The ‘Uber effect’ on boat rental - true utopia, or just the next El Dorado of the collaborative economy?

The emergence of numerous new peer-to-peer boat rental sites has reignited a heated debate at the heart of the French Nautical Industries Federation, the equivalent of the British Marine Federation in the UK. Currently this method of rental is not permitted for UK registered boats within British waters, however a handful of companies offer UK customers the chance to rent a boat in the Mediterranean using the peer to peer model.

In France, several companies have been growing in popularity in recent years. It has in turn highlighted certain grey areas, and some serious shortcomings previously disregarded or completely avoided by governing bodies and policy makers. What exactly is the responsibility of a skipper? What about boat sharing? Or static boat rental? Not least concerns surrounding obligatory safety equipment. Just like Uber and Airbnb, peer-to-peer boat rental is able to offer its services at rock bottom prices thanks to vague regulations and legal loopholes.

Peer-to-peer boat rental has in fact always existed. Whether a work colleague rents you his boat in St Tropez during the month of August, or via an advert in Yachting Magazine, on Ebay or Gumtree, it is the same concept. For an owner, renting out their boat to a client has been common practice for many years. Therefore the concept is not completely new. On the other hand, within the past 2 years websites entirely dedicated to boat rental have popped up all over the internet, covering the entire process, from the initial search for a boat, to requesting a quote, right up to making a booking and finalizing the contract. What are the prospects for these new online platforms and how might they impact the world of boating?

One of the aims of the French Nautical Industries Federation is to enable greater access to pleasure boating. This is of course made possible thanks to peer-to-peer boat rental! In reality it is very difficult for a professional to rent a boat for just a few hours. The cost of getting a boat ready, cleaning and the check-in process are all expensive and therefore it is only worthwhile for a fee of at least €600 or €700. However, there are no such constraints for private owners, who are not reimbursed but can as a result afford to provide a local service, with a single boat outing costing only €100 or €200 euros. Peer-to-peer rental makes boating more accessible and allows the industry to reach a much larger market of pleasure seekers who may in turn become the boat owners of the future!

However, in economic terms, is this type of rental, which is short-term, in small numbers, and extremely seasonal, really sufficient enough to support all of these new third party sites? It’s difficult to tell. All the more give that unlike the car or apartment rental market, boating is extremely restricted, and suffers greatly from seasonality. Only one or two sites will be able to stand out from the crowd and make their business profitable if they can attain a sufficient number of clients and bookings throughout the year.

In order to best respond to the needs of their clients and to offer a larger catalogue of boats, within the last year these peer-to-peer rental platforms have diversified to include professional renters. Better service, a greater number of boats and quicker response times… what’s not to like? It is often much simpler to get a comprehensive and reliable quote from a professional than from an unknown private owner. Indications suggest that on average more than 60% of boats on these platforms are from professional fleets. Surely there is therefore nothing to alarm sailors or supporters of the collaborative economy?

Up until now there have been no major issues. Almost all of the collaborative property and car rental sites have also incorporated offers from professionals. However, problems can arise with regards to the quality of listed renters. When an agency chooses its partner fleets, there can be a variety of different boats and renters each with questionable ratings. These sites undoubtedly offer an invaluable chance for smaller struggling operators to promote their boats to a whole new client base at very attractive prices. But when the moment finally arrives to step aboard your chosen boat, a deal which seemed great online can in reality be a total nightmare. It is important to watch out for offers that are just too good to be true!

The boat rental market is already very fragmented and confusing and these new platforms only complicate matters further. Therefore first time clients should ensure they read reviews left by other users very carefully or contact an advisor, who should be able to provide verified photos of the boat, copies of the marine insurance and certification of where the vessel is registered.

The French Nautical Industries Federation has also highlighted possible issues surrounding the responsibility of the owner in the case of boat sharing. Indeed, certain boat owners prefer to only rent out their boat if they can also be present on board. They are then paid for the rental of their boat and their service as a skipper. This option is only possible however if the owner has the necessary qualifications (for example Master 200) in order to welcome clients aboard and to be covered in the case of an accident. With regards to boat sharing, it is advisable look at specialist crew exchange websites which detail offers from every corner of the globe.

Overall, peer-to-peer boat rental seems to be an effective solution to target some of the latest challenges facing the nautical industry. Improved accessibility and the possibility of more short term rental puts pleasure boating within the grasp of a new generation of clients. Nonetheless this new trend must be closely monitored, especially for rental periods of several days and those further afield. Above all, the most important details should be made clearer, to ensure that customers can enjoy a stress free experience, and set sail safely and securely.

Victor Hugo once said “The sea is a place of both discipline and freedom. To lose discipline is to lose freedom.”

Nevertheless, the ‘uberisation’ of boating has allowed important questions to be asked regarding the nautical industry as a whole and its many forms, in particular the changing practices within the boating sector and the growing demands of its customers.