Rent the Runway Modifies Subscription Plan as Pandemic Surges | Financial Buzz

Rent the Runway Modifies Subscription Plan as Pandemic Surges

Rent the Runway, an online service that provides designer dress and accessory rentals, is updating its membership plans and eliminating the choice of unlimited rentals as consumers adapt to how they shop throughout the global pandemic. According to CEO, Jenn Hyman, the change had been in motion for almost 18 months, before Covid-19. 

Due to the continued changes brought on by the pandemic, the company has had to hasten many decisions and investment opportunities. Last month the company announced it would be permanently closing all stores and purely focusing on the growth of its online platform.

“There are of course going to be a segment of unlimited users who are extremely upset about this decision … and this isn’t a decision we made lightly,” Hyman said. 

With the unlimited option, customers had been able to exchange as many items as desired with a limit of four items at a time, for a total of USD159 a month. With the new program clients will only have the option to choose from plans that include four, eight or 16 pieces a month. 

“We’ve seen 80% of the people who have joined us through Covid are choosing four or eight items per month,” Hyman said. “We think it’s important for members to pay for their usage. Paying per usage is also the most financially viable decision for [us] long-term.”

According to Hyman, the adjustment is set to improve cost control as well as deliveries for all clients. Furthermore, she highlights the environmental value the switch has as it cuts carbon emissions and lowers the amount of shipments, signifying less plastic packaging.