Electrolux partners with Stripe to create a subscription service for home appliances
The 100-year-old industry leader is working with Stripe to change the way people own appliances.
For most of the 100-plus years Electrolux has been in business, appliance ownership has followed a simple model: purchase, use, discard. While successful, it left consumers trapped owning appliances past the point they were ready for an upgrade, and also clogged landfills with items that might have found new homes on the secondhand market.
Today, Electrolux—one of the world’s largest appliance companies—is changing that. Powered by Stripe, it has built Levande, an all-in-one appliance subscription platform available now in beta in Singapore. Levande empowers consumers to change appliances as their household needs evolve over time, while also reducing electronic waste.
A new ownership model
Levande saves consumers the upfront cost of buying an appliance outright—whether it’s a washing machine, a wine cabinet, a refrigerator, or a half-dozen other home appliances. Subscribers pick the appliance that fits their need, subscribe to a plan for a fixed monthly fee (starting from S$21.99/month for a washer dryer), and get the appliance delivered and set up within 48 hours. They can upgrade the appliance or cancel the subscription at any time.
The service includes maintenance to ensure appliances last longer, and offers the option to subscribe or buy refurbished products. Singapore handles about 60,000 tons of electronic waste each year, the equivalent of each Singaporean discarding 70 mobile phones. With the subscription model, consumers are less likely to have a need to throw away unwanted appliances and, used appliances are more likely to find a second home.
Powering subscriptions with Stripe
Electrolux wanted to develop a recurring relationship with its Levande customers. To do this, the team built a subscription platform powered by Stripe Billing, which made it easy to implement and manage ongoing subscription payments. While a new business model can take months to integrate, Levande was up and running in 45 days.
Electrolux has gained real-time visibility through the Stripe Dashboard into subscription growth across all sales channels. Additionally, with the implementation of Stripe Radar—Stripe’s fraud-prevention solution—Electrolux has experienced zero dispute and fraud cases during Levande’s first five months.
“By getting our subscription model right, and tackling fraud effectively, we are able to create a seamless experience for our customers and therefore build trust and effective ongoing relationships. We are excited to work with Stripe to bring this service to market, and make it easy for Singaporeans to have more choice and flexibility with their home appliances,” said Gaurav Julka, head of appliance as a service for APAC and MEA at Electrolux.
The number of Levande subscribers has grown steadily since the service was introduced, and Electrolux is planning to offer it in new markets with Stripe.
“It’s exceptional for a global appliance company with years of history to reinvent itself, and we’re thrilled to see the innovation starting from Singapore. We are proud to support Electrolux in its business transformation, quickly bringing to market an eco-friendly service which transforms consumers’ relationships with appliances and scaling it globally,” said Sarita Singh, managing director for Southeast Asia at Stripe.