AO World trials rental service, mulls expansion to in-home services

1689
AO rental
// AO World begins trial of rental service
// Customers can rent white goods for as little as £2 per week
// Electrical retailer also considering introducing repair services into customer’s homes

AO World has started offering white goods to its customers for as little as £2 per week as part of a trial of a new rental service.

The online electricals retailer has partnered with housing associations in England and Scotland for the trial and will expand the service if the pilot proves successful.

The rental service allows customers to have products such as an 8kg Candy washing machine delivered to customers from £2 per week, and includes insurance, repairs and the recycling of any old appliances.

AO World said that after five years, customers can replace the washing machine with a new one and have the old one sent for refurbishment or recycling.

Customers are able to cancel the rental whenever they like and also arrange for collection of the washing machine for free.

“It’s a straightforward £2 per week payment with no up-front charges and no catches so that customers know exactly what they are paying for their washing machine from the start,” AO World chief executive John Roberts told Retail Week.

“It’s a totally different approach to the current rental offers out there and I believe that we’re doing better.

“Our advantage is that we own most of the supply chain. This keeps our costs low, meaning we can save customers hundreds of pounds a year when it comes to renting electrical essentials.

“Of course, rental has appeal for a broad range of customers, not just those on lower incomes. It’s early days for us but I’m optimistic about the potential.”

Roberts also hinted that AO World could introduce repair services into customer’s homes, and was looking into the logistical requirements around this.

Click here to sign up to Retail Gazette‘s free daily email newsletter