Launch new subscription-based business model to promote circular economy

We know that an appliance breaking down can cause hassle and difficulties for the consumer. We also know that appliances are often thrown out well before they need to be, without parts being recovered or recycled, adding to unnecessary waste and environmental impact.

Electrolux Group is committed to contributing to the circular economy by integrating a circular approach into home appliance products and solutions. The launch of our Appliance-as-a-Service business model is just one example. By enabling consumers to rent rather than purchase an appliance, we make it easier to repair, and when necessary, recycle appliances in the home.

The business model has so far been introduced in Sweden and Singapore through a number of offerings. In Sweden, our award-winning Pure i9 robotic vacuum has been offered to consumers since 2019 on a subscription pay-per-use basis, with all service and maintenance included in the fee. Crucially, if a consumer chooses to end the subscription, the vacuum is refurbished and made available for the next customer, contributing to a circular economy.

In 2022, we also launched a subscription-based service in Sweden for landlords and signed one of the country’s largest landlords, SKB, as the first customer. With this business model, SKB (Stockholms Kooperativa Bostadsförening) pays a monthly fee for which Electrolux installs, cares for and repairs the products, prolonging the appliance life length and reducing the carbon footprint per building. When an appliance replacement is needed, we oversee refurbishment as well as product recycling.