A new company is offering a new model that lets users rent their tech instead of buying, offering an alternative to financing.
A new Berlin startup called Grover is now offering a pay-as-you-go subscription to access the latest consumer tech as an alternative to buying. The company has recently raised 37 million EUR in funding in a Series A round and is poised for expansion.
Grover founder Michael Cassau, a former Goldman Sachs employee, believes that ownership as a concept is becoming obsolete. People are increasingly choosing Uber over car ownership, Netflix over movie ownership and Spotify over music ownership. At Springwise, we have seen this trend with innovations such as subscription furniture and peer-to-peer designer clothing rental. Cassau is now betting that people will also be willing to choose gadget rental over gadget ownership. He claims the service will allow users access to the newest tech at costs up to 95 percent cheaper than buying.
The company will be trading only in Germany to start, and will offer individual products by monthly, three-monthly or yearly subscription, as well as offering a fixed monthly price that lets users switch items at any time. Grover has also been trialling a B2B product aimed at startups who want to subscribe to products as an alternative to using upfront capital for purchasing. Grover are also working on ways to partner with online retailers to offer rental as a checkout option. That way a customer can choose to rent a tech product via their favourite online store powered by Grover.