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Derk's avatar

Great analysis on the rent economy. Just reading Economist's leader on the economy's changing rules and the low inflation rates. I didn't read a direct link with the 'sharing economy' in it but it could also explain why inflation rates are low. When consumers don't buy products but rent instead it could curb inflation rates as a result.

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Azeem Azhar's avatar

That could be true. Also, a function of the inflation-price baskets being hopeless and unconnected with the heterogeneity of people's purchasing patterns.

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Natalia Popova's avatar

Fantastic to read a wider view of the rental economy. I’m a millennial and more than happy to rent absolutely everything. Stuff and status never featured for me, but I see how my USSR brought up parents still see it as very much a thing. Very excited to see companies like Grover (IT/tech) expanding and would love to rent white goods (Washing machines in particular). As to changes to economy - now that right to repair is a thing and there’s more focus on sustainability and resource management, wouldn’t that have to happen anyway?

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Azeem Azhar's avatar

One of the shifts is in our sense of personal values. Do we continue to take pride in "buying the latest"? There are some signs ownership-status-value can diminish in richer countries. Less clear about emerging economies.

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Natalia Popova's avatar

Purely based on my USSR parents’s attitude, and they’ve lived in the EU since ‘94, there’s very much a “we didn’t have all this stuff growing up so we’re entitled to it now”. Although now that Daimler (my dad is obsessed with Mercedes) announced that they’re no longer designing combustion engines, he’s suddenly a lot more onboard with EVs. So it’s perhaps a vicious cycle in that brands that were always desired by emerging economies as luxury/status are moving along and therefore the people may look at them differently...

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Azeem Azhar's avatar

What confers status is not absolute, as you point out.

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Natalia Popova's avatar

After thought - I run a little community service, a rental party box for local kids, crockery, cutlery, decoration etc. I’m trying to reach the segment of my community who aren’t all that eco friendly, and to them I’m selling it as a convenience. Save time, save money. Then, I include a little note in the box telling them how many single use items they’ve saved from landfill. Like a reverse nudge, almost.

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