The concept of the sharing economy as a money maker/saver is by no means a new one to the millennial audience – we have examined the potential of platforms like Airbnb and Uber extensively in the past.
However, today we are reviewing Fat Lama, a new online marketplace that allows you to rent out or borrow almost anything from people around you.
TABLE OF CONTENTS
Fat Lama Review
What is Fat Lama?
Fat Lama is a peer-to-peer rental platform that allows people to monetize their existing possessions by renting them out to people nearby (fully insured).
The platform is designed to work to the mutual benefit of both the borrower and lender – whilst it enables the lender to turn their unused items into profit, it also saves borrowers money by avoiding unnecessary purchases.
There is no limit to the number of things you can find on the platform, from everyday items like a drill or bike, to more expensive bits kit like DSLR cameras and DJ decks.
How do you use the platform?
The experience of using the platform varies depending on whether you are a borrower or a lender.
As a lender, you just need to create an account and then you are free to list as many items as you like on the platform for free. It won’t ask you for anything else until you make your first rental, when you will be asked to submit your ID and bank details so the platform can pay out to you directly.
Once that’s established it’s just a case of approving/ declining rentals as they come in and arranging the handover with the borrower. All your items are fully insured on the platform so Fat Lama does take a 15% commission to cover this and the administration, but this will only come off when the rental has been approved so you will never lose money on the platform.
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What are the Pros and Cons for a Millennial Audience?
Like most peer-to-peer rental platforms the obvious drawback comes in supply and demand. The nature of peer-to-peer means that there tends to be greater concentrations of listings in areas where there are the most people – ie. cities. This is all well and good if you are based centrally, but supply can be problematic if you are living out in the sticks.
However, there are certainly benefits to balance this out. On the borrower’s side, Fat Lama makes items much more accessible to a millennial audience by not asking for a deposit. This, combined with the generally lower prices of peer-to-peer, means that millennials can afford to try things they could never contemplate buying – flying a drone, renting a surfboard, trying out the latest film camera etc.
The platform benefits millennial lenders as well, as so many young people have assets of some sort (laptops, speakers, cameras etc.) but are relatively cash poor. By allowing, people to unlock the earning potential of items they already own, Fat Lama allows its lenders to make money without having to commit to any capital output.
Hacks and Tips:
If you are wondering which items rent best on the platform check out their latest blog series with a break down of the highest earning rentals in each category.
New users get $20 credit towards their first rental – watch out for a pop-up with a discount code when you sign up!
Image source: Forbes