Erento
Encyclopedia
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 iPhone
s to karaoke machines and heavy construction equipment.
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 According to a poll by YouGov
, 76% of people looking to rent would go to the internet first to find what they need; rising to 88% for those aged 25–34.
, raised more than $2 million in venture capital in order to expand its service across Europe
and the United States
. Investors included Germany's Holzbrinck Ventures
, which took 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 were also behind Jamba!
, a mobile content company they sold to VeriSign (VRSN) for $273 million in 2004.
erento's revenues - which as this point were commission based - across Europe grew 170 per cent in 2008, delivering enquiries worth €505 million to rental companies. Currently erento has around 470,000 registered users, over 9,200 rental companies and operates in 26 countries worldwide. In July 2009, ex-eBay executive Oliver Weyergraf was appointed as Chief Executive Officer.
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 and rapid growth is expected to continue through 2009.
In June 2011, VM Digital announced it's takeover of erento. VM Digital Beteiligungs GmbH (daughter company of Vorarlberger Medienhaus Group) is an internet group with a widespread portfolio of special interest and classified advertising websites. Together with Quoka GmbH, VM Digital represents the internet group Vorarlberger Medienhaus Group in all German speaking countries.
By providing a product-based, proximity-focused service, erento aims to remove the frustration in searching for specific rental items from trusted lenders.
erento has also seen an 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.
Marketplace
A marketplace is the space, actual, virtual or metaphorical, in which a market operates. The term is also used in a trademark law context to denote the actual consumer environment, ie. the 'real world' in which products and services are provided and consumed.-Marketplaces and street markets:A...
. 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
Renting
Renting is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from landowners...
everything from wedding dresses and iPhone
IPhone
The iPhone is a line of Internet and multimedia-enabled smartphones marketed by Apple Inc. The first iPhone was unveiled by Steve Jobs, then CEO of Apple, on January 9, 2007, and released on June 29, 2007...
s to karaoke machines and heavy construction equipment.
Background
erento aims to do for renting what Amazon.comAmazon.com
Amazon.com, Inc. is a multinational electronic commerce company headquartered in Seattle, Washington, United States. It is the world's largest online retailer. Amazon has separate websites for the following countries: United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and...
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
Bugatti Veyron
The Bugatti Veyron EB 16.4 is a mid-engined grand touring car. The Super Sport version is the fastest road-legal production car in the world, with a top speed of . The original version has a top speed of...
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 According to a poll by YouGov
YouGov
YouGov, formerly known as PollingPoint in the United States, is an international internet-based market research firm launched in the UK in May 2000 by Stephan Shakespeare, now Chief Executive Officer, and Nadhim Zahawi...
, 76% of people looking to rent would go to the internet first to find what they need; rising to 88% for those aged 25–34.
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 GermanyGermany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, raised more than $2 million in venture capital in order to expand its service across Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Investors included Germany's Holzbrinck Ventures
Georg von Holtzbrinck Publishing Group
Verlagsgruppe Georg von Holtzbrinck is a Stuttgart-based publishing holding company which owns publishing companies worldwide. Holtzbrinck has published everything from Salman Rushdie's Satanic Verses to classics by Agatha Christie, Jean-Paul Sartre, Ernest Hemingway and John Updike...
, which took a 13% stake, and the Samwer Brothers, founders of online auctioneer Alando, which they sold to eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
in 1999 for $54 million. The three Samwer brothers were also behind Jamba!
Jamba!
Jamba! is a premium-rate monthly SMS mobile phone content provider, based in Berlin, Germany. In China and the company's English-speaking markets—currently Australia, Canada, Ireland, New Zealand, the United Kingdom and the United States—the company operates under the name...
, a mobile content company they sold to VeriSign (VRSN) for $273 million in 2004.
erento's revenues - which as this point were commission based - across Europe grew 170 per cent in 2008, delivering enquiries worth €505 million to rental companies. Currently erento has around 470,000 registered users, over 9,200 rental companies and operates in 26 countries worldwide. In July 2009, ex-eBay executive Oliver Weyergraf was appointed as Chief Executive Officer.
The formation of internet marketplaces often occurs quickly in response to social or economic trends. It has been widely reported that the current recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
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 and rapid growth is expected to continue through 2009.
In June 2011, VM Digital announced it's takeover of erento. VM Digital Beteiligungs GmbH (daughter company of Vorarlberger Medienhaus Group) is an internet group with a widespread portfolio of special interest and classified advertising websites. Together with Quoka GmbH, VM Digital represents the internet group Vorarlberger Medienhaus Group in all German speaking countries.
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.By providing a product-based, proximity-focused service, erento aims to remove the frustration in searching for specific rental items from trusted lenders.
erento has also seen an 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
HSS Hire
HSS Hire Service Group Limited is a supplier of tool and equipment hire in the UK and Ireland, as well as being a logistical and technical partner to businesses of all sizes. Operating under the banner of HSS Hire, the Group has a network of over 250 outlets. HSS Hire originated in Kensington, west...
, MVS Zeppelin, Liebherr
Liebherr
* The Liebherr Group, a German manufacturing complex established in 1949 by Hans Liebherr* Liebherr Grazer AK* Liebherr T 282B, an off- highway, ultra class, rigid frame, two- axle, diesel/electricappointed...
, Andrews Sykes and Hire Station.