Why Furniture as a Service Works Today
People no longer want to own things – including furniture. Furniture as a Service offers an alternative.
Ana Treñas
PaaS Circular Economy Fueled by Millennials
The PaaS industry and the circular economy are being driven by millennials. They have been restructuring and disrupting long established industries to mold them into their unique lifestyle.
Circular Economy from a Linear Economy
The shift from a linear to a circular economy is not a just a passing trend but a necessity. For many decades, we have been living a linear lifestyle, wherein raw materials are used to create a product, and after its use, waste such as broken appliances or packaging are disposed of. Most of our waste end up in landfills or in the ocean, causing pollution and irreparable damage to the planet and to ourselves.
Solar Power as a Service
Companies like Tesla offer solar power as a service via a subscription scheme. Renting without long-term contracts make environment-friendly energy more accessible to average homeowners.
Software as a Service: The WHYs and the WHOs
Software as a Service (SaaS) is a cloud-based software application that users access via the internet. It is cloud-based and users no longer have to purchase expensive software nor download them to their desktop, laptop, or computer network after a costly one-time purchase. The software application could be anything from a gaming software to a business application.
Light as a Service in the World’s Greenest Building
Many companies have adopted the “product as a service” business model because of climate change. Aside from being more environment-friendly, these offerings, such as light as a service, reduce CO2 emission, pollution and lower the cost of lighting.
Heating as a Service: Japan ahead of its time
To rent or lease heaters is now a thing, especially in Japan where heating as a service has become commonplace. The business of renting out heaters was introduced by a Japanese company in 2001. Since then, the company has continued the approach of selling a service, aside from just selling heating appliances. This business practice is now called “product as a service” or PaaS.
IKEA offers Furniture as a Service
IKEA plans to roll out a Product-as-a-Service business model wherein clients can rent Furniture as a Service instead of purchasing fixtures. It’s a bid that appeals to a younger clientele and everyone who is concerned about the cost of ownership when furnishing a home or office. It is also a move towards a circular economy that involves returning old furniture to IKEA for refurbishing and re-selling.