No more window shopping! Rent the Runways has you covered, literally covered in clothes!

We have all been caught in a situation, looking at the same designer dress or shoes for months that we can’t afford to buy. Well, Rent the Runway is here to give you the opportunity to dress and wear special designer clothes that you usually can’t afford at the moment.

Jennifer Hyman got the idea of renting designer clothes when her younger sister broke the bank by spending too much on a dress. Rent the Runway is a brand for women that allows them to spend less and wear more.

Instead of women buying expensive clothes, they get to rent out (and later even buy) designer-brand clothes for far less; this way, women can feel and look their best way.

Jennifer Hyman and Jennifer Fleiss put their minds together back in 2009 and came up with an idea that would change a trillion-dollar industry forever.

It’s Just an Idea…

The two Jennifers, Hyman, and Fleiss met while they were attending Harvard Business School, where they became instant friends. Jennifer Hyman got her Bachelor’s degree in Social Studies from Harvard University and was attending Harvard Business School for her Master’s degree. Jennifer Fleiss, on the other hand, earned herself a Bachelor’s in Political Science at Yale University and was also attending Harvard Business School to get her Master’s.

Jennifer Hyman was back at home for Thanksgiving break and while home, her little sister wanted to show her the dress that she bought. The $2000 designer dress was for a wedding she was invited to, however, it sent Jeniffer’s sister into credit card debt.

While baffled by the price of the dress, and the fact that her little sister actually went all-in and bought it, triggered Jennifer Hyman into a brainstorming of ideas.

Jennifer came up with the idea to rent out her sister’s dress for less, something that no one had thought of before. That way, people won’t be spending loads of cash and they still get to wear their dream dress.

The first thing she did when she got back from Thanksgiving break, was talk to her friend, Jennifer Fleiss about the idea of renting designer clothes.

An Advice from Fashion Royalty

Both loving the idea, the two Jennifers wanted to go straight to the top and managed to get a meeting with the famous Diane von Furstenberg - the queen of the wrap-up dress. While Diane didn’t really see the vision that Jeniffer Hyman and Jennifer Fleiss had, she gave them some professional advice and encouraged both of them to create their own rental company.

The great Diane von Furstenberg was even kind enough to become the first big brand to partner up with them.

Because they believed in their idea, the Jennifers set up a little shop on campus. The idea was to get their peers to try on some dresses and if they liked them, they could rent them out. Seeing how excited and thrilled all of the students were, both Hyman and Fleiss were certain that the vision would become reality.

Rent the Runway Is a Go!

Both Hyman and Fleiss, with the help of some friends and loads of interns, managed to create a website and reach out to the whole nation.

On the 10th of November 2009, the Rent the Runway website went live. At first, it was only clothes that were up for grabs, however as time passed, accessories like jewelry and handbags were added, much to the pleasing of many striving fashionistas.

As the brand grew bigger, in 2013, Rent the Runway launched a plus-sized range of clothes, an undertaking that amassed huge potential since the plus-size market was all forgotten about.

For about 5 years, Rent the Runway was an online store, where women could rent out and later even buy designer clothes. However, in October 2014, after checking out various locations, the company finally opened its own shop in the Flatiron building in NYC.

In March 2016, Rent the Runway made its biggest move yet, by creating a monthly subscription. It was the first in the industry and it would change everything for the young female entrepreneurs. Women get monthly subscriptions to gain membership perks. The first perk that women get is receiving their clothes fully clean and ready to put on as soon as they take them out of the box.

Members also get access to special and lucrative promo deals, designer clothes that aren’t available to everyone, and get some discounts if they choose to make a purchase.

Getting a monthly subscription didn’t mean getting a random box of clothes that’ll come to your doorstep, rather you get to choose what you wear. And finally, if people feel that there isn’t a need to pay a monthly subscription, they can always cancel it, without having to pay any extra fees.

There’s a New Unicorn in the Hood

As years went by, the business was getting bigger and bigger and it skyrocketed, reeling-in investors from all over the US.
Well-known businesses like American Express, Bain Venture Capital, Fidelity, Franklin Templeton, TCV, and loads more were lining up to get a chance to work with Rent the Runway.

The business has well over 2 million happy customers and has partnered up with more than 700 different brands - more than a million and a half pieces of clothing have come through Rent the Runway.

Throughout the years, Jennifer Hyman and Jennifer Fleiss’s company managed to raise more than $520M, from a total of 19 investors, like SuRo Capital, and Franklin Templeton Investments among many others.

Finally, in 2019, investors pumped more money into the business, granting the company Unicorn status for raising more than $1 billion.

Where Does the Runway Stretch to, for Rent the Runway?

Before starting the monthly subscription, Rent the Runway held 5 functioning retail shops all over the United States. From New York City, D.C., Chicago to Los Angeles and San Francisco, the business was booming.

In 2020, all five stores were closed and the company decided to go digital once again.

Even though some were skeptical of going digital again, today, 75% of the company’s revenue comes from monthly subscriptions. Due to its success, the company continues to evolve, having more than 2000 employees. The headquarters of the company hasn’t changed since day one, and it is still in New York City.

Over the years, Rent the Runway has accumulated numerous awards.

CNBC has complimented Rent the Runway with a spot on their Distributer 50 list, 5 years on occasion. The NY State Society for Human Resource Management praised Run the Runway as one of the best companies that exist in NY in 2014. Time Magazine has chimed in naming the company in the best 50 websites of 2010.

Time Magazine also placed the CEO and Co-founder Jennifer Hyman in their 100 Most Influential people for 2019. Forbes also gave its praises, giving the company the status of the 12 Most Disruptive Names in Business in 2013, naming both founders as Women Entrepreneurs to Watch.

Rent the Runway doesn’t just save women loads of money on expensive designer clothes, but it also gives them the opportunity to express themselves through clothes, find out what style fits best, and what brightens up their day, clothes-wise.

Apart from saving money, the company has said that increasing the rental side of the industry has lowered the negative environmental impacts. Some interesting stats have come out since the launch of Rent the Runway, like a 24% reduction in water usage, 3% reduction in CO2 emissions, and 6% reduction in energy usage. It has been estimated that once the company got into the industry, there was no need to produce 1.3 million new pieces of clothing.

Fending off rivals like Stitch Fix, Le Tote, and Swap.com wasn’t easy to do, but Jennifer’s idea was more than just an idea - it was a revolutionary concept that shook the fashion grounds for many in the US.

With the number of customers growing and growing each day, Rent the Runway will continue to provide women with their dream clothes, for less.