Rent the Runway

Rent the Runway
Type of businessPublic
Founded2009; 16 years ago (2009)
Headquarters
New York City
Founder(s)Jennifer Hyman
Jennifer Fleiss
Key peopleJennifer Hyman (CEO)
IndustryE-commerce
URLrenttherunway.com

Rent the Runway is an e-commerce service where people can rent, subscribe, or buy designer clothes and accessories. It was started in 2009 by Jennifer Hyman and Jennifer Fleiss.

History

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Jennifer Hyman and Jennifer Fleiss met at Harvard Business School in 2007. Hyman had the idea to rent dresses for events after her sister spent too much on a wedding dress. They pitched the idea to designer Diane von Fürstenberg, who became an early partner.[1]

The company launched in November 2009 and gained attention after being featured in The New York Times. In 2016, it began offering everyday clothing through subscriptions.[2]

Rent the Runway raised over $400 million in funding from major investors like Fidelity Investments and Bain Capital Ventures. In 2019, it was valued at $1 billion, making it a unicorn.[3]

Business

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Rent the Runway offers clothes from over 700 designers in sizes 00 to 22. The service includes event wear, everyday clothes, children's clothing, ski apparel, home décor, and accessories like handbags and jewelry.[4]

Challenges

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In 2023, the company struggled as sales failed to meet customer demand. Analysts reported it could face financial trouble, including possible bankruptcy.[5]

Awards

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Rent the Runway appeared on CNBC's Disruptor 50 list in 2013, 2014, 2015, 2018, and 2019.[6] It was also named one of Fast Company's Most Innovative Companies several times.[7]

References

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  1. ↑ Schwartz, Alexandra (22 October 2018). "Rent the Runway Wants to Lend You Your Look". The New Yorker. Retrieved 13 November 2024.
  2. ↑ Harris, Ainsley (23 March 2016). "Rent The Runway Launches Unlimited Service". Fast Company. Retrieved 13 November 2024.
  3. ↑ Maheshwari, Sapna (21 March 2019). "Rent the Runway Now Valued at $1 Billion With New Funding". The New York Times. Retrieved 13 November 2024.
  4. ↑ Nassauer, Sarah (23 July 2019). "Rent the Runway Is Growing Fast, and Struggling to Keep Up". Wall Street Journal. Retrieved 13 November 2024.
  5. ↑ "11 retailers at risk of bankruptcy in 2023". Retail Dive. October 2, 2023. Retrieved 13 November 2024.
  6. ↑ "2013 Disruptor 50 List". CNBC. Retrieved 13 November 2024.
  7. ↑ "Most Innovative Companies: Rent the Runway". Fast Company. Retrieved 13 November 2024.