Like many others straddling the generational line between millennials and elder members of Gen Z, the exterior of my refrigerator serves as a visual archive of my social life—an ever-evolving mosaic of wedding save-the-dates, engagement invites, and celebratory mementos from friends’ latest milestones. Each glossy announcement inevitably sets off a familiar ritual: I open the Nuuly app, a digital treasure chest of rentable fashion, and begin an extended search through its meticulous grid of garments. I spend hours curating potential outfits, adding and reordering dresses within my virtual wardrobe, scrutinizing fabrics, silhouettes, and fits with the precision of a stylist preparing for a runway show. Over time, I have become something of an expert, recognizing particular dresses as they reappear on other wedding guests, and even identifying fellow Nuuly users twirling on dance floors across different celebrations.
Over the last decade, the global fashion industry has undergone significant cultural and ethical scrutiny, particularly aimed at the exploitative structures underpinning fast fashion. Critics have condemned its devastating environmental footprint and the chronic underpayment of the labor force that sustains its affordability. Responding to these concerns, an alternate ethos took root—one that prizes reuse, sustainability, and conscious consumption. Thrifting metamorphosed from a niche necessity into a badge of social awareness. Online marketplaces like Facebook Marketplace attracted over a billion users each month, while resale apps such as Poshmark and Curtsy transformed the once-arduous hunt for pre-loved designer items into a seamless, globally accessible experience. This ideological shift opened the door for a new wave of fashion consumption based on temporary ownership: clothing rental platforms like Nuuly, BNTO, and Pickle, which extend access to premium, high-quality, and trend-conscious apparel at a fraction of traditional retail prices.
Nuuly, a venture under Urban Outfitters’ parent company Urbn, recently crossed a major financial milestone by reporting profitability for the first time this past January—a sign that the rental model is maturing into a sustainable business. Meanwhile, Pickle, often described as a high-end digital evolution of borrowing from a sibling’s wardrobe, now boasts more than 230,000 rentable pieces in circulation, connecting individual closets across the country. BNTO, another competitor that amalgamates clothing rental, resale, and new inventory, raised $15 million in Series A funding earlier this year, signaling strong investor confidence. The venture capital firm Notable, which led the round, succinctly captured the generational sentiment: for Gen Z, fashion is no longer defined merely by affordability but by the spirit of discovery, environmental responsibility, and self-expression. These values animate an industry projected by Future Market Insights to grow from its current $2.6 billion valuation to an estimated $6 billion over the next decade.
According to fashion business professor Shawn Grain Carter of the Fashion Institute of Technology, the act of wearing secondhand or borrowed clothing has undergone a remarkable image transformation. What was once perceived as a sign of financial limitation now carries social prestige and creative cachet. Instead of equating status with ownership of exclusive or designer pieces, younger consumers increasingly equate fashion relevance with adaptability and originality—the ability to assemble bold, photogenic outfits for fleeting appearances on social media, rather than amassing a static collection of brand names.
When Rent the Runway launched in 2009, it pioneered the clothing rental marketplace, catering primarily to professionals and event-goers with a taste for luxury labels. Yet, when the COVID-19 pandemic rendered offices and social gatherings obsolete, its business model faltered. Into this void stepped Nuuly, strategically positioning itself for a younger, style-conscious demographic. By offering a catalog that spans its family of brands—Urban Outfitters, Anthropologie, and Free People—Nuuly provides rental access to fashion that ranges from accessible contemporary wear to mid-luxury items priced in the hundreds. This integrated production ecosystem, Grain Carter notes, gives Nuuly an operational advantage, allowing the company to refine logistics and scale without the supply constraints that often destabilize competitors.
The concept of fashion rental gains further legitimacy when viewed in the broader context of the sharing economy—a system now embedded into daily life. Once-unthinkable forms of shared access have become normalized: travelers routinely inhabit strangers’ homes through Airbnb, and commuters think nothing of being chauffeured by unknown drivers via Uber. Against that backdrop, the idea of wearing a dress previously donned by several other users feels far less intimate or unconventional. As Pickle cofounder and CEO Brian McMahon quips, borrowing someone else’s outfit might be more personal than booking a spare bedroom or riding in a stranger’s car, yet such exchanges now represent a form of modern trust and sustainability in action.
Demographically, this shift is most visible among the young. According to company data, around sixty percent of Pickle’s users belong to Gen Z, while roughly forty percent are millennials—generations united by both economic necessity and environmental concern. Their embrace of the rental mindset extends well beyond fashion: platforms like BabyQuip allow traveling parents to rent strollers and car seats instead of lugging their own, and Tblscape curates rentable tableware and décor for dinner parties and events. Consumer research by GWI found that one in five Americans indicated a preference for renting an outfit for a single occasion, and as of this year, 5 percent currently subscribe to services that deliver clothing, cosmetics, or accessories, with another 12 percent having subscribed previously. While these services serve both men and women, women constitute the overwhelming majority of participants.
On social media, particularly TikTok, users eagerly broadcast their ‘rental hauls’—short video montages that mirror traditional shopping sprees but reflect a distinctly modern paradox. Renting satisfies the psychological thrill of acquisition while aligning with the ‘de-influencing’ movement, which encourages consumers to question impulse buying and practice mindful consumption. The emotional payoff remains—trying on beautiful garments, receiving packages—but without the lingering guilt of adding to an overstuffed closet or contributing to mass production waste.
This fusion of peer influence and practical innovation appears to be measurable in commercial results. Nuuly recently announced that its subscriber base has expanded to roughly 400,000 active monthly users. Pickle, once a small New York start-up, now reports explosive growth—rentals have risen by 195% in Los Angeles and nearly 500% in Miami within a single year. Rent the Runway, rebounding post-pandemic, is doubling its inventory to include versatile categories like everyday workwear, resort attire, and weekend casuals. As of July, it recorded a 13% year-over-year increase in subscribers and generated quarterly revenue surpassing $80 million.
The sharing economy also offers entrepreneurial opportunities for individual users like Isabella De Murguia, a 27-year-old consultant who earned over $25,000 on Pickle last year by leasing pieces from her personal wardrobe. She refers to this unexpected income as her “fun money,” which funds indulgent trips to destinations such as Mykonos. De Murguia’s journey began from a common consumer dilemma: the love of new fashion pieces that, after a single wear, languish unused. Now, instead of allowing garments to gather dust, she reintegrates them into circulation—washing, photographing, and preparing items for the next renter, even resewing delicate pearl embellishments when necessary. Her strategy reflects a simple philosophy: she chooses items that genuinely appeal to her personal taste, trusting that authenticity will attract others, and indeed it has.
Among my own circle, this pattern holds true. Many of my friends have become avid users of Nuuly, and despite our distinctly individual aesthetics, we frequently find ourselves drawn to the same sought-after pieces. Once, while checking reviews before committing to a rental, I stumbled upon a user photo—only to realize it was my best friend, critiquing the very dress I had my eye on. Her feedback steered me toward a wiser choice, and we laughed about the overlap later. With rental platforms offering such breadth and accessibility, it seems only a matter of time before we inadvertently arrive at events dressed as mirror images of one another—though thankfully, at least, we can return the evidence at the end of the month.
Amanda Hoover, a senior correspondent at Business Insider who covers emerging technology and cultural trends, reflects on the digital and social dynamics reshaping consumer habits. The story of clothing rental, at its core, represents more than fashion—it embodies an evolving philosophy of value: a generational redefinition of ownership, identity, and experience in a world where everything from outfits to table settings can now be shared, circulated, and enjoyed anew.
Sourse: https://www.businessinsider.com/gen-z-obsession-renting-everything-clothes-strollers-2025-12
