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According to a Thursday announcement, the online rental service is opening an Amazon Fashion outlet.
On its own website, Rent the Runway already provides reduced previously worn items from its hundreds of designer partners, including Jason Wu, Sandro, and Madewell, after the conclusion of their rental cycle. There are around 35 different brands included in the Amazon selection. The agreement is expected to increase sales as well as serve as a marketing tool for Rent the Runway.
According to Rent the Runway co-founder and CEO Jenn Hyman, “working with Amazon Fashion provides Rent the Runway enormous brand visibility.” “We think that strategic alliances like these might spark a fresh source of expansion for our company.”
In 2021, Rent the Runway made a push into resale when it allowed non-members to buy things from the “clearance” section of their website.
While used clothing has been quickly accepted by customers, rental is more difficult to market. In the third quarter of 2022, Rent the Runway had 134,240 active subscribers. In the year ended September 30, there were 950,000 active purchasers on The RealReal, in contrast.
In recent quarters, Rent the Runway’s losses have decreased. In a recent earnings call, Hyman stated that the company anticipates adjusted EBTIDA, or earnings before taxes, interest, depreciation, and amortisation, to break even in the near term.
