Joymode is a subscription rental experience startup. They rent products to their members that are used infrequently, mostly based around experiences or utility. For example, one of their “bundles” is for camping where they deliver all the equipment you need for camping for a weekend. Another is for apartment cleaning where they provide vacuums and more specialized cleaning equipment most people don't own themselves.
The benefit to the consumer is these are highly curated short-term rentals so members don’t have to make permanent purchases of items they will use infrequently. Joymode does all the curation for the experience as well as does free delivery and pickup of bundles.
Joymode business model currently is its member’s pay an annual membership fee and then a rental fee for each bundle they use.
The team is based in Los Angeles, California.
Why I like Them
I like Joymode for a few reasons:
Subscription membership model makes customers sticky once they sign up, with heavy loyalty incentives to be a long-term member.
Joymode knows its Millennial customer base. They are solving a number of well-documented pain points for younger generations including low disposable income as well as the trend of valuing experiences over ownership. It also dovetails nicely into the fact that urban consumers tend to have smaller living spaces and won’t need to store any of these products.
Strong cost saving to the consumer as Joymode’s bundles are less than 10% of what it would cost to purchase the products.
Good unit economics with Joymode publicly disclosing ~50% margins on a per reservation basis.
Interesting potential growth avenues for the company, especially for Joymode to work with brands to promote their specific products into bundles with Joymode’s young consumer base.
Low customer acquisition costs as most customers are via word of mouth as the experiences are naturally viral due to word of mouth marketing.
Joymode has the opportunity to be the Costco of the 21st century to today’s younger generations.