Exploring the Past, Present and Future of Peer-to-Peer, Rental and Sharing Economies: A UK Perspective

Let’s say you need to use a table saw to complete a home improvement project or make that thing that’s been an idea rolling around your head. Where and how do you get it? If you’re in the UK, the answer increasingly would be something like London’s The Library Of Things or one of its antecedents, a localised resource for simply renting a wide range of tools, coupled with ideas on what to use them for. There are more than 100 such libraries, 22 in London alone! This makes for a much more economical, enjoyable, engaged and ecologically lighter way to do things. 

While Peer-to-Peer rental and other such permutations of non-ownership based product usage have become increasingly common currency in various parts of the world, we believe that the UK as a hub for sharing & renting economy innovation. That’s due to a number of factors, in some ways the core being the population having a forward thinking mindset when it comes to not needing to own things that have been typically thought of as necessary to do so. 

At the moment there are two parallel movements happening, each making strides in various ways partly thanks to the increasing availability of enabling software, vendors and platforms are providing: Grassroots community lending and commercial P2P Rental platforms. 

In this article we intend to take a closer look at how we got here, and where we see going from here forward. In the end, we’d love to hear from you whether you strongly agree or disagree, or have a nuanced perspective somewhere in between. 

Sharing and Lending’s Deep Roots 

Now, these approaches, as modern and mobile technology enabled as it seems today, are not a new thing. If anything, the advent of the linear economy de-normalised what had been a regularly occurring, organic thing.

Long before that, libraries in the US and elsewhere lent things like tennis rackets (1894) and paintings (1904), the practice of the latter continuing to this day. The first, and for decades only formal tool lending library was created in 1943 in Grosse Point, Michigan. And, of course, informal community sharing and lending has been around as long as human communities have.

In more recent times, the UK embraced a range of  pre-internet sharing systems. LETS (Local Exchange Trading Systems) began in 1985, and timebanks in 1998, each a semi-formalised system of bartering. 

The Internet Changes Everything

With the dawning of the internet age, the scale, breadth and resources to enable the sharing (or renting or selling on) of items that would otherwise previously have been disposed of, or sat idle, increased to a significant degree. While it wasn’t quite to the point of being the circular economy of today, eBay and Freecycle leveraged people’s increasing connectivity beyond their local community, newspapers and such, enabling them to have greater autonomy in how, where, and to whom their items went to. 

Taking a step closer to where we are today, the Web 2.0 era, and with it the concept of a “platform economy” began to normalise connecting buyers and sellers in a variety of realms, generating new business opportunities. Beyond that, Couchsurfing emerged in 2003, another example of how to make different use of such capabilities, enabling people to share space with travellers, a vibrant community growing around it, to encompass a variety of real world social gatherings. Some would say this was a first proof of concept for digital enabled trust-based sharing. 

The Emergence of the Modern P2P/Rental Ecosystem (2010-2015)

All these factors began to coalesce into something closer to what we know today between 2010-15, the first wave of the sharing economy. While AirBnB and Uber are oft cited as the ones to popularise and normalise P2P access models, people getting comfortable with renting their home, rooms, car or transit in it, they aren’t to our mind truly circular, at times raising more questions than answering them. 

So instead we turn our attention to the homegrown, pioneering companies and initiatives of the UK:

Whipcar was arguably the world’s first peer-to-peer car hire company, in 2010. Like many first to markets, its time was perhaps slightly too early, and it lasted three years in total. However, the idea was seeded, and several variants on the theme rose in quick succession after that. Ridelink launched in 2014 with much more funding, but failed within 6 months. easyCar Club and others ran into insurance hurdles that ultimately derailed them. 

However, 2015-16 saw the launch of numerous companies that seemed to have learned from their predecessors and are still in business today, such as Hiyacar, Turo, and Getaround.

At the same time others were using similar such technology, coupled with an emphasis on community, to create initiatives that would dematerialise people’s day to day needs and overall elevate the sustainability of the regions they serve. 

Let’s look at two such initiatives: Library Of Things London and Share Bristol.

Library of Things (London)

The Library of Things was founded by university friends Emma Shaw and Bex Trevalyan, who were inspired by product "libraries" like Berlin’s Leila and the Toronto Tool Library. As Trevalyan explained, they were thinking about big questions around sustainability while also being practically students in London, which meant living in small homes, without much spare space or disposable income. They occasionally needed things like sewing machines, drills, and sound systems but didn't need to own them.

They started as a grassroots experiment in 2014, testing sharing with their community in South London. The first formal Library of Things location opened in 2015, based out of Upper Norwood Library in Crystal Palace. It operates as a social enterprise, allowing members to rent tools, appliances, and other household items for a small fee, with all funds going back to the library's upkeep and discounted rates offered to those on low incomes. The model has since been replicated widely, with the founders helping other cities across the UK and Europe set up their own sharing library networks. 

Interestingly, Edinburgh Tool Library’s path mirrored Library Of Things, inspired by the same Toronto project.  They got charitable status in 2014, then tested the waters in a converted police box in 2015. It’s said theirs was the first tool library in the UK. 

Share Bristol

Share Bristol is Bristol's equivalent: A community-run Library of Things operating as a charity. They opened their first location in Kingswood in mid-2021. Growth has been driven largely by crowdfunding and community donations, and the charity expanded to a second site in Bedminster on East Street, with funding awarded from Bristol City Council and the West of England Combined Authority in July 2024. By their fourth year they had three Library of Things locations, over 1,000 members, more than 1,800 items available to borrow, and had facilitated over 10,000 borrows. Members pay an annual fee (with a concessionary rate available) and can then borrow anything from tools to camping gear to kitchen appliances for free throughout the year.

The Ecosystem Matures (2015-2020)

The latter half of the 2010s saw a maturing of the ecosystem, one of the catalysts being Sharing Economy UK. 

Sharing Economy UK was launched in March 2015 following a government-commissioned independent review written by serial entrepreneur Debbie Wosskow OBE, founder of Love Home Swap. It was established to represent sharing economy businesses in the UK, with one of the government's recommendations being to have a single point of contact to speak for the industry. 

The organisation quickly grew its membership, encompassing major platforms like Airbnb and Etsy as well as innovative startups. A notable early achievement was securing the "Sharing Economy Allowance" tax break announced in the Spring 2016 budget. 

Industry first TrustSeal Initiative

Since 2016, Sharing Economy UK began awarding a "TrustSeal" to businesses meeting six performance criteria. Described as the world's first trust kitemark for the industry, the TrustSeal was an independently awarded badge that gave consumers confidence that each platform upheld good standards in key areas including digital identity, insurance, and customer help and support. The initiative attracted international interest, with similar bodies elsewhere in the world looking to adopt the processes SEUK had developed. While it hasn’t ultimately persisted, it set an inspiring precedent.

The Commercial P2P Platforms Evolve, and Circular Minded Rental Emerges

During this time, an evolution and expansion of the scope of commercial P2P platforms began to take place. 

Fat Llama managed to do two things simultaneously: Secure a built-in insurance guarantee, covering items up to £25,000 per rental, paired with identity verification and risk-profiling technology. This addressed the fundamental trust problem that had hamstrung earlier sharing-economy platforms. The platform attracted a wide range of categories, from cameras and DJ equipment to designer handbags and hot tubs, with a particularly strong following among creative professionals like photographers and musicians.

Fat Llama continued to grow, weathering Covid and reaching profitability in 2021, and subsequently acquired by Nordic company Hygglo. 

At this time, a number of sector specific P2P platforms began to emerge, beyond tools and equipment: Clothing, parking, boats & outdoor gear, and skills/space share. 

Concurrently, several companies and categories began to emerge that offered an evolved, circular minded take on rental, reducing the waste and cost of items needed only for a brief period of time. Examples include:

Hirestreet, launched in 2018, holds its own stock of high-street and occasion wear, primarily dresses for events and weddings, and rents them directly to customers. Unlike peer-to-peer platforms, the company is the sole owner and manager of its inventory, which it sources through partnerships with brands like ASOS, Boohoo, and M&S. Brand partnerships of a wide range of categories have since increasingly emerged as a way for them to reach a different segment of their market, building loyalty.

Bundlee, founded in 2018, is described as the UK's first rental subscription service for childrenswear. Founded by Eve Kekeh, it owns its own stock of baby and toddler clothes, including partnered brands like Patagonia, MORI, and Mini Rodini, and loans bundles to families, who simply return them when their child grew out of them. 

Whirli, likewise founded in 2018, applies the same logic to toys. Founded by Nigel Phan, it purchases toys directly from manufacturers and rents them to families via a subscription and token system. Parents can return a toy when a child loses interest and swap it for something else. 

The Community Library Movement Spreads

Simultaneous to this, the community library movement spread widely across the UK, due to a mix of member coordination, government support, and third sector organisation infrastructure. 

Benthyg Cymru Network connects the dots in Wales

Benthyg Cymru, "borrowing" in Welsh, emerged during the 2010s as a nationally coordinated network of Libraries of Things operating across Wales. 

Unlike isolated local initiatives, Benthyg was distinctive in its network approach, with member organisations actively sharing knowledge, best practices, and operational experience with one another. This collaborative model helped newer hubs learn from established ones, reducing the trial-and-error burden that often hampers grassroots projects. 

The network benefited from meaningful support from the Welsh Government, which had positioned the circular economy as a central pillar of its sustainability agenda. Wales had already built a strong reputation for recycling policy, and backing community sharing initiatives was a natural extension of that commitment, lending the Benthyg network both credibility and financial grounding.

Share and Repair Network, Scotland

In Scotland, the Share and Repair Network developed under the umbrella of Circular Communities Scotland, an organisation dedicated to connecting and supporting community-led circular economy projects across the country. The network drew particular strength from partnerships with well-established Edinburgh-based initiatives: the Edinburgh Tool Library, one of the UK's most prominent tool-lending organisations, and the Remakery, a community repair and reuse hub.

Together, these anchoring partners helped model what a functional share-and-repair ecosystem could look like in practice. Funding from Zero Waste Scotland and the Scottish Government provided the financial infrastructure needed to grow and sustain the network, reflecting a broader policy environment in Scotland that has consistently prioritised waste reduction and resource sharing as key environmental goals.

Lend and Mend Hubs Connect Tool Libraries To The Broader Public

Launched in 2023, the Lend and Mend Hubs initiative brought Libraries of Things into nine Scottish public libraries, marking a significant moment in the mainstreaming of the sharing economy model within established public institutions. 

The project was made possible by a £1 million Circular Future Fund contributed by the John Lewis Partnership, signalling growing interest from the private sector in supporting circular economy infrastructure. The hubs were managed by the Scottish Library and Information Council (SLIC), which oversees the development of library services across Scotland. 

By embedding sharing and repair facilities within public libraries - trusted, accessible, and already embedded in communities - the initiative lowered the barrier to participation considerably, reaching people who might never have sought out a standalone Library of Things.

Ethical Consumer Directory Illuminates the breadth and depth of UK Libraries of Things

The scale of the Libraries of Things movement across the UK is perhaps best captured by the Ethical Consumer directory, which has documented over 100 such initiatives operating around the country. This catalogue serves as both a testament to the remarkable grassroots growth of the sector and a practical resource for people looking to access or support their nearest hub. The breadth of organisations listed, ranging from urban tool libraries to rural community lending schemes, illustrates how the model has adapted to widely varying local contexts, needs, and funding environments, coalescing into a genuinely national, if decentralised, movement.

The Pandemic Pivot (2022-2022)

The pandemic period spurred many shifts simultaneously:

Overall, there was an increase in and evolution of mobile technology, enabling interactions at a distance. 

Accommodation rentals such as AirBnB saw a steep decline. Tool and equipment rentals saw a huge surge due to a broad interest in DIY pursuits, given the additional time and space to do so. Community libraries, resilient and flexible as ever, found ways to adapt to the changing landscape, with varying success. 

Across all this was a shift in consumer mindsets. Given the economically unstable times, people’s cost-of-living concerns accelerated interest in rental/sharing options. Environmental awareness saw an increase in those beyond those already inclined. And there was, naturally, a greater interest in community - being a part of, connecting to and activating it in a variety of ways. 

All of these factors meant the emergence of flexible consumption becoming a “new normal.” Both P2P renting and sharing saw a rise, with many people feeling inspired to creative ventures and initiatives supporting this. 

Today’s Landscape (2023-2026)

From our vantage point, the period following the Covid era has been one of massive upheaval, we’d say stormy overall. While there was a tremendous amount of community and values led energy, action, initiatives and endeavours started during that time, many of them have stopped due lack of funding, time, energy or people choosing to return to their jobs once things normalised. 

However, the idea, reality and ease of renting things beyond the traditional categories has meant an ongoing interest in and an increase of libraries of things. With that has been a significant, ongoing increase in software for and platforms to help run such endeavours. Especially in the white label SaaS model, many are looking to service or provide tools for this sector. 

At the same time, larger players that began and got established previous to Covid have seen ongoing success and even expansion. Fat Llama, established in 2016, is one such business, which went on to be acquired by Nordic company Hygglo. Hiyacar, active since 2014, is positioned to expand even further, given US company Zipcar’s exit from the UK last year. Fashion rental company HURR Collective, begun in 2018, has ridden the growing wave of sustainability minded consumer behaviour since Covid. 

Since the transformative Covid era, several new players have entered the market, their approach a mix of defining a need, finding brand partners to strengthen and support their offering, and making use of or creating circular minded software to help best optimise the operations of these new era ventures. Some standout examples include Baboodle, Loanhood and Tern. 

The Technical Infrastructure Enabling These Platforms

While there is a great deal of humanity, community and physicality to these businesses and community initiatives, it’s the technology underpinning it that is helping accelerate and elevate the impact and longevity of such endeavours. 

Let’s look into a few key examples that have emerged in 2015 and onwards to give you a sense of how we believe that’s so. After having read them, we’d like to know, what other ways do you see technology having a role/positive impact?

One key aspect that has shifted in recent years is companies largely needing to craft from scratch their platform, and the software that runs their businesses from, whereas there are now a number of white label SAAS options emerging. 

We’ve included examples from around the world, the UK playing a significant role in this regard. 

Marketplace builders

Sharetribe and Yo!Rent are two examples that focus on helping entrepreneurs build their own marketplaces. In doing so, they allow such enterprises to focus on what and who they seek to serve, rather than needing the technical expertise to craft the infrastructure. 

Rental Management Software

Lendengine and myTurn focus on serving community lending libraries and organisational asset tracking. In doing so, two things happen: They enable libraries to focus on the human impact and community connecting, rather than the oft taxing minutiae of running such things sans technology. And for companies, it allows maximum utilisation of their internal resources, while minimising how much they need on hand. 

Sharefox and Booqable focus on the commercial rental business sector, encompassing the full spectrum of internal and customer facing aspects. Sharefox enables everything from vehicle to event rentals, whereas Booqable also encompasses website design in addition to things like barcode scanning. 

Social Enterprises/Community Models

Library of Things, as we mentioned above, operates as a social enterprise with physical locations across London providing self-service rental of household items through lockers in libraries and community centers. They, it should be noted, built their software to spec. The resultant use of technology has enabled their operations to more seamlessly work with their customer’s day and workflow. 

Peer-to-Peer Marketplaces

Lindrs, Rentzi, RentMyTool, and RentRooster all take the P2P marketplace concept mobile first, enabling fluidity and confidence in such exchanges, meeting people where they are. Each of them incorporate nuances applicable to the market and type of item being rented, from deposits to identity/trust verification, a local community/student serving orientation and in app messaging, among other things. 

Circular Commerce Add-ons

Perhaps the area most fertile with possibility for widening which businesses take the circular route, these tools enable existing linear businesses to incorporate circular aspects ad hoc, rather than needing to form a fully separate, new business. 

Supercycle does so with Shopify, the world’s most popular ecommerce platform. Companies can, on an item by item basis, enable products to be procured by customers on a rental, resale, subscription or membership basis. Especially intriguing is the ability for customers to trade in items, thus engendering loyalty on their end, and additional profit from the resale, rental etc of said item. 

Firmhouse intersects with Supercycle in regards to its Shopify focus, but diverges in that it enables Product As A Service (PaaS) try and buy, and company pay on account schemes as well. 

Where Next for UK Sharing?

While there are an abundance of aspects at play here, now and still to come, which will shape the future of the various permutations of sharing and rental endeavours discussed here, four trends stand out to us as key:

1: AI, clearly, is having and will continue to have a major impact on both ends of the equation: Both in how these platforms are built and operated, and how people discover and navigate such services. Will it democratise or dehumanise things? Only time will tell. 

2: Beyond that, we expect the continued growth and maturation of white label/SaaS tools for rental, sharing and circular models. Nascent sectors yet to be well served will start to be. Further, with the increasingly robust ecosystem of libraries of things, community-led rentals, we can see increasing development of tech to support them. The bottom line here is that circular minded companies and organisations will have less need to build bespoke platforms and software from scratch.

3: Political & business pushback on sustainability messaging, the so-called Trump Effect, has had some ventures being more cautious as to how they communicate about what they do, perhaps dampening the potential impact. 

4: Economic and cost of living challenges: Both a hindrance and opportunity. While it could certainly be said and seen that UK economic challenges and cost of living are putting pressure on many of these models, at the same time what they offer could also prove to be an opportunity to help. 

Tying it All Together 

Looking back through the origins and evolution of sharing and rental initiatives, platforms and companies, one thing becomes clear: technology’s increasingly important role. To be clear, we see it as an enabler - of greater scale, of more fluid operations behind the scenes, of reducing friction and increasing trust among customers. But technology in itself is not a solution. 

It takes a culture which has an open mindset, embracing post ownership options. Plus businesses and non-profits  innovatively and proactively using technology. With an ecosystem of developers adopting the same mindset in serving these kinds of businesses, the UK could lead in this realm for some time to come. 

Of course there is still a huge amount of learning and change needed to get circular approaches to truly change the default linear system, but as you’ve seen, there are many positives and lessons to be learned from looking back. 

Now that you’ve taken this journey with us, we’d like to know: Would you agree that the UK is a hub for sharing and renting economy innovation? We’d love to hear your thoughts, whether you strongly agree or disagree, or have a nuanced perspective somewhere in between. Drop us a line here to share.