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Why Outdoorsy's Business Model is so successful?

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Outdoorsy’s Company Overview


Outdoorsy is a pioneering online platform that connects RV owners with adventurers who want to experience the freedom and flexibility of road travel without the cost and hassle of owning their own vehicle. Founded in 2015, Outdoorsy has grown to become a leading marketplace for RV rentals, enabling users to explore nature and camp in comfort. The company is headquartered in Austin, Texas, and operates across the United States, Canada, Australia, and parts of Europe. Outdoorsy's mission is to mobilize the 18 million idle RVs around the world, making outdoor experiences more accessible to everyone and promoting sustainable travel. Business Model: Outdoorsy operates under a peer-to-peer business model, acting as an intermediary between RV owners and renters. The platform allows RV owners to list their vehicles for rent, set their prices, and manage their bookings. On the other hand, it provides renters with a wide range of RVs to choose from, detailed listings with photos and reviews, and secure payment options. Outdoorsy also offers additional services like insurance coverage and 24/7 roadside assistance to ensure a safe and comfortable experience for its users. Revenue Model: Outdoorsy generates revenue through a commission-based model. The company charges both the RV owners and the renters a service fee for each transaction. The fee for owners ranges from 20-25% of the rental price, depending on the insurance plan chosen, while renters are charged a 5-15% service fee based on the total rental cost. Outdoorsy also earns income from its add-on services, such as premium insurance coverage and roadside assistance. In addition, the company has partnered with various businesses in the travel and outdoor industry, offering products and services like camping gear and trip planning, which provide additional streams of revenue.

https://www.outdoorsy.com/

Country: California

Foundations date: 2014

Type: Private

Sector: Consumer Services

Categories: Travel


Outdoorsy’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: provides access, fun/entertainment, design/aesthetics

Functional: simplifies, connects, variety, informs


Outdoorsy’s Related Competitors



Outdoorsy’s Business Operations


Access over ownership:

The accessibility over ownership model is a business concept that allows consumers to utilize a product without owning it. Everything serves a purpose. As a result, consumers all across the Western world are demanding more value from their goods and services, and they are rethinking their relationship with stuff.' Furthermore, with thriving online communities embracing the idea of access above ownership, the internet is developing as a robust platform for sharing models to expand and prosper.

Collaborative consumption:

Collaborative Consumption (CC) may be described as a collection of resource circulation systems that allow consumers to both get and supply valued resources or services, either temporarily or permanently, via direct contact with other customers or through the use of a mediator.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Fractional ownership:

Fractional ownership is a popular investment arrangement for high-value assets like airplanes, automobiles for racing, and vacation homes. The main distinction between fractional ownership and timeshare ownership is that investors own a portion of the property rather than time units. Thus, if the asset's value rises, the value of the investment's shares increases as well.

Mobile first behavior:

It is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices. The term is “mobile first,” and it is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Peer to Peer (P2P):

A peer-to-peer, or P2P, service is a decentralized platform that enables two people to communicate directly, without the need for a third-party intermediary or the usage of a corporation providing a product or service. For example, the buyer and seller do business now via the P2P service. Certain peer-to-peer (P2P) services do not include economic transactions such as buying and selling but instead connect people to collaborate on projects, exchange information, and communicate without the need for an intermediary. The organizing business provides a point of contact for these people, often an online database and communication service. The renting of personal goods, the supply of particular products or services, or the exchange of knowledge and experiences are all examples of transactions.

Reputation builders:

Reputation builders is an innovative software platform that enables companies to create, collect, and manage positive internet reviews. It was a pioneer in the utilization of user-generated material. The website services are provided for free to users, who supply the majority of the content, and the websites of related businesses are monetized via advertising.

Sharing economy:

The sharing economy eliminates the necessity for individual asset ownership. The phrase sharing economy is an umbrella word that encompasses various definitions and is often used to refer to economic and social activity that involves online transactions. Originally coined by the open-source community to refer to peer-to-peer sharing of access to goods and services, the term is now occasionally used more broadly to refer to any sales transaction conducted via online marketplaces, including those that are business to consumer (B2C) than peer-to-peer.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Two-sided market:

Two-sided marketplaces, also called two-sided networks, are commercial platforms featuring two different user groups that mutually profit from the web. A multi-sided platform is an organization that generates value mainly via the facilitation of direct contacts between two (or more) distinct kinds of connected consumers (MSP). A two-sided market enables interactions between many interdependent consumer groups. The platform's value grows as more groups or individual members of each group use it. For example, eBay is a marketplace that links buyers and sellers. Google connects advertising and searchers. Social media platforms such as Twitter and Facebook are also bidirectional, linking consumers and marketers.

Rent instead of buy:

Services that do not need the product to be purchased but rather rent it for the economic benefit of requiring less money to access the commodity. When you rent, you assume less obligation since most of the burden is placed on the owner's shoulders. There is no debt; you are just responsible for the monthly rent. When renting, you have more flexibility by signing a six-month or one-year lease. This implies that you will be confined to that location for at least that period. When your lease term expires, you have the option of switching to another product or renewing your lease.

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