It’s a for-profit service that people use to rent-out, and rent-in their tools

So yes this is the same old shit as labeling Uber or Lyft a “ridesharing app” instead of calling it what it is, a taxi service.

The correct name for this type of entity would be a consignment & rental store.

This kind of thing has NOTHING to do with libraries whatsoever in structure but more importantly in intended function and community impact.