Why JoyMode's Business Model is so successful?

JoyMode is an innovative company located in Los Angeles, California, which offers an alternative to owning things. The company was founded in 2015 by Joe Fernandez with the aim to reduce the burden of ownership by offering the rental of items that people only need occasionally. JoyMode's vast catalogue includes items ranging from camping gear, video game consoles, to party supplies. The company's mission is to help people experience more joy and less stress from the stuff in their life, by providing a platform where they can rent items for temporary use, instead of buying and storing them. JoyMode's business model is based on a subscription service. Members pay a monthly fee and are then able to rent items from the company's extensive catalogue. The items are delivered to the member's doorstep and picked up again when they are finished using them. This model allows JoyMode to continuously rotate their inventory and keep items in use, instead of them sitting unused in a storage unit or garage. The company's revenue model is primarily based on these subscription fees. The monthly fee varies depending on the plan chosen by the member, offering different levels of benefits. In addition to the subscription fees, JoyMode also generates revenue through late fees if items are not returned on time, and damage fees if items are returned in poor condition. This revenue model allows JoyMode to maintain and grow its inventory, and continue to offer a wide range of items for rental.

Social impact:

Life changing: self-actualization, affiliation/belonging, motivation

Emotional: fun/entertainment, provides access, design/aesthetics

Functional: saves time, simplifies, reduces effort, avoids hassles, variety

Access over ownership:

The accessibility over ownership model is a business concept that allows consumers to utilize a product without owning it. Everything serves a purpose. As a result, consumers all across the Western world are demanding more value from their goods and services, and they are rethinking their relationship with stuff.' Furthermore, with thriving online communities embracing the idea of access above ownership, the internet is developing as a robust platform for sharing models to expand and prosper.

Collaborative consumption:

Collaborative Consumption (CC) may be described as a collection of resource circulation systems that allow consumers to both get and supply valued resources or services, either temporarily or permanently, via direct contact with other customers or through the use of a mediator.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Sharing economy:

The sharing economy eliminates the necessity for individual asset ownership. The phrase sharing economy is an umbrella word that encompasses various definitions and is often used to refer to economic and social activity that involves online transactions. Originally coined by the open-source community to refer to peer-to-peer sharing of access to goods and services, the term is now occasionally used more broadly to refer to any sales transaction conducted via online marketplaces, including those that are business to consumer (B2C) than peer-to-peer.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Rent instead of buy:

Services that do not need the product to be purchased but rather rent it for the economic benefit of requiring less money to access the commodity. When you rent, you assume less obligation since most of the burden is placed on the owner's shoulders. There is no debt; you are just responsible for the monthly rent. When renting, you have more flexibility by signing a six-month or one-year lease. This implies that you will be confined to that location for at least that period. When your lease term expires, you have the option of switching to another product or renewing your lease.