Wow, popular post!
I completely agree that RTR is developing a robust operational model that aligns with its customer promise and business model. My biggest concern is around their warehousing and logistics infrastructure, which I believe Saaket astutely pointed out in an earlier comment. If the value for women is the ability to rent a designer gown at a fractional cost for a special evening, the entirety of the value is lost if the garment does not arrive in time. It appears that they may need to consider beefing up their distribution capabilities as they continue to scale.
That said, I think it’s a great model. Why spend hundreds on a gown you’ll wear once when you can rent one instead?
I wish I’d known about this after the Marketing final. Oy!
This is certainly a creative loophole to the age old challenge of connecting consumers to alcohol through a complex regulatory spider’s web. It’s also interesting that they’ve been able to position themselves as “complementary” instead of threatening. It begs the question, though, of what their competitive advantage will be moving forward aside from their first mover status. Will that be enough to remain number one in this highly coveted space?
Ok, good talk. Now please excuse me while I go download the Drizly app…
Your loyalty for Delta radiates throughout this review! Clearly they are doing a good job of converting some of their target business travelers into true Delta loyalists.
I agree that their business model aligns with a pointed focus on business travelers, who are less price sensitive and looking for a more comfortable experience. Delta consistently rates highly for their leading percentage of on-time flights, another alluring component for business travelers which allows them to charge a premium.
My question regarding Delta would be, do they risk alienating their potential future customer pool? For non business travelers, Delta’s focus on service for business specific customers feels like they have created their own alienating social hierarchy for those outside the “circle”. Is there risk for future business travelers to be disenchanted before they become part of Delta’s target market?