Low AOV Kills Equipment Rental Marketplace Economics

Here’s one reason rental marketplaces are so tough to scale: the unit economics don’t work easily.

Let’s say your average booking value is $60. With a 20% transaction fee, you make $12 per order.

That $12 has to cover:

• Demand generation (often paid ads in the early years)
• Platform costs
• Customer support
• Your profit margin
  

Compare that to something like Airbnb, where average bookings are hundreds or even thousands. There’s just more room to absorb acquisition costs and still be profitable.

For rental aggregators, unless they reach scale or become a household brand organically, the numbers stay tight.

#TWICECommerce #MarketplaceStrategy #RentalEconomics #UnitEconomics #Recommerce