Dutch company Bundles introduced a pay-per-wash business model for washing machines. Households pay per laundry and receive tips and tools to lower their washing expenses and improve washing results - through a mobile app.
The start-up installs Miele washing machines at the customer’s home. Miele currently manufactures sustainable washing machines and dryers. Together with the sustainable production, the company points out how easy it is to reuse the machines and the possibilities to recycle machine parts. Through its collaboration with Bundles, Miele is stimulated to design more circular (ungradable, disassembling, long lifespan, etc.), in order to reduce the costs of the washsubscription. Bundles and Miele will ensure that the machines will get a new lease of life after their initial lifespan. However, Bundles does more than simply renting and servicing washing machines.
Product as a service
Pay-for-performance schemes stimulate the usage of raw materials and are for that reason a boost for the circular economy. Buying a product the traditional way disrupts the circular opportunities of a product. So you do not own a Bundle washing machine, but part of a wider service: cleaning your clothes in a cost effective and sustainable manner. To achieve this, Bundles has launched the Was-app which gives you tips on how to conserve energy, water and soap. Miele washing machines are connected to the internet and therefore are able to search for the most effective proportion between the washing load and amount of soap.
Savings that stack up
Due to the long life of the devices Bundles uses more than 2,000 disposable devices were saved togethe with more than 1,000 users. Bundles cusomters also save an average of 91 kWh of energy per year, more than 10 liters of detergent andmore than 3,000 liters of water through efficient equipment and advice. That equals 220 tons of CO2 or a total of more than 12,000 trees that grow for one year and absorb CO2.
Optimizing product use by connecting the product to the web and apps is the future, according to Bundles. The software can also be linked to kitchen equipment, boilers and solar panels. Specifically products with high costs of usage and high service expenses are applicable to the upgrade market. In the end, Bundles’ can relay their data back to the manufacturer, who can use it as a source to further develop their products.
The Best Practices
Holland Circular Hotspot (HCH) wants to support international cooperation on the circular economy, with the aim of creating business opportunities and promoting the exchange of knowledge and innovation. In the magazine Circular Is Going Global - Join Holland's Flow you can read which circular best practices the Netherlands has to offer.