Rent the Runway, a company that lets people order clothes and then return them, is adding a new tier to its subscription offerings in an effort to grow its business, according to a report by CNBC.
The new options is called a two-swap plan. The company previously had two plans. One is an unlimited service that costs $159 per month and lets people rent four clothing items at a time and return any item as many times as they want. The other option is a one-swap plan that costs $89 a month, and allows for four items to be swapped at the end of each month.
The two-swap plans lets people swap the four items twice for $135 a month.
“We are continuing to push the (envelope) to make [Rent the Runway] as easy to use as possible,” said CEO Anushka Salinas. “You’ll continue to see more and more of that from us this year.”
The new option was created for customers who want a so-called “middle-of-the-road” choice, who want more options but don’t need unlimited.
Salinas said she expects to not only add new subscribers, but also to see some one-swap customers upgrade their plans. There is also the possibility of downgrades, she noted.
Rent the Runway participated in a funding round in which is received a private market valuation of more than $1 billion. Other companies have started their own renting models to compete, including Express.
The company has grown to include formal Indian wear, workout clothes and even ski clothes, while also offering accessories like home goods, jewelry items and purses. It has fostered partnerships with companies like Nordstrom, WeWork and Marriott International, for dropboxes.
Rent the Runway has also hired some former Amazon workers to beef up its logistics operations, and was even forced to stop taking on new customers at one point to deal with the issue.
“At the end of the day, we are a very large logistics company,” Salinas said. “We need to continue to focus on this.”