Owning things used to mean you’d made it, just about half a generation ago. Now, it just means you’re stuck. For a generation raised on instant upgrades, global mobility, and curated lifestyles, permanence feels more like a burden than a goal. Why buy a car when you can rent a Mercedes for a day? Why commit to a mortgage when a sea-facing Airbnb is a tap away?
In this article, we unpack the rise of the rental economy and how it’s reshaping everything—from how we consume luxury to how we define success or prioritise simplicity and convenience. Expect insights into shifting mindsets, the tech fueling this change, the emotional and economic trade-offs, and what the future might look like when everything, even identity, can be rented.
Ownership today feels more like a liability than a legacy, especially to the new generation – what marketers refer to as the millennials and Gen Z. In an age where careers shift like sand and cities feel more like stopovers than homes, permanence seems out of fashion — and flexibility? That’s the real power move. Why own when you can access, upgrade, and move on at the tap of an app?
This shift is more than a passing fad. It’s a fundamental reshaping of consumer psychology, where the aspiration isn’t to own a lifestyle but to experience plenty. Whether it’s a Louis Vuitton clutch for a night, a Mercedes S-Class for the wedding, or a Scandinavian-themed studio in Goa for a two-month “workation,” the rental economy is offering young Indians something ownership never could: fluid identity and frictionless living.
A few key factors converge here. Rising disposable incomes, wider credit access, and the explosion of tech-enabled platforms have democratised luxury and convenience. Renting is no longer a fallback for those who can’t afford to own. It’s a choice for those who can afford to explore. With EMIs no longer the default and Insta-envy fuelling lifestyle churn, the idea of sampling everything without being shackled to anything is deeply appealing.
At the same time, urban transience is accelerating. Young professionals are moving cities, hopping roles, and restructuring their lives every few years. In such a fluid reality, committing to a car loan or a 20-year mortgage can feel like an emotional burden. This financial outlay comes with a long-term mental contract. The traditional markers of stability now carry a weight many aren’t eager to shoulder.
The process itself is daunting: lengthy paperwork, fluctuating interest rates, credit scores, the stress of approvals—and then, the years of repayment that follow. But the true cost is often psychological. Long-term financial commitments tend to narrow personal freedom. They tether people to jobs they may no longer enjoy, discourage risk-taking, and anchor them to geographies they may outgrow.
For a generation raised on the promise of global mobility and real-time options, this feels counterintuitive. The aspiration is no longer to own and hold, but to access and adapt. Renting offers precisely that: the ability to pivot quickly, explore widely, and avoid being bound by decisions made under outdated notions of success.
Geetansh Bamania, CEO of Rentomojo, puts it succinctly:
“We’re leading a mindset shift from ownership to access. In a world that values mobility, affordability, and digital-first living, our subscription-led model offers flexible access to everyday essentials. Renting today is a conscious lifestyle choice—one that aligns with the priorities of a future-focused, experience-driven generation. The growth we’re witnessing is a direct reflection of this shift, as more Indians embrace rental subscriptions as a smarter, more sustainable way to live.”
What we’re witnessing is merely a shift in the consumer behaviour, it’s a recalibration of what freedom looks like in an age with never-ending choice. Renting, by contrast, aligns seamlessly with the gig economy, the creator economy, and the “live light, move fast” ethos of the digital native. In a world where side hustles are a part of most lives, work can be remote, and careers often zigzag more than climb ladders, the idea of tying oneself down with big, immovable assets feels outdated and even risky.
Ajith Mohan Karimpana, founder of Furlenco, echoes the sentiment:
“What we’re really offering is not just furniture. We’re offering freedom. The freedom to move, upgrade, and experiment with your living space without burning cash or time.”
For generations now flexibility is the currency. Renting supports this fluidity. Investing in furniture when one might take his next project across the country or continent in three months will be taxing. Why buy a car when you can get one on demand for a shoot, a trip, or a special event, without worrying about EMIs or service schedules or uber your way whenever you want
Perception and presentation matter more in this creator economy. Renting high-end fashion for an event, a luxury car for a shoot, or a stunning Airbnb allows everyone to maintain an aspirational aesthetic without burning through capital. It’s not always about faking it, it’s about accessing the tools to embellish your story.
This “access over ownership” model perfectly complements the lifestyle of a generation that prefers to keep commitments open-ended, options plentiful, and mobility frictionless. Renting, which happened as an answer to necessity, is now a strategy for staying agile in a fast-moving world.
While the rental economy unlocks choice, it can also perpetuate a constant state of impermanence—where nothing is ever fully yours, and satisfaction is always a click away. There’s also the looming risk of overconsumption, masked as minimalism. When the barrier to access drops, so does the brake on indulgence. Why buy one handbag when you can rent ten?
Access is the new status symbol.
And then there’s the emotional flip side, can experiences replace the sense of security and stability that ownership once offered? Or are we renting our way into a culture of detachment, where everything is borrowed, and nothing truly belongs?
Still, the momentum that it has been gaining is unmistakable. With sectors from real estate to mobility and fashion to furniture being disrupted, the rental economy is an emerging default. And the businesses that understand this are making a shift to cater to the needs of the present.
Luxury car rentals
Millennials and Gen Z are redefining how luxury is experienced. Instead of investing in high-end vehicles, many now prefer luxury car rentals that offer premium experiences without the long-term financial and maintenance commitments. In urban centres, where owning a car can often feel more like a liability due to high upkeep and limited parking space, this shift is especially pronounced. Add to that the modern reality where buying a car may not be a priority amid shifting life goals or frequent relocations. Moving your own car to another city can mean driving it cross-country or dealing with expensive, time-consuming logistics. But that doesn’t mean you have to go without. Platforms like Zoomcar step in to bridge this gap—offering the freedom to rent a car in any city, drive intercity without stress, and choose from a wide variety of vehicles that fit your mood or moment. It’s convenience without compromise, tailored for a generation that values experience over excess.
Anirudh Lamba, Director – Supply Growth and Strategic Partnerships at Zoomcar, observes:
“We’re seeing this shift play out firsthand at Zoomcar. For Gen Z, it’s not just about saving money — it’s about having the freedom to access what they need, when they need it, without being tied down. Ownership is no longer aspirational in the same way it once was. A car, for instance, is seen more as a utility than a trophy. Renting gives them flexibility, lets them experiment, and fits right into their value system — whether that’s sustainability, smart spending, or experience over excess.”
According to a report by Rediff.com, the cost of renting luxury cars in India varies significantly, with prices ranging from ₹10,000 to ₹5 lakh, depending on the model and duration. Vehicles like the Mercedes GLE, BMW 5 Series, and Mercedes S-Class are available for rentals starting at ₹10,000, while ultra-luxury models such as the Mercedes Maybach, Range Rover Vogue, and Rolls-Royce can command prices up to ₹5 lakh. This pricing structure makes luxury more accessible to younger consumers seeking unique experiences, seeking luxury without the financial burden of ownership. In fact, luxury vehicles have become wedding accessories in places like Delhi, where a Mercedes or BMW, decked like a bride, can be rented for ₹25,000 to ₹55,000 for a few hours of grandeur.
Amritpal Singh Mann, Chairman of Mann Travel Agency, which supplied dozens of luxury cars for events like the G20 Summit and Ambani family weddings, confirms this rising trend:
“We’ve had bookings in excess of two dozen luxury cars during the wedding season alone. This trend isn’t new, but it’s grown massively in recent years.”
The digitalization of rental services has further fueled this trend. Online platforms allow users to browse, compare, and book luxury vehicles with ease, catering to the tech-savvy nature of younger demographics. A report by Fortune Business Insightshighlights that the online segment is gaining popularity among young consumers, offering a wide range of luxury cars to choose from and facilitating round-the-clock booking.
The housing market has also felt the impact of the rental economy, with platforms like Airbnb transforming how people perceive property rentals. Initially designed to help homeowners rent out spare rooms, Airbnb has grown exponentially, with approximately 25% of its 7 million listings now operated by rental companies rather than individuals.
This shift has had notable effects on housing markets worldwide. A study cited by Forbes found that a 1% increase in Airbnb listings leads to a 0.018% increase in rents and a 0.026% increase in house prices. While these percentages may seem minor, they contribute to a cumulative effect that can significantly impact affordability over time.
This is despite the fact we have an ongoing debate about housing availability and affordability. In cities like Barcelona, protests have erupted over soaring rental prices, with residents attributing the surge to the proliferation of tourist accommodations.
Their success lies in recognizing what traditional markets missed: ownership is no longer the goal for everyone—it’s often the obstacle. Not everyone wants the keys to a 30-year mortgage.
Nikhil Kamath, co-founder of Zerodha, explains the logic behind choosing to rent: “Rental yields are low at around 3%, while home loan interest rates are upwards of 8%. This imbalance means that for many, renting simply makes more economic sense right now.”
Access over ownership in media consumption
The media industry has also embraced the rental economy through streaming services like Netflix, prime etc. By offering vast libraries of content for a monthly fee, Netflix has shifted consumer behavior away from purchasing individual movies or shows. This model emphasizes the leisure and autonomy of accessing the content at the desired time day or hour.
However, this shift is not without challenges. The Guardian notes that while the remote-rental model has proven successful for companies like Netflix, it has been tricky for others, with some rental services shutting down due to sustainability issues.
What began as a convenience has quickly changed into one of the most lucrative shifts in consumer behavior. The rental economy isn’t just changing how we drive, live, or dress—it’s quietly engineering the blueprint for the next trillion-dollar opportunity.
Industries built on one-time ownership models are now reinventing themselves for subscription-based, service-first audiences. From auto giants rolling out luxury car subscriptions to furniture companies offering rent-and-rotate schemes, the shift is clear: recurring revenue is the new retail goldmine. And while it makes economic sense, there’s also a growing environmental upside. Renting inherently promotes a more circular, sustainable economy—less manufacturing, more reuse, and a lighter footprint on the planet.
But perhaps the most interesting shift is cultural. We are witnessing a fundamental rewiring of what it means to “have it all.” In an age of fluid identities and mobile lives, people no longer want to own but experience. They want to test, trial, taste, and trade.
The runway ahead is wide open. If today we’re renting cars, couches, couture, and condos—what’s next?
If the 2010s were about ownership and the 2020s about access, the 2030s might just be the decade of “on-demand identity” where every aspect of lifestyle, from where you live to who you’re seen with, can be curated, rented, and returned with zero baggage.
In Japan, for example, people now rent huggers, listeners, and even fake family members to combat loneliness and emotional isolation. Platforms like Family Romance offer “rental partners” who can accompany you to dinner, pretend to be your spouse at weddings, or simply offer silent companionship. In a world that’s more digitally connected yet emotionally distanced, could such services find a market in India’s rapidly urbanizing, often solitary metros?
Given the rise in nuclear households and pandemic-induced social disconnect, the answer might be – why not?
We’re already seeing early signs of this. In parts of India, companies offer rentable friends or companions for the elderly. In China, you can rent a crowd to attend your store opening or a cheering squad for your sports event. Pet rentals for weekend getaways? Already a thing in several Asian cities. Designer plant rentals for Instagrammable home corners? Sprouting up in Europe.
The real winners in this economy will be businesses that can productize emotion, convenience, and status and facilitate turning human needs into rentable moments.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.