Remember when music was a physical product?  From records to LPs to cassettes, music used to be a tangible good sold in stores like Tower Records and Sam Goody.  Think back to those (now vintage) CD cases and media storage racks filled with hundreds of albums -- a physical testament to a devotion to music.  Fast-forward to today and things are a bit different.  For one, music is largely a digital experience with audio files downloaded onto various devices.  Although music ownership still exists, there's another trend where music is a less a possession and more an experience.  From Pandora to Rhapsody, several emerging services provide listeners access to music on-demand.  Rather than own a finite number of songs on a device, on-demand services allow streaming from a large library of shared digital music.  People pay to use versus pay to own -- an emerging concept that extends far beyond music.

If you keep up with any of the major publications, you may have noticed several articles referencing the changing relationship between wealth and ownership in today's economy.  Due to the recent housing crisis, this Wall Street Journal article explains the misconception of home ownership (home ownership no longer yields the same returns compared to 30 years ago) and re-defines "the new American Dream" as renting instead of buying.  Another hot topic in the press during the past couple weeks has been around collaborative consumption, a movement I referenced in another blog post as "the rapid explosion in traditional sharing, bartering, lending, trading, renting, gifting, and swapping redefined through technology and peer communities."  This phenomenon, which has been covered by TED, The New York Times and WIRED has been spearheaded by two visionaries, Rachel Botsman and Roo Rogers.  This duo recently co-authored a book on the topic called, What's Mine Is Yours: The Rise of Collaborative Consumption which is set for release in just a couple weeks.  Coincidentally, another book called The Mesh: Why The Future of Business Is Sharing focuses on eliminating the burdens of ownership through shared access, and is set to hit bookshelves later this month as well.  Both describe a new way of doing business, citing several players disrupting the notion of ownership in favor of usership.  Previously, I've mentioned Swap.com as the leader in swapping.  Services like AirBnB and CouchSurfing are revolutionizing extra space by allowing people to rent out spare futons, bedrooms, apartments and homes.  ZipCar and fellow MassChallenge finalist, RelayRides, are changing the face of car ownership.  Lisa Gansky's Mesh Directory highlights hundreds of others (including Rentcycle) leading the way, and this video by Rachel Botsman features a few powerful case studies too:

As an evangelist for communal exchange, it's great to see collaborative consumption enjoying its time in the sun with some much-deserved buzz.  But the funny thing is, this is not a new concept.  The notion of paying for access versus ownership has been around for quite some time.  What would you say if I told you there are several age-old institutions built upon a dedication to usership?  These are things you and I use everyday.  Consider some of our public commons that have been enjoyed for centuries without a need to own.  For example, we use roads yet we don't own them.  All citizens are granted access to streets and highways through our payment of local taxes and tolls -- in essence, we pay a subscription fee to use the roads.  Similarly, we can borrow books from the library.  Library books grant accss to information on-demand, where content is shared among a community of users.  

The Internet takes this concept to a whole new level, opening doors to all sorts of shared content.  There's a high probability that in the not-too-distant-future, we will not "own" any music, books, movies, etc.  The truth is this is already possible (as I referenced with the music example earlier), but the principle is only just getting its bearings.  Soon, instant access to all these media through subscriptions and on-demand services will become mainstream... without having to own anything.  Chances are you're already doing this through Netflix's instant streaming capability.  You might be surprised that this is the same premise behind cloud computing where servers aren't owned, but shared through a pay-per-use model.  The same principle applies to software as a service (SaaS) where licenses are not owned, but accessed on a subscription basis.  Shared access is all around us.

This pay-per-use model is at the core of renting.  You pay to use things only when you need them.  You can stop paying at any time, at which point, you return the good until you need it again.  This is what renting is all about -- reducing the complexities of ownership through usership.  This is also at the heart of communal exchange.  Collaborative consumption and mesh businesses are not necessarily new, but rather, part of a larger trend of shared access where people pay for use instead of ownership.  Rentcycle is leading the way for collaborative consumption and is proud represent the rental opportunity by making the process easy for the mainstream.  We strongly believe that this ideal of shared access is here to stay.

The best part is: this is only the beginning.

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Sure, Rentcycle is all about renting.  In fact, we might just be renting's #1 fan.  But Rentcycle is also a fan of collaborative consumption, a movement that is described as "the rapid explosion in traditional sharing, bartering, lending, trading, renting, gifting, and swapping redefined through technology and peer communities."  This new wave of exchange is really gaining momentum, which makes now a great time to be involved.  Stay tuned for a full blog about the collaborative consumption movement (which was featured in this month's issue of WIRED).  But for now, I'd like to talk about one of renting's partners in crime -- swapping.

Swapping is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.  Swapping goes back to the caveman days, but has recently been revived thanks in part to the Internet and passionate communities that are bringing swapping back to the mainstream.  Like renting, swapping shares many of the same inherent benefits -- you save money by swapping your unused goods for someone else's; you save space by adopting an, "out with the old, in with the new" attitude; and you reduce your carbon footprint by reusing the things we already have as a society, versus producing more waste.  It's a great concept with a dedication to sharing that would make any mom proud. 

The swapping category has several players.  But, in my mind, the clear winner goes to the company who owns the category name itself.  As of today, category leader Swaptree became Swap.com.  You might even say they swapped names (okay, now I'm getting corny)!  This is a big deal for a young company operating in a developing category and says a lot about the dedication of the company.  To date, Swap.com has facilitated 1.6 million member swaps, saved members $10.3M, and reduced society's carbon footprint by 9.3 million lbs.  Swapping provides yet another alternative to buying, promoting communal living.  And as the numbers show, clearly it's starting to catch on.

Rentcycle is priveleged to have a strong relationship with Swap.com.  As part of the MassChallenge, Rentcycle has been matched with Swap.com's CEO, Jeff Bennett.  Jeff is really helping Rentcycle get more plugged into the collaborative consumption movement, which Swap.com is spearheading.  Between the recession that has people pinching pennies and the green movement where consumers are more conscious about the environmental impact of their purchases, it's an exciting time to be part of this conversation.

The nice thing about this new wave of conscious consuming is that we, as consumers, have options.  Buying and selling are no longer our only choices.  Ownership is being replaced by usership.  Just as Rentcycle allows temporary use through renting, Swap.com allows temporary use through swapping.  So whether you rent, swap, barter or trade, it's time to jump on the wave -- the water's fine!

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Over the weekend, Rentcycle celebrated two firsts: our first television debut and our first mention in one of our favorite publications, FastCompany Magazine!  It's great to see increased media coverage and interest in renting as a concept.  Look for more of this as Rentcycle brings renting even further into the mainstream!

The TV segment which aired on ABC News Philadelphia was all about how more people are turning to renting as a means to save money.  The report highlighted the economics of renting, stating, "the more expensive an item is, the more money you'll save by renting."  The segment touched on unique items people might not realize can be rented, referencing services like REI (camping gear), BookSwim (Netflix for books), Guitar Affair (guitar rentals) and ZipCar (on-demand cars).  Rentcycle was cited as, "a really great aggregator of the things you can rent," by rental expert Eric Ginsburg.  Watch the 2 minute segment for yourself here.

The September issue of FastCompany Magazine came out over the weekend with an interesting article in their Next Strategy section.  Titled "Welcome to the Copy Shop," the article highlights some of the web's most successful businesses with examples of startups who strive to apply similar business models to new industries.  Top business models included Facebook, Foursquare, Twitter, Yelp and Zappos, among others.  Not too surprisingly, Rentcycle was compared to OpenTable which is reminiscent of the TechCrunch article that dubbed us OpenTable for local rental businesses.  Having utmost respect for OpenTable, we are flattered and have aspirations for similar success.  Another interesting piece of the article highlights companies with models similar to Netflix.  Included on this list are Bookrenter and Chegg for textbooks, RentTheRunway for high fashion, and SproutRobot for seeds.  Since Rentcycle serves this space, we are huge fans of these innovative rental services.  Read more by picking up a copy of FastCompany and turning to page 44.

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Greetings from the East Coast!  For (at least) the next three months, Rentcycle will be a bicoastal startup.  We're still based in San Francisco, but now we have a physical presence in both The Bay Area and the city of Boston -- the best of both worlds!  Who do we have to thank for this good fortune?  Along with the state of Massachusetts, the city of Boston and several key sponsors, a budding organization called MassChallenge is shaking things up in Bean Town.

The easiest way to describe MassChallenge is a startup that helps other startups.  In fact, the mission is to "help early-stage entrepreneurs win."  Founded by John Harthorne, David Constantine and Akhil Nigam, the goal of MassChallenge is to connect entrepreneurs with the resources they need to launch and succeed immediately.  In doing so, they've launched the world's largest global startup competition.  Part competition, part accelerator, MassChallenge pools positive elements from the best startup programs into a whole new model.  440 teams from 26 countries competed to make the final round in Boston.  Along with 110 other teams, Rentcycle was named a finalist (score!) so we quickly booked a flight from SFO to Logan International.  For the next three months, we'll enjoy access to a slew of phenomenal FREE (yes, free) resources.  From world class office space overlooking the Boston Harbor and skyline (see below photo for the view from my desk), to professional legal advice and access to the Northeast's brightest entrepreneurs, MassChallenge is a bootstrapped startup's dream!  After three months of seminars and workshops preparing teams to pitch and grow their businesses, finalists will compete for $1M, distributed as grants to top performing companies.  If this isn't enough, do you want to hear the best part of all?  There are absolutely no strings attached!  As an independent not-for-profit, MassChallenge is solely motivated to support and strengthen entrepreneurs.  By investing in innovation and entrepreneurship, MassChallenge is defining the next generation of economic growth engines, which is one of the reasons the program has been backed by both Massachusetts Governor Deval Patrick and Boston Mayor Thomas M. Menino.  The hope is that this program will attract new, innovative companies to the Boston area.  Well, I've gotta say it's working! 

Yesterday's orientation kicked off the program with a bang.  After enthusiastic presentations by the program's founders, finalist teams got a chance to meet each other and get acquainted with our new home.  Set on the 14th floor of the beautiful Fan Pier building, the space is a massive 22,000 sqft layout of cubicles, conference rooms and the world's longest continuous whiteboard painted on the perimeter of all interior walls (joking aside, MassChallenge is actually applying to The Guiness Book to take this prize).  There's even a gameroom, complete with pool, pingpong and foosball and a full kitchen stocked with free beer (courtesy of The Boston Beer Company) -- what more could a startup ask for??  The night capped off with the first of many networking events to take place in the Fan Pier building over the next few months.  In attendence were some of Boston's premier entrepreneurs, investors, executives, media, lawyers -- a great chance to make new connections and learn from the best.  A perfect way to kick things off!

I've been beyond impressed by what Boston has to offer startups -- a powerful ecosystem of universities, a network of strong companies, a pool of young/educated talent and a vibrant city backdrop.  An ideal hub for innovation, MassChallenge is catalyzing positive change and putting Boston on the entrepreneurial map.  As one of only a few teams from California, many people asked me how Boston compares to Silicon Valley as a hub for innovation.  For me, innovation is more about the people than the place.  Although I will have a better sense for this three months from now, of the people I met, Boston is right up there in terms of hungry, innovative, intellectually curious minds.  I'm looking forward to immersing myself further in both communities and will try to have a clearer answer in 3 months.

Until then, it's time to build 111 successful businesses.  Look out for big things to come from MassChallenge!

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San Francisco is a unique spot.  From retro Haight Ashbury to flamboyant Castro to hipster Mission, this city knows how to embrace weird.  As accustomed as I've become to the wonders of such diversity, I find I can still be caught off guard.  During a recent jog up and down the hilly streets, I saw something that made me do a double-take.  Goats?  In the middle of the city??  Yes.  One can't help but feel farm animals in the middle of a metropolis is strange, even for a town that encourages oddity.  What on earth could they be doing here?

Upon further investigation, I found these goats had a purpose: to clear the land of brush and weeds.  They were part of a SF-based company, called City Grazing.  This company touts goat grazing as an environmentally friendly alternative to mowing, burning or herbicides.  Further, the company claims its goats can cover large areas in a shorter period of time than most manpower at a rate of 1/2 acre per 8 hour day (50 goats).  Plus, they're cheaper than manual labor, are chemical-free and are popular with parents and children.  Even the critter's droppings are in demand!

When I got back from my run, I got on the computer and discovered San Fran is not alone in its love for goats!  There's Rent-a-Ruminant in Seattle, Hire-a-Goat in San Diego, Goatmowers in Grand Rapids.  You may not believe it, but there's even a search engine specifically dedicated to goat rentals, called Goat Finder at www.goatfinder.com!  Who knew this was such a lucrative business!  WIRED Magazine covered the Rent-a-Goat concept a couple years back with this video:

Hopefully I taught you something new today, or at least made you chuckle.  For those of you who can't stand mowing your lawn, now there's no excuse.  You can rent a four legged weed eating machine to do the job for you!

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Today, Rentcycle announces its nomination to Entrepreneur Magazine’s annual list of “100 Brilliant Companies” for 2010.  Hitting newsstands today, the cover story for the June 2010 issue highlights “brilliant” companies in categories ranging from mobile tech to green business.

In all, 10 fast-growing categories were identified as bringing “jaw-dropping ingenuity to the table.”  Value was recognized as a key category, especially during tight economic times.  Within this category, Rentcycle was selected as a “company to watch” since the company helps penny-pinching consumers save money renting their favorite things at a fraction of the cost of buying.  To date, the marketplace hosts more than 30,000 rental businesses which can be discovered in cities and towns across the United States.

“We are beside ourselves with excitement that Entrepreneur Magazine has included Rentcycle on their list of the most brilliant business ideas of 2010,” shares Tim Hyer, Founder and CEO of Rentcycle.  “To be in the company of startups we admire like Groupon and BillShrink is a huge honor and we are pleased to see further validation behind the online rental concept.”

Earlier this year, the newly launched Rentcycle marketplace debuted with 30,000 rental stores from the top 350 cities across the United States.  Here, consumers are able to get information about rental businesses ranging from luxury goods to baby equipment.  The hope is that a central rental search engine will enlighten consumers by opening their eyes to the variety of goods they can rent versus buy.  Did you know you could rent a piano?  How ‘bout an expensive designer handbag or dress like those you see on the red carpet?  You’ll be shocked to learn you can rent a living Christmas tree each year or even a temporary pet dog.  Now there’s a place to locate all these things.

The online version of the Entrepreneur magazine June cover story, “Entrepreneur’s Annual 100 Brilliant Ideas,” can be read at http://www.entrepreneur.com/magazine/entrepreneur/2010/june/206722-2.html.>

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No more Dharma Initiative.  No more black smoke.  No more flashbacks (or flash sideways or flash forwards, for that matter).  Last night, over 13 million viewers tuned in to say goodbye to Jack, Locke, Kate, Sawyer and the other castaways we’ve grown to love during the past six years.  Although the 2.5 hour series finale over-delivered in many ways and is now eligible for Emmy nominations, many fanatics refuse to come to terms with “the end” in what has been dubbed post-Lost depression.

In an effort to help these diehard fans cope with the finale, I spent some time researching all of the Lost-related items you can rent.  Even though the series is over, who says you can’t surround yourself with the comforts of the show?  Here are a few rentable items that can cure even the most island-sick hearts:

• Become a castaway by renting your very own deserted island!
• Need transportation?  Rent a sailboat, submarine, helicopter or passenger jet.
• Can’t communicate?  Rent some walkie-talkies.  
• Nothing to wear?  Rent an authentic Dharma jumpsuit.
• Nostalgic for Dharmaville?  Rent a vintage VW wagon.
• Miss the Smoke Monster?  Rent a smoke machine.
• Need an island cocktail?  Rent a tikki bar.
• If all else fails, you can always rent the DVDs!

See you in another life, brotha.

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Did you know May is national bike month?  What better way to welcome spring and summer than on a bicycle!  Whether you’re an avid cyclist or a casual beach cruiser, bipedal locomotion is good old-fashioned fun.  Whizzing ‘round town on a bike will instantly clear your mind and is a great way to see the outdoors.  Plus, it’s one of those life pleasures that bring you right back to childhood.

Although you can’t act like a child at work, you can certainly relive the experience during the commute.  Tomorrow is bike-to-work day, held annually on the third Friday of May across the United States and Canada.  Some cities, like San Francisco celebrated early, but there’s never a wrong time to bike-to-work.  It’s a healthy, safe and green alternative to driving.  Be sure to check out events in your city.

If you don’t own a bicycle, check out Rentcycle for places to rent in your area.  And don't worry if you haven't oiled those chains in awhile.  As the expression goes, “it’s like riding a bike!”

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During the Q&A portion of a recent startup event, I was asked whether Rentcycle could be used to "rent a monkey."  This question brought laughter to the audience and caught me off-guard.  As soon as I got home, I Googled "rent a monkey," only to discover a viral online hoax that promised the ability to rent a monkey for a week.  If you're bored, the video is pretty funny.  At first, I dismissed the whole thing as a joke.  But scrolling further down the results page led me to find you actually CAN rent a monkey—professionally trained monkeys with handlers for children's birthday parties.  I soon learned monkey rentals are the tip of the iceberg for a new global trend—pet rentals—a topic that's been met with much controversy in the U.S.

Pet rentals have been around for years, particularly in Asia.  Korea and Japan are famous for their cat cafés, local coffee shops where patrons pay a fee to cuddle with kittens while enjoying their daily cup-a-joe.  An article in Marie Claire states, "The cat cafés have become so popular that more than 150 businesses have sprung up to offer animals for hire—ferrets, turtles, squirrels, monkeys—on an hourly, weekly, or even monthly basis, if you want to bring the critter home."  Dogs have been predictably popular, as evidenced by Tokyo dog rental business, Perro Moco.  Here, busy professionals living in the cramped city of Tokyo can spend a few hours or a weekend with a furry friend of their choice.

Temporary pet sharing seems to benefit both sides of the equation.  Humans get companionship without the long-term responsibility and daily hassles associated with ownership.  In turn, pets get the love and attention they seek.  Since most pets are rescued from pounds, shelters or abandoned homes, they get a new lease on life, along with some much needed care.

This was precisely the motivation behind a U.S.-based company, FlexPetz which introduced dog rentals to cities across America.  Despite annual fees of about $1,500 per year, the concept was extremely popular—there was even a waiting list to get selected!  FlexPetz made the whole process very convenient—dogs were delivered groomed with pre-packaged meals; owners didn’t need to worry about veterinary bills or buying lots of toys.  For obvious reasons, the service was perfect for people who travel a lot, people who live in places that don’t allow pets, and people who want to test if they’re ready for the commitment of owning an animal.  Even nursing homes were great candidates for the pet rental service, with weekly scheduled dog visits for residents.

Although this arrangement sounds ideal, FlexPetz didn’t go over so well in other cities, like London and Boston.  Here, lawmakers and activists took action against pet rental companies, citing the practice as “unethical.”  They argued services like FlexPetz promoted the idea of “disposable pets.”  Activists from PETA and the ASPCA also got involved, arguing dog renting provides unstable environments for the animals.  Since they’re pack animals, the ASPCA argues an inconsistent lifestyle like this can be psychologically traumatizing for the dogs.  As one PETA rep stated, "This business exists to make money at the psychological expense of the animal.  Besides the possibility of emotional scarring from being bounced from owner to owner, there are concerns about the rental dogs as they age—where do they go when their shelf life expires?"  After only a year in business, FlexPetz was forced to shut its doors in 2008, in response to the backlash.

I’m not quite sure where I stand in this debate.  I certainly agree with The Humane Society that "animals are not DVDs," but feel, if handled appropriately, there's an opportunity for some kind of solution when it comes to temporary pet sharing.  A dog owner myself, of course I’m a proponent of animal rights and the ethical treatment of our four-legged friends.  However, the rigorous screening process (background checks, matching process, in-home interviews, trial sessions) practiced by FlexPetz eliminated many of these concerns for me.  On top of this, the FlexPetz dogs were rescued from pounds and would have otherwise been euthanized.  Seemed these dogs got a chance at a happy life while the people (who were willing to sit for months on a waitlist and spend upwards of $1,500 per year) got an opportunity for companionship.  It can be argued that, in many ways, the decision to rent a dog is much more responsible than the decision to own a dog since it acknowledges the time commitment, responsibility and investment of ownership.  Although pet renting is controversial, I can’t help but feel the world would be a better place with more opportunities to interact with puppies and kittens :-) 

Do you think there's an appropriate and responsible way to handle pet sharing?  Would love to hear what you think.

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It’s a big week for this small startup.  As of Monday, Rentcycle doubled in size, growing from one to two full-time employees.  Don’t worry, the company dog is still involved—it’s just taken a back seat to Rentcycle’s latest addition.

Meet Ludo Goarin, Rentcycle’s newly dubbed Co-Founder and Chief Technical Officer.  For the past eight years, Ludo has run his own web development company, OrangeSites, where he and his team have helped hundreds of clients build strong, sustainable online presences by leveraging online technologies, web design and SEO.  A man of many talents, Ludo is more than just a coder.  He also brings sales, marketing, business and design experience to the table, making him a key voice when it comes to product strategy and company vision. 

After eight years of building websites for other early-stage companies, Ludo is ready to take the plunge and be part of his own startup dream.  He believes in the business model for Rentcycle and is eager to create a superior product.  One of Ludo’s best qualities is his focus on the user.  His plan is to engineer a solution that solves a real need for both businesses and consumers.

Ludo brings a sense of worldliness to the Rentcycle team as well.  Hailing from France, Ludo attended ESSCA where he received degrees in International Marketing, Languages, as well as a Masters in Business Administration.  Research has shown Europe is even more progressive than the U.S. when it comes to renting as a form of commerce, so this French connection might come in handy down the road ☺

Ludo lives with his wife in San Francisco.  He takes advantage of the outdoor playground of Northern California as a basketball player, scuba diver and kite surfer.  He even finds time for the occasional fishing trip and he now rents all of his equipment!

Welcome, Ludo.  Rentcycle couldn’t be more thrilled to have you on board!

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