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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