Why Equipment Rental Marketplaces Fail — and How Professional Supply Can Fix It

Why equipment rental aggregators haven’t scaled — and what could change that

Despite the success of platforms like Uber and Airbnb, there’s still no dominant aggregator for equipment rentals. Tuomo and Karri discuss why — and how the future might look different as software infrastructure evolves.

1. The aggregator gap

Every major consumer vertical seems to have its aggregator:

  • Uber controls rides
  • Airbnb controls short-term stays

But in the world of equipment rentals, no platform dominates globally or even nationally. There are small, vertical-specific players, but no household names connecting the market.

2. Operational friction

Unlike digital or pure service platforms, rental marketplaces have physical complexity:

  • Items need to be inspected, cleaned, and refurbished between uses.
  • Consumers are rarely willing to take on that work.
  • Supply therefore becomes limited to a small, active minority of users — often less than 5%.

When most of the work happens between orders, scalability breaks.

3. The unit economics problem

Even if a marketplace overcomes the operational hurdle, the numbers rarely add up.

Example:

  • Average booking value: €60
  • Marketplace fee: 20% (€12)
  • Paid acquisition cost: often €10–15 per transaction

This leaves almost no margin — unlike Airbnb, where the average booking can be €300–500.

Add logistics costs for local pickups, transportation, or packaging, and the model quickly becomes unprofitable without large-scale organic demand.

4. Geography and item size

Physical rentals are also inherently local.

If customers and suppliers must live within one kilometer for a C2C transaction to work, the addressable market becomes fragmented.

Shipping helps only for small or light goods (like board games or puzzles). For items like trailers, power tools, or lawnmowers, hyperlocal supply and demand matching is necessary — which severely limits scalability.

5. The professional supply opportunity

The path forward may not be pure peer-to-peer, but aggregating existing rental operators.

These businesses already have:

  • Trusted brands and logistics processes
  • Staff and infrastructure for inspection
  • Active, ready-to-rent inventory

If marketplaces can connect to these operators — offering visibility and traffic rather than running the operations — the model becomes far more viable.

6. The missing layer: technology

The real bottleneck isn’t demand — it’s software.

Most rental businesses lack modern systems for:

  • Individualized inventory tracking
  • Dynamic availability
  • Seamless marketplace integrations

That’s where Twice Commerce comes in.

By serving as a white-label recommerce OS, Twice enables any rental business to list its items directly into marketplaces or aggregators without extra development.

It’s the infrastructure that finally makes aggregated rental supply possible.

Karri: We’re diving deep into the world of aggregators and why there are no aggregators for equipment rental businesses. Everyone knows companies like Uber or Airbnb that control demand in their spaces — but is it really true that there are none in rentals, or just none that have succeeded?

Tuomo: Yeah, so if we look into equipment rentals, there are of course aggregators — in most product categories, there’s some form of aggregation. The question is whether there’s a dominant player that operates across borders, say North America and Europe. And the answer is no.

Tuomo: There isn’t a clear dominant aggregator controlling demand and the market. And there are a few reasons for that.

Tuomo: From an operational perspective, rentals are harder to scale. The supply side is difficult to secure, especially in consumer-to-consumer models, because so much work happens between orders — inspection, refurbishment, logistics. That makes supply limited and inconsistent.

Tuomo: In most C2C marketplaces, only 2–5% of users actually provide supply regularly, while 90% just consume from that small group.

Tuomo: Then there’s the unit economics problem. Let’s say the average booking is €60, and your marketplace fee is 20%, so you make €12 per transaction. That’s your revenue to cover everything — marketing, tech, support.

Tuomo: If you’re relying on paid acquisition early on, that €12 gets eaten up immediately. You need to become a household name to scale, which is difficult when your average order value is so low compared to, say, Airbnb.

Karri: And the logistics side makes it worse — some small items can be shipped, but for equipment like lawnmowers or trailers, it has to be local.

Tuomo: Exactly. One marketplace told me they found that for C2C transactions to work efficiently, the lender and renter had to live within about one kilometer of each other. When you start drawing those circles, the market gets very fragmented very fast.

Tuomo: The way to turn this around is by inviting professional supply — businesses already renting out equipment. For them, a marketplace can be an extra sales channel rather than their only one.

Tuomo: But that requires giving them proper tools — software that not only lists their inventory but lets them actually run their business. That’s where Twice Commerce comes in. Our job as a white-label recommerce OS is to make sure any business using Twice can list their items easily to any marketplace or aggregator.

Tuomo: That’s the infrastructure needed before a rental aggregator can ever truly scale.