Rent the Runway
| Type | Private |
|---|---|
| Foundation date | 2009 |
| Headquarters | New York City, USA |
| Key people |
Jennifer Hyman (CEO, Co-Founder) Jennifer Carter Fleiss (President, Co-Founder) |
| Industry | E-commerce |
| Website | RentTheRunway.com |
Rent the Runway is a membership-based website that rents high-end designer apparel and accessories on a 4- or 8-day basis. The company was founded by two Harvard Business School graduates, Jennifer Hyman and Jennifer Carter Fleiss. Launched in November 2009, the website now offers over 25,000 dresses and accessories from over 165 designers such as Badgley Mischka, Vera Wang and Calvin Klein.
History
In 2008, Hyman and Fleiss met as section mates at Harvard Business School. The idea for Rent the Runway came to Hyman during a Thanksgiving break when her sister Becky was searching for a dress to wear to a wedding and had one of those ‘closet full of clothes but nothing to wear moments.' As soon as Hyman returned from break, she told Fleiss about the idea. The two immediately went out and started selling the concept to both designers and customers without writing a formal business plan.[1] Bain Capital Ventures provided seed financing and in November 2009, the site launched. In early 2010, Rent the Runway secured $15 million in funding led by Bain Capital Ventures and Highland Capital.[2] In May 2011, Rent the Runway raised an additional $15 million in venture capital from Kleiner Perkins Caufield & Byers (KPCB).[3]
As of April 2013, over 3 million members have signed up for access.[4] The company also has presence on over 150 campuses through the Runway Rep college program.[5]
In June 2013, Rent the Runway acquired the startup, Go Try It On. The site allowed to users upload photos, add descriptions of brands and context of outfits, and comment on other users' clothing.[6]
Business model
Membership to the Rent the Runway website is free. The site features apparel in sizes 0 to 16, depending on the designer, and each rental includes a back-up size at no additional cost to ensure fit. Customers can get a second dress style with their order for an additional $25. Rent the Runway provides customers with a pre-paid, pre-addressed package to return the dress, and offers a $5 insurance fee to protect against accidents.[7] Rental prices include the dry cleaning and care of the garments.
Reception
Rent the Runway has been described as the “Netflix of Fashion”.[8] In August 2010, it was named as one of the 50 best websites of 2010 by TIME magazine,[9] followed by 2011 honors in Fast Company as one of the 10 most innovative fashion companies of the year.[10] Rent the Runway co-founders Jennifer Hyman and Jennifer Carter Fleiss have been named Inc. Magazine’s Top 30 Under 30,[1] Fast Company’s Most Influential Women in Technology,[11] and Fashion Group International’s 14th annual Rising Stars in Retail.[12]
References
- ↑ 1.0 1.1 Tiffany Black. "Jennifer Hyman and Jenny Fleiss, Founders of Rent the Runway". Inc Magazine. Retrieved 17 January 2014.
- ↑ Lena Rao (2010-02-25). “Rent The Runway Raises $15 Million For The Netflix For Couture”. Techcrunch.com
- ↑ Thomas Oppong (2011-05-24). “Rent the Runway Scores $15 Million From Kleiner Perkins”. Alltopstartups.com
- ↑ Teresa Novellino (2013-04-25). “How Rent the Runway coaxed investors into an untested business model”. Upstart
- ↑ Hannah Gettleman (2011-12-03). “Rent the Runway: Your all-access pass to fashion paradise”. USA Today
- ↑ Leena Rao. "Rent The Runway Acquires Fashion-Focused Photo Sharing And Styling App Go Try It On". TechCrunch. Retrieved 17 January 2014.
- ↑ Helen Coster (2011-04-29). “Names You Need To Know: Rent The Runway”. Forbes.com
- ↑ Jenna Wortham (2009-11-09). "A Netflix Model for Haute Couture". The New York Times
- ↑ "50 Best Websites 2010". (2009-08-25). Time.com
- ↑ "Most Innovative Companies". (2011-03-01). FastCompany.com
- ↑ Suzy Evans "Women in Tech". FastCompany.com
- ↑ Leah Chernikoff (2011-01-28) "Fashion Group International Crowns Rising Stars". Fashionista.com