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Homie: Home appliances rental with Pay-Per-Use scheme

Last updated: Sep 28, 2021

Summary

Homie is an online home appliances rental company, that started operating in 2018. For washing machines the customer pays per use in combination with a monthly washing credit. The pay-per-use prices depend on the chosen wash cycle, with lower temperatures and eco-friendly programmes charged at a lower price.

Dishwashers and refrigerators on the other hand are charged on a fixed monthly fee only.

Problem

White appliances contribute a substantial amount to the global waste. Especially modern appliances are being thrown away rather than repaired. Furthermore, efficient more durable washing machines for example are often more expensive than common ones and hence are less often bought. In addition, people tend to wash on higher temperatures than needed. This results in a massive energy inefficiency.

Solution

Homie provides energy efficient appliances. In the case of washing machines that means less water and energy usage resulting in a more sustainable washing cycle at a lower cost for the user. Furthermore, all appliances come with a guarantee of a replace and repair service free of charge.

Homie initially started in 2018 with a full Pay-Per-Use model for washing machines only. Later on, they changed it to a Hybrid Pay-Per-Use Business model with a monthly fee credit. To facilitate the pay-as-you-use option washing machines are connected to the Homie platform via a smart tracker and the customer’s WiFi. The Pay-per-use scheme encourages users to use lower washing temperatures resulting in a more energy-efficient consumption by the users.

There initial rental offer of washing machines was extended and in 2021 customers could rent dryers, dishwashers, refrigerators, vacuum cleaners and irons, as well as laundry baskets and waste bins, all for a monthly minimum usage fee.

At the time of writing (September 2021) prices for a standard washing machine are €13,99 per month that includes approximately 15 washes.

Outcome

An in-depth study showed that Homie’s pay-per-use scheme reduced the number of washes per household by about 20%. Furthermore, the average washing temperature dropped from 40.2°C to 38.1°C. The biggest change was noted for the group who previously washed at the highest temperatures. They lowered their laundry temperature from 46.2°C to 40.4°C.

Homie refurbishes and reuses their devices trying to actively reduce the amount of waste generate through home appliances. In addition, parts that are no longer usable as well as old Homie and non-Homie appliances are being recycled together with Wecycle. Homie also donates washing machines to the Ontmoeting foundation for people in need.

In 2021 there are about 3000 Homie users in the Netherlands.