Rent the Runway, the online apparel rental company, recently sealed a pivotal transportation agreement with UPS in August, a move aimed at securing competitive delivery rates and substantial cost savings.
UPS will soon oversee the majority of Rent the Runway’s outbound shipping and home pick-up services, with a gradual transition set to occur over the coming months, as outlined in a September securities filing.
The strategic timing of this partnership positions Rent the Runway to capitalise on reduced rates at the onset of its fiscal year 2024, commencing in November. This is especially crucial, given UPS’s impending 5.9 per cent average rate hike for Ground, Air, and International services on 26th December.
While UPS will manage a substantial portion of their shipments, Rent the Runway continues to explore avenues for enhanced cost-efficiency.
They aim to reduce transportation expenses in fiscal year 2023 and are committed to optimising shipping methods and refining contractual and pricing terms for long-term sustainability.
Additionally, Rent the Runway has found cost savings through ‘live swaps,’ a practice where carriers handle both home deliveries and returns during a single stop.
