Rent the Runway

So here's the thing about Rent the Runway-it's basically revolutionized how women think about their closets, and honestly, it's kind of genius when you break it down.

Founded in November 2009 by Jennifer Hyman and Jennifer Fleiss, two Harvard Business School classmates, the whole concept started from a pretty relatable problem. Hyman watched her sister overspend on an expensive new dress for a wedding and thought, "There's got to be a better way." And there was.

The model is straightforward but brilliant: the company offers clothes from over 700 designers, in sizes ranging from 00 to 22. You can rent designer pieces for a fraction of retail price, wear them, return them (no dry cleaning required), and swap for something new. It's like having a constantly rotating dream closet without the commitment-or the credit card bill that makes you cry.

What really sets them apart is the scale. According to the company, it has the biggest dry cleaning operation in the United States and possibly the world, processing 2,000 items per hour. That's not a typo. Two thousand items. Per hour. They've built this massive reverse logistics operation that most people never think about but is absolutely critical to making the whole thing work.

The business has evolved significantly since launch. As of 2019, subscriptions account for 75% of its business, which shows they've successfully shifted from one-off event rentals to becoming part of women's everyday wardrobes. Your shipment will be delivered to your door in 1-2 business days, and you can keep items as long as you want with a membership.

But it hasn't all been smooth sailing. In September 2019, Rent the Runway experienced an 11-day operational glitch and temporarily stopped accepting new customers, resuming regular operations on October 15, 2019, after implementing system upgrades. And like many companies, they had to pivot during the pandemic-in August 2020, the company announced it would be closing all five of its retail locations, in order to focus on digital subscriptions.

The sustainability angle is huge here too. Instead of buying fast fashion that ends up in landfills, you're essentially sharing a communal closet with thousands of other women. In addition to garments for events, the company also rents everyday clothing, children's clothing, ski apparel, home décor, and accessories, including jewelry and handbags. It's circular fashion before circular fashion was cool.

In March 2019, Rent the Runway received a new round of financing that increased its valuation to the unicorn level of $1 billion. That's the kind of validation that shows this isn't just a niche service-it's fundamentally changing how people consume fashion.

The real magic? Your first 60 days are risk-free-if you don't like an item for any reason, let us know in the app and you'll get free replacements when you create your next shipment. They've removed basically every barrier to trying it out.

Whether you're someone who loves fashion but hates clutter, or you just want access to designer pieces without the designer price tag, Rent the Runway has created something genuinely useful. It's not perfect, but it's definitely changed the game.