Grover is the European leader in technology rentals, allowing people to subscribe to technology products on a monthly basis as an alternative to buying them. Founded in 2015 by Michael Cassau, Grover’s mission is to establish innovative new ways to acquire technology. With Grover, subscribers have access to a wide range of technology products, including smartphones, laptops, virtual reality (VR) equipment and wearables through a flexible monthly rental. Grover’s service allows its users to keep, exchange, purchase or return products based on their individual needs and budget.
They recently raised more than $ 1 billion in capital and financing. Thanks to this round, they will be able to accelerate growth and global expansion in new markets, such as the US, where they have recently landed. In addition, the financing will also allow them to increase the circulation of devices, they already have 475,000 but expect that in 2024 they will reach more than 5 million.
We have interviewed the Grover Marketing Manager, Sergio Alonso, to find out how this brand works, which is growing so much and has a very sustainable vision.
Ecommerce News (EcN): How has the entry of the brand in Spain been? Has it been well received? Has it been similar to that of other European countries, such as Germany, Austria and the Netherlands, or are there differences?
Sergio Alonso (SA): Grover chose Spain as the first southern European country in which to expand his business due to the potential of the technology rental market, especially in the context in which we currently find ourselves, in which technological products are increasingly necessary in our day to day: either because we spend more time at home and have needs to cover with new technology, or because we need more contact through technology with other people.
The opening of the Spanish market marked Grover’s third entry into the international market, after successfully launching in Austria in 2019 and the Netherlands in 2020. The response for the moment is being good and we hope to be able to open soon the services part for companies, Grover Business, to give Spanish companies the opportunity to rent their technological devices with the flexibility that work environments demand today.
Although there is a tendency to think that in Spain in general people are more reluctant to rent technology or other second-hand goods, that has been changing. In the last year, several companies have seen strong growth thanks to helping consumers resell their own items.
EcN: What logistics operators do you work with and what are the demands you place on them to work with you?
SA: The products are sent from our main warehouse in Germany to Spain, so it is this first initial stage we do not plan to open our own warehouse to send the devices in Spain, but if the volume of business grows and at a logistical level it requires it, we will go for it.
EcN: What makes Grover different? Why should a customer choose to rent a product instead of purchase?
SA: For us, the clearest difference that Grover offers is being able to pay for the use, avoiding that technological products end up being underused and collecting dust in a drawer of our house. This, in addition, generates a problem at the level of waste of technological waste.
This underutilization experience we are talking about is something we all know well: we buy a product and, a year later, we stop using it, we buy the new version of this same product or, in the worst case, we lose interest in them. completely. Every year, millions of telephones, cameras, consoles and other technological devices end up being thrown away or completely forgotten in a corner of our house. In addition, proper disposal and recycling of these types of products – or even the reselling process – requires time and effort that many people are unwilling to invest.
Underused products are becoming a growing problem for society, economically, environmentally and psychologically. These represent a large part of the technological waste that is generated each year on our planet and remind us that many of the consumption habits that we have internalized are not sustainable.
Grover fits perfectly in the paradigm shift in which we find ourselves, in which other more sustainable modes of consumption are prevailing and that better adjust to our lifestyles. At Grover we promote the circular economy through a subscription model that allows us to reduce the underutilization of products and ensure that we take advantage of them, while adjusting to the pocket of our subscribers. On average, our products remain in circulation for 3 years and are used by 4-5 people, before being sold in a secondary market, adding another cycle to their useful life.
EcN: Are you worried about the competition? Do you consider that it is a growing sector?
SA: Analyzing the Spanish market we cannot say that there is a real competitor. Grover’s positioning is unique and our catalog represents a unique and complete offer, as well as the experience we have in serving our clients, coming from the more than 100k clients served and the more than 5 years of operations in this business.
We are not worried about competition and, in fact, we believe that it makes us better, more challenging, it encourages us to continue growing and give the best of ourselves. In addition, the technology subscription model is a clearly growing sector where everyone will have to find their specialization or differentiation.
We have Grover Care insurance, our damage coverage through which we cover 90% of repair costs in the event of accidental damage in the rental of all our products. So the consumer can also be unconcerned if there is any breakage or damage to their rented device.
EcN: From Grover, what do you think has more weight: a B2B or B2C model? How are your clients?
SA: At the moment, in the Spanish market we have only launched the final consumer service, but we would like to be able to launch the B2B service soon: Grover Business. If we analyze the current job market, we see that hybrid environments and telecommuting are here to stay, and the subscription model for companies is an ideal option for these types of environments. It also offers a lot of flexibility for freelancers or startups that grow very fast, allowing them to be more flexible in the acquisition of their equipment.
At the end consumer level, Grover is for anyone who wants to access the full potential that technology products offer. It is not a service only for technology lovers, since technology is for everyone and we all take advantage of it in some way or another. Either because you need a smartwatch to monitor your heart rate, stay connected with your friends who live abroad or just want to have the latest Smartphone launch. The possibilities are endless and Grover is helpful in each of those cases.
EcN: What are your short-term plans? And long?
SA: We are convinced that Grover has great growth potential and may become the new way of using and enjoying technology. In September 2020, Grover raised 50 million euros a year and multiplied his income by 2.2 in the last 12 months. In fact, from January to August 2020, Grover experienced an average growth of 6.5%, in addition to exceeding more than 100,000 subscribers within the platform. On average, Grover rents 1.5 products for every subscriber registered on the platform. These data show that Grover has great growth potential and we are very optimistic about the opening of the Spanish market, where we expect the model to be well received.
In the short term, our objective is to consolidate our model in those markets in which we have already landed, such as Spain, the United States or the Netherlands, and to continue growing in other markets where we know that our model can have penetration. In the long term we would like to be able to continue growing, expand our catalog and continue to democratize access to technology throughout the world.
