Rent the Runway

Rent the Runway is an e-commerce platform that allows users to rent, subscribe, or buy
designer apparel and accessories. It was founded by Jennifer Hyman and Jennifer Fleiss, who
launched the company in November 2009.

History
In 2007, Hyman and Fleiss met as sectionmates at Harvard Business School.[3] They regularly
met up to discuss entrepreneurial ideas, one of which was Rent the Runway.[4] After seeing her
sister overspend on an expensive new dress for a wedding, Hyman had the idea of offering dress
rentals for women for special events.[3] Long term, her plan was to offer women unlimited
access to a designer closet they could rent from on-demand.[5] Early on, Hyman and Fleiss
pitched the idea to designer Diane von Fürstenberg as a rental service for her brand's website.
She was initially uninterested, and suggested that instead they create their own multi-brand retail
site. Hyman and Fleiss took her advice, and Fürstenberg signed on as one of the company's first
designer partners.[3][6] A November 2009 article in The New York Times helped bring publicity to
the company shortly after its launch.[3][7] In 2016, the company began offering everyday clothing
through a subscription model.[8]

The company has received over $400 million in venture capital from investors including Fidelity,
Franklin Templeton, TCV, Bain Capital Ventures, Highland Capital Partners, American Express,
and T. Rowe Capital.[9][10][11] In 2015, the company suffered negative press after the departure of
several executives such as CTO Camille Fournier and Linda Honan (now of BBDO).[12][13]
However, it was reported to have a positive
bounce back by the end of 2016 with a Series
E venture investment from Fidelity Rent the Runway
Investments and the launch of new physical
retail shops.[14][15] In 2017, Fleiss left the
company to co-found Jetblack, a concierge
shopping service.[16] Fleiss remained on the
board and Hyman remained as CEO.[17] In
March 2019, Rent the Runway received a new
round of financing that increased its valuation
Type of Public
to the unicorn level of $1 billion.[18]
business
In September 2023, Rent The Runway began
to decline, as sales were failing to meet
soaring consumer demand after a
Traded as Nasdaq: R
disappointing quarter.[19] In October 2023,
CreditRiskMonitor reported that Rent the
(https://ww
Runway was nearing a potential Chapter 11
bankruptcy filing.[20]
nasdaq.co
market-ac
Business y/stocks/r
model t)

Founded 2009

Headquarters New
York
First Physical Location in NYC

City,
The company offers clothes from over 700
designers, in sizes ranging from 00 to 22. In
addition to garments for events, the company
USA
also rents everyday clothing, children's
clothing, ski apparel, home décor, and Founder(s) Jennifer
accessories, including jewelry and
handbags.[21][22][23] The company offers Hyman
several subscription plans at varying prices,
that can be customized. According to the Jennifer
company, as of 2019 subscriptions account
for 75% of its business.[24] Fleiss
Customers can also rent clothes for a 4- or 8-
day period without signing up for a Key people Jennifer
subscription as part of the company's Reserve
program.[25] Each rental includes a back-up Hyman,
size at no additional cost to ensure it fits.
Customers can get a second style for an CEO
additional fee. Rental prices include the dry
cleaning and care of the garments. In 2021,
the company began allowing anyone to buy Industry E-
items secondhand from its site without a
membership.[26] Subscribers have had the commerce
option to buy items they rented since 2016.[25]

Rent the Runway had physical locations in Revenue $100

New York City, Washington, D.C., Chicago, San
Francisco, and Los Angeles,[27] where Million
customers could work with a personal stylist,
and either take items directly with them or (2017)[1]
book dresses and accessories for future
events. In August 2020, the company
Employees 1,800
announced it would be closing all five of its
retail locations, in order to focus on digital
subscriptions, and would be adding more drop
(2019)[2]
box locations.[28]

According to the company, it has the biggest

URL renttherunway.c
dry cleaning operation in the United States
and possibly the world, processing 2,000
(https://www.ren
items per hour (as of 2018).[3][29] The
company has distribution warehouses in herunway.com)
Secaucus, New Jersey, and Arlington,
Texas.[30]

In September 2019, Rent the Runway experienced an 11-day operational glitch and temporarily
stopped accepting new customers.[31] The company resumed regular operations on October 15,
2019, after implementing system upgrades.[32]

Awards and honors

Rent the Runway was named on CNBC's Disruptor 50 list in 2013,[33] 2014,[34] 2015,[35] 2018 and
2019.[36] The company was named one of Fast Company's Most Innovative Companies in 2011,
2015, 2018 and 2019.[37][38][39] In 2018, Fast Company recognized RTR Unlimited as a World
Changing Idea; in 2014 the New York State Society for Human Resource Management honored
Rent the Runway as one of the best companies to work for in New York State;[40][41] and in 2010,
Time magazine named it one of the 50 best websites of the year.[42]

In 2019, Time recognized Hyman as one of their 100 Most Influential People.[43] The firm and
Hyman were named one of the 12 Most Disruptive Names in Business in 2013 by Forbes,[44] and
Hyman was included on Fortune’s Trailblazers list of individuals changing the face of business in
2013.[45] Both Hyman and co-founder Fleiss have been named to Inc. Magazine’s “30 Under 30,”
Fortune’s “40 Under 40,”[46] Fast Company’s “Most Influential Women in Technology,”[47] Fashion
Group International’s 14th annual Rising Stars in Retail,[48] Forbes' "Women Entrepreneurs to
Watch",[49] and The Business Journal 2016 Upstart 100 Class of Creatives.[50]

References

1. Henry, Zoë (July 20, 2017). "Rent the

 Runway Had 6 Million Customers, $100
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2. Robert, Yola (25 March 2019). "Rent The
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