.
One just needs to fill in the original price and the year the product was purchased.
As for the delivery of products, Indran says renters will have to collect them personally but products are sometimes delivered to the customer by those who list their products.
“It also depends on the product. For example, a person who wants to lend his or her drone may want to brief the lender on how to operate it. This is to minimise unwanted incidents,” he says.
SECURITY
Security is one of the most important elements in this new product renting platform. Indran says every user is validated.
“They also have to declare if their product has flaws, for instance, if the body is chipped etc, using photos accompanying the products.
Before the products are listed, several photos of the product have to be taken from various angles and submitted.
“This, in a way, safeguards the lenders too as they have proof of the condition of the product prior to handing it over to another person,” says Indran.
Currently, 50 product owners are already on RentSmart Asia.
“The rental market is an under-served area. One can hardly find any shops offering this service except for costume rental shops.
“There is a huge market. We live in a world where buying is not necessarily the answer to retail therapy,” he says.
“Let’s say your new company needs a few laptops for a few months. It’s more economical to rent rather than buy new laptops.”
Through RentSmart Asia, he adds, you can just rent a barbecue pit for a party or find that beautiful dress with matching shoes for a party at a fraction of the actual cost.
Being a social sharing platform, users of RentSmart Asia are also able to meet like-minded people and develop meaningful relationships through such sharing of belongings on the platform, he says.
“This concept of sharing creates a more sustainable living environment. People can continue to reuse existing items that still have life in them. It helps reduce wastage too.
“Our motto is ‘rent what you want, buy what you need’,” adds Indran.
Currently, RentSmart Asia only operates in the Klang Valley but Indran plans to explore opportunities in Johor Baru and Penang.