Like Uber for clothes: Millennial startup wants to fight fast fashion with closet rentals

LondonerJenessa Olson has always loved clothes, but she distinctlyremembers the moment she realized her love of cheap fashion came at a cost.

It was 2013, and Olson's undergraduate business ethics course was discussing theRanaPlaza building collapse.The industrial disasterkilled 1,100 people, many of whom were garment factory workers for fast fashion brands like Joe Fresh.

Olson says she walked out of class'heartbroken.'

That moment was the germ of an idea that's grown into STMNT, a clothing rental start-up that Olson launched with her sister, Madison, this year. The aim is toreduce demand for fast fashionwithout denying shoppers the pleasures of a new outfitby helping them find pre-existing garments in other people's closets, Olson said.

"It's a way for people to participate inconscious consumption,by decreasing the demand for new items [and] increasing access to items that are already out there," she said.

Officially, the business is now just three weeks old, and has so far operated largely through Instagram transactions and a 'pop-up' shop, according to Madison Olson, 24.

At the first STMNT pop-up, rentersmet in-person to sift through racks of garments, and bookedclothingin advance of future social engagements. The day before the event, they'll pick their new-to-them outfitup atSTMNT's headquarters atSomerville House on Western University campus, thenbring it back the next day.

"It is really making income off the clothes that are literally just hanging in your closet," said Madison Olson.

So far, 'about half' ofSTMNTusers have been sorority girls, who typically have about six to 10 eventsin the month of November alone,JenessaOlson said.

"That is a lot of outfits," she said.

And while not everyone's social calendar may be quite so full,JenessaOlson said STMNThasalso seen demand from other demographics, like young professionals and moms.

"Basically people that don't have time to shop and look for new things, because they have super busy schedules and they have financial accountability to their families and their businesses," she said.

"So they have been a big market that weweren't initially anticipating would be so big."

Next step: going mobile

Given the current time of year, the business' focus has so farbeen on Christmas and New Year's outfits, but the sisters say they have broader aspirations.

In the works for 2019 is a STMNTapp, similar toAirBNB, thatwill ultimately serve as the main platform for thebusiness. Lenders will post photos of their garments online, and organize their clothing hand-offs independently.

STMNTearns money and pays for overhead charges, like app development and dry cleaning, by tacking on a 15 per cent administration fee, Jenessa Olson said. They also enforce a strict "you break it, you buy it policy" for damaged garments.

Although Jenessasaid the business is turning a profit, it is alsoprimarily self-funded ("Madison and I dipped into the wedding funds. We're both eloping!" she said).

Citingthe recent explosion of sharing economy platformslike Uber and AirBNB, Jenessasaid she's confidentSTMNT will do alright.

"When we talk about being a business that doesn't own any inventory, and you give the rap sheet of these massive companies that are the behemoths of our time, it really hits home with people," she said.