The concept of sharing, or rental economy, is turning from sublime to ridiculous. There are companies sharing workspace to reduce initial capital investments and help promote innovation thr­ough shared ideas. On the other ext­reme, you can hire a pet—it cuts the ted­ium of looking after a puppy or a meow fulltime.

Estimates vary on the global size of the sharing economy. Brookings in a study released last year projected it will reach $335 billion by 2025. Retail market exp­erts say that apart from hospitality and real estate, rental economy for items such as textiles, furniture and luxury goods in India is insignificant.

“This practice has proven to be beneficial for consumers because of lower price with reduced expense and maintenance, which will drive the rental market size,” says Ankur Pahwa, partner and national leader, e-commerce and consumer internet, EY India.

So, startups are looking to find a model that works the best for them. Right from hiring beds and linen during family get-togethers or office parties, the rental business platform is offering many solutions. “There is of course the fact that rental business cuts the need for high overheads and helps set off immediate cash flow, without having to wait for too long, unlike in conventional business models,” says Abheek Barua, chief economist, HDFC Bank. “However, being in a platform-based service doesn’t guarantee a ready business. For every unicorn (tech startups) there are hundreds of businesses going bust.”

Fortunately, while the failure rate is high, it does not involve a huge hit on your capital or income. Rental business is gaining momentum as people can rent what they covet at a nominal cost, whether it’s a product or a lifestyle change. The captivated category is, not surprisingly, from the aspirational 20-35 age group.

Nirupama Soundararajan, research head at Pahle India Foundation, says the youth’s aspirations are growing faster than their income. “For people with those kinds of asp­irations, incomes don’t go at the same level. If that is the case, then rentals make sense, when you look at the luxury aspect of it,” says Soundararajan. Rental is an easy way to get that feel-good factor just for a day or two on an important occasion. Further, in keeping with an increasing shift among people not to invest in a property, largely due to lifestyle changes and desire to travel, there is a tendency to keep things light. That means no investment in things that can’t be discarded quickly, as their values depreciate fast.

Players like Rent the Runway, which deals in rental of luxury products, feed on these aspirations, says Anurag Mathur, partner, PwC India. “Many of these bra­nded goods are not available in India, unlike in China and the West. The aspirations to have high-end goods are one of the reasons why the rental market might grow more.”

Another factor driving the trend is that taboo around renting clothes or furniture has reduced. Secondly, it is the availability of players willing to rent out luxury goods. They promise products as good as new. Arvind K. Singhal, chairman and managing director of Technopak, says entry of big players, both Indian and global, is set to usher more changes. “Which is why companies like Flipkart are looking at this segment that promises great opportunity,” he says. Companies like OLX and Quikr are alr­eady in high demand—acquiring your old refrigerator, refurbishing it, and selling or renting it out. That is where margins and opportunities promise to be good. The rent economy is here to stay, and grow.