Is hire going digital?
2 March 2021
Perhaps it’s a trend that’s been accelerated by the pandemic and the huge growth in online ordering that we’re all now familiar with, but for whatever reason a number of digital platforms for online tool and equipment hire have appeared in the last few months.
Now, web-based tool and equipment hire services that aggregate offers from various suppliers aren’t new. I wrote about one of the first a decade or so ago. However, the most recent I’ve heard of is GetMyEquipment, initially serving the London area, and I was recently able to have an in-depth conversation about it with chief executive officer Stephen Lewin.
Having previously worked on large construction projects and offshore facilities in various countries, Stephen looked for a start-up opportunity and believes there is scope for a different kind of digital platform serving hire.
“Our aim is to bring people together in the same way that has happened in industries like hotels and airlines,” Stephen told me.
“We are targeting small to medium sized construction companies. They list the equipment they need for a project and then they click a button to request quotes. Details are sent to every supplier on the platform (www.getmyequipment.com) in the local area, who have an hour to respond with their prices and availability. Then the customer receives the quotes (pictured).
“Something I want to stress is that we do not want to create a race to the bottom on rates,” said Stephen. “Firstly, only the enquirer will see the prices quoted and, secondly, every customer is asked to rate the supplier in terms of delivery, service and quality of equipment, which future enquirers will see. So they can make their choice based on more factors than price alone.”
Customers offhire equipment via the website and GetMyEquipment takes a percentage of the transaction value from the supplier when completed. Signing up to the platform is free for both parties.
One of the issues that has concerned me with online ordering in the past is that it seems more suited for commodity items or for cases where the customer knows exactly what they want. What happens when someone needs advice and guidance?
“The platform has a messaging feature,” said Stephen. “We recognise that hire is a relationship industry and there can be many nuances to each transaction, from order processing to site details. And a customer can ask whether a certain element is included in the price or not, for example.”
On the GetMyEquipment platform, the customer knows who the hirer is and vice versa. They also see that company’s branding, along with their five-star site rating, to help build a stronger relationship.
“This differentiates us,” said Stephen. “Many other sites are ‘closed’ platforms where the customer does not know who they are specifically selecting. We allow the suppliers’ brands to shine and build credibility. We also think this will make more companies sign up.”
But what’s to stop a customer in future bypassing the online platform and dealing directly with the hirer, once he or she knows their details?
“You might equally ask why people don’t bypass the hotel and airline booking sites,” said Stephen. “The answer is that the experience of using these platforms far outweighs the bypass opportunity.
“One issue for a customer is the hassle that can be involved in, first, finding a supplier and, second, wondering whether they can trust them. And there can be a huge account-opening process to go through: endless emails, supplying ID documentation and so on. So the contractor often ends up using only a limited number of suppliers, perhaps not getting the best deal or the best service.
“We try to remove all that hassle. Our platform will have already collected all the necessary information about a customer and the suppliers, which only needs to be provided once when they sign up. They can then start to do business immediately.”
Amongst the first hirers on the platform are Hire4Lower based in Lambeth, Mr Plant Hire in Enfield and Star Platforms of Luton. GetMyEquipment aims to expand into other locations once London is established.
“We aren’t replacing the entire interaction that customers have with rental companies,” said Stephen. “Hirers will still have their own channels to the customer via phone calls and email enquiries from people who need advice. And the same applies to providers of specialist equipment, such as pumps, which has to be engineered into the solution.
“We are typically targeting those users who are, say, doing the same job for the umpteenth time and wondering if there is a better way of procuring the mini excavator, dumper and hammer drill they need.”
I'll be interested to see how GetMyEquipment and other online hire platforms progress, and whether the industry embraces a similar approach as used in booking hotels, buying airline tickets and, even, online dating – but let’s not go there.
