By Rachael Green, Benzinga
Wallabing is a peer-to-peer RV rental platform where owners make more, and renters pay less. Thats the company motto and the overarching goal of the startup who is entering the $820 million RV rental market. As its platform continues to grow, its launched a Wefunder campaign to raise additional capital while giving investors a chance to be part of that growth.
Wallabing Offers Low-Cost RV Travel To Renters And Lets Owners Turn Unused RVs Into Passive Income
The average RV owner spends between 28 and 35 days each year using their RV. That means their RV is sitting unused for over 330 days out of the year. Meanwhile, 44% of people who go RVing dont own their own RV. They prefer to rent often because its too expensive to justify buying a big-ticket asset that they will only use roughly one month out of the year.
Thats where Wallabing comes in. As the Airbnb of RVs, it gives owners a way to earn extra cash on their unused RV during those 330 or so days each year that they arent using it. And for renters, its a safe, low-cost way to find the perfect RV for their next trip.
For renters, the platform provides a low-cost way to get on the road and explore the outdoors without the high cost of RV ownership. Wallabing also adds 24/7 roadside assistance, mobile check-in/checkout, and comprehensive insurance.
For owners, its free to list on Wallabing and free to rent out their RVs. All renters go through a driving record check and are required to have Wallabings insurance that will cover the RV. Making the platform fee-free for owners is great for those renting out their RVs and lowers the barrier of listing the RV in the first place. That could give Wallabing a competitive edge when scaling the number of listings on the site.
I found that most of the companies, if not all, would charge an owner to list their RV, whether it was 3% up to 25%, said Wallabing CEO Jason Carlson in a recent interview on RV Out West. Owners who would otherwise be interested in renting out their RV might be less willing to risk paying a listing fee or might decide their take-home profit after the platforms cut just isnt worth it.
Its low-fee model could also give it an advantage in attracting renters. Those same platforms that charge fees to owners tend to double down by charging fees to the renters, too. But renters on Wallabing pay just one 10% fee thats charged on the nightly rate onlynot on any cleaning fees or additional equipment they might be renting along with the RV.
To make those low fees possible, Wallabing focuses on making its service as cost-efficient as possible. I looked everywhere we could trim things, said Carlson. That included carefully choosing a great insurance partner and roadside assistance service.
That model is already starting to pay off. In the first half of 2023, the platform has increased its listings by 25% and added thousands to its user base. Since June 15th alone, it gained over 30,000 new users. On the capital raising side, Wallabing also made headway. After raising over $1 million in an initial family and friends funding round, its already added over $55,000 more from investors through its Wefunder campaign. Looking ahead, Wallabing plans to grow its inventory to 150,000 RVs within the next five years.
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