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How Rent the Runway Lost Over 90 Percent of Its Value

Once-hot fashion rental service struggles with debt and fading demand.

Retail, Marketing and Advertising Entrepreneurship Healthcare Product Development Product Distribution Supply & Demand Chapter 1 Taking Risks & Making Profits Chapter 2 Economics Chapter 3 Globalization Chapter 6 Entrepreneurship Chapter 9 Production & Operations Management Chapter 13 Marketing Chapter 14 Product & Price Chapter 15 Distribution Chapter 16 Place & Promotion Bonus Chapter B Blog Video Understanding Business Higher Education

The fashion startup Rent the Runway seemed destined for long-term success when it launched as an industry-disrupting force in the late 2000s. As this video shows, though, not even a $1 billion IPO could save the company from established competitors and the impact of a global pandemic. 

Questions:

  1. How did the pandemic affect Rent the Runway’s business? 
  2. What advantages do established competitors like Urban Outfitters have over startups like Rent the Runway?
Author: NickelsMcHughMcHugh

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