Rent the Runway

Rent the Runway

Fashion rental service for designer clothing

About Rent the Runway

Simplify's Rating
Why Rent the Runway is rated
B+
Rated B on Competitive Edge
Rated B on Growth Potential
Rated A on Rating Differentiation

Industries

Social Impact

Consumer Goods

Company Size

501-1,000

Company Stage

IPO

Headquarters

New York City, New York

Founded

2009

Overview

Rent the Runway offers a service that allows customers to rent designer clothing and accessories, primarily targeting women who want to update their wardrobe without the commitment of buying items. The company operates on a subscription model with various plans that provide flexibility, such as a set number of items per month or unlimited swaps, as well as options for one-time rentals for special occasions. Rent the Runway manages all logistics, including dry cleaning and shipping, making it easy for customers to access high-end fashion at a lower cost. Unlike traditional retailers, Rent the Runway promotes sustainability by reducing waste associated with fast fashion, appealing to those who value both style and environmental responsibility. The goal of Rent the Runway is to change how people approach fashion by providing a convenient and affordable alternative to owning clothing.

Simplify Jobs

Simplify's Take

What believers are saying

  • Launched new $119/month subscription tier to expand customer base in 2025.
  • Focus on in-person events aligns with consumer trend towards brick-and-mortar experiences.
  • Collaborations with major brands enhance visibility and attract new customers.

What critics are saying

  • Increased competition from Walmart's Style Tour may impact in-person event attendance.
  • New subscription tier may not attract enough customers if perceived as too expensive.
  • Shift back to digital experiences post-pandemic could affect in-person engagement strategy.

What makes Rent the Runway unique

  • Pioneered 'closet in the cloud' concept, transforming fashion rental industry since 2009.
  • Offers a subscription-based model with flexible plans for diverse customer needs.
  • Built proprietary technology and logistics for seamless rental experience.

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Funding

Total Funding

$978.2M

Above

Industry Average

Funded Over

11 Rounds

Notable Investors:
IPO funding comparison data is currently unavailable. We're working to provide this information soon!
IPO Funding Comparison
Coming Soon

Benefits

Paid Time Off including vacation, paid bereavement, and family sick leave - every employee needs time to take care of themselves and their family.

Universal Paid Parental Leave for both parents + flexible return to work program - because we know your newest family member(s) deserve your undivided attention.

Paid Sabbatical after 5 years of continuous service - Unplug, recharge, and have some fun!

Exclusive employee subscription and rental discounts - to ensure you experience the magic of renting the runway (and give us valued feedback!).

Comprehensive health, vision, dental, FSA and dependent care from day 1 of employment - Your health comes first and we’ve got you covered.

401k match - an investment in your future.

Company wide events and outings - our team spirit is no joke - we know how to have fun!

Flexible Work Policy: Hybrid Work - when our corporate employees return to the office post COVID they will have the option to work remotely 2-3 days a week, in accordance with Company policies.

Growth & Insights and Company News

Headcount

6 month growth

1%

1 year growth

0%

2 year growth

1%
Irish Tech News
Mar 31st, 2025
Rent the Runway wins New Talent award at itag awards

Rent the Runway wins New Talent award at itag awards.

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By Krysten BrenllaNew York City – the city where ambition never sleeps, and every street corner hums with the energy of people chasing their next opportunity. For over 20 years, Lillya Nashanchik was part of that hustle.However, after working closely with startups, top talent, and founders in the Big Apple, she’s now setting her sights on somewhere new: South Florida’s booming tech hub; Miami, Fort Lauderdale, and West Palm Beach.A GROWTH JOURNEY THROUGH TECH AND ENTREPRENEURSHIPOriginally from Rochester, New York, she earned a liberal arts degree from the Rochester Institute of Technology, and upon graduation, she faced the question many graduates know all too well: What’s next? “My parents were both technologists, and hoped I’d become a software engineer, but it wasn’t my strong suit,” Nashanchik said. “With a liberal arts degree, my options felt limited. So, I took a chance – I moved to New York City, and landed a job at a staffing agency that specialized in recruiting women. I had the people skills, and they had a great training program. That’s what sparked my career in talent acquisition.”From the start of her career, Nashanchik knew she loved entrepreneurship and working with smaller startups and founders, especially women

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Dec 9th, 2024
Rent The Runway Focuses On Subscription Expansion With New Tier

After focusing on cost-cutting and margin improvement from 2020 to 2023, Rent the Runway is now back in “growth mode,” according to CEO Jennifer Hyman. As 2024 winds down, Rent the Runway is focusing on its subscription business, with the November launch of a new $119/month subscription tier aimed at expanding its customer base and positioning the company for growth in 2025, Hyman said Monday (Dec. 9) during the company’s third-quarter earnings call. High Engagement, Diverse Use Cases

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