Circular Business Podcast

Choosing Appliance-as-a-Service for #ClimateAction | Ep. #67

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Appliance as a service is an extension of product as a service model where a customer pays for the service instead of owning the equipment.

If your home requires air conditioning only in summer, then you pay for cool air only in summer. That ways customer has the option to save on capital cost of the goods, have more space at home when the equipment is not needed, opt for newer models or upgrade to your preferred models when you want to without having to worry about owning the goods, worry less about the wear & tear and repairs needed for the equipment (bcoz now the onus of equipment maintenance is on the service provider who leases the equipment to you).

If you are thinking whether this model is environmentally sustainable? You’ll be happy to know that


this model maximizes the value of products & solutions while minimizing the use of new materials and resources and eliminating waste… through service models, product take-back, recycle & refurbishment.

Fortunately today we have a good number of businesses that follow products as a service. Some popular examples here are : Ola / Uber / Zoom Car / AirBnB / Furlenco etc. However there is this one Netherland’s based organization that grabbed my attention which goes by the name Homie.

The idea for Homie started on a kitchen table and they have been in business since 2018.

You know how I’m a sucker for a good marketing pitch, and that’s exactly where I found Homie doing a good job. Their website is so crisp on messaging right from product & service offering to pricing to how they are helping consumers reduce their carbon footprint.

Their business model may not be different than most product-as-a-service company but to me it's their mission i.e. “to strive for a cleaner world” makes a big difference.

How are they contributing to the circular economy?

  1. They make devices last longer : They supply energy-efficient machines with a long service life and encourage manufacturers to make machines that are more economical, durable and easy to repair.
  2. They reduce electronic waste: Together with Wecycle, they recycle parts from old Homie and non-Homie devices that can no longer be used.
  3. They influence sustainable consumption behaviour: Research shows that their Pay-Per-Use model ensures that users wash more efficiently and use about 25% less energy and water.
  4. Another unique feature about Homie is their monitoring system. Once a customer places an order, the company delivers and installs the product at home, they connect each device to your Wi-Fi which then lets you track your usage. For example , with a washing machine, if you have paid for 15 washes, this software helps you keep track of your washes and also gives you cost benefits when they use the appliance in “ECO” mode. Now isn’t that cool?

    5. Tune in to learn more.

    Reach out to me on LinkedIn | Facebook | Instagram | Twitter & also write me an email on [email protected]

    Keyword : What is a circular economy?

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    Circular Business PodcastBy Sreepriya Sridharan
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