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Julianalaan 67a2628BC Delft
+31 (0) 15 760 1615
Company Reg.: 66592429VAT: NL856622655B01
HOMIE FACT SHEET
The Circular Economy is a hot topic for businesses, policy makers and academia - a lot of hope is vested in the move from a linear to a circular economy to drive sustainability and a viable economy that generates higher levels of well-being at significantly lower resource costs. To make the circular economy a reality, new innovative start-ups such as Homie are required to drive this change.
BACKGROUND
Homie was founded in 2016 with the aim to significantly reduce the environmental impact associated with domestic appliances, by offering appliances on a Pay-Per-Use basis. The company was founded by Nancy Bocken and Hidde-Jan Lemstra in the pursuit to demonstrate that new sustainable business models can in fact contribute to sustainable consumption and a circular economy, thus putting concept and notions from academic literature (e.g. Tukker, 2004; Bocken et al., 2014) into practice.
BACKGROUND
THE BUSINESS MODEL
For our washing machines and dryerwe follow a ‘Pay Per Use business model’ – full service, no upfront cost and free installment. The user pays when the washing machine and/or dryer is used.
Prices vary depending on howenvironmentally friendly the programme is. The lower the temperature of the wash, and the lower the dryness level of the drying cycle the cheaper the programme.
SCOPE
The name Homie says it all. It is about ‘things used in the home’, and specifically energy-using appliances because it is known that a big part of the environmental impact of home appliances comes from the ‘consumer use phases’ (e.g. running the washing machine).
SCOPE
Homie does not only want to contribute to a circular economy, in which products are maintained well, reused, repaired, remanufactured and eventually recycled. It also wants to encourage ‘sustainable usage’ (aka sustainable consumption) of devices through its pay per use business model, coupled with incentives and information provision about how to best use its products. So next to washing machines and dryers, we have been looking into other devices such as dishwashers and fridges.
THE CUSTOMER BASE
Those who don’t want to ‘own’ and want to be flexible (less stuff, more happiness)
Environmentally conscious customers
Cost conscious customers
While some of the effects of a circular model can only be determined after many years (e.g. will the washing machine last ‘forever’?), other aspects of environmental impact can be assessed such as ‘sustainable consumption’.
ENVIRONMENTAL IMPACT
Our first peer-reviewed journal paper (Bocken et al., 2018) for example showed improvements in the environmental impact of the consumer use phase. The number of washes and the laundry temperature dropped when paying per use: 12-13 a month for Homie users vs. the European average of 13.5 times monthly38.1°C (when starting to pay per use as a Homie customer after a free introductory month) vs. the European average of 43°
ENVIRONMENTAL IMPACT
OUR TRIAL WITH FRIDGES
Our trial with fridges –a competition between 25 student households leasing fridges –showed that the highest electricity consumption measured was 57% higher than the energy consumption in the most energy-efficient house.
This suggests that there is ample scope to help consumers reduce their energy footprint, in addition to offering circular long-lasting appliances.
CO-FOUNDERS
Nancy Bocken
Hidde-Jan Lemstra
Colin Bom
EMPLOYEES
Colin Bom – CEO
Min Zhang – Chief Engineer
Paul Dekker – Chief partnerships
Beau Benerink – Marketing
FUNDING
TU Delft Valorisation Centre –starter fundTU Delft Industrial Design Engineering – demonstrator fundSTW Take-off grant – Supporting academia in spinning off innovative ideas into entrepreneurial practice. The take-off grant supported the development of the Homie business and business model to test its viability and positive impact on the environment.
FUNDING
RECIPSS – As part of the European Research Framework H2020, the European Commission supports European industry in the large-scale build-up and implementation of circular manufacturing systems to support the development of a stable circular economy in the EU. The Research Project “Resource-Efficient Circular Product-Service-Systems” (ReCiPSS), kicked off on June 1st 2018.
ABN Amro
Private investor –expertise consumerelectronics
INVESTORS
Peer reviewed articles related to the Homie work
Bocken, N. M., Mugge, R., Bom, C. A., & Lemstra, H. J. (2018). Pay-per-usebusiness models as a driver for sustainable consumption: Evidence from the case of HOMIE. Journal of cleaner production, 198, 498-510.Bocken, N. M., Bom, C. A., & Lemstra, H. (2017, October). Business-led sustainable consumption strategies: the case of HOMIE. In 18th ERSCP Conference.Manninen, K., Koskela, S., Antikainen, R., Bocken, N., Dahlbo, H., & Aminoff, A. (2018). Do circular economy business models capture intended environmental value propositions?. Journal of Cleaner Production, 171, 413-422.Bocken, N. M. P., Bom, C. A., & Lemstra, H. J. (2017). Business experiments as an approach to drive sustainable consumption: The case of homie. Delft University of Technology, 8, 10.Bocken, N., Boons, F., & Baldassarre, B. (2019). Sustainable business model experimentation by understanding ecologies of business models. Journal of Cleaner Production, 208, 1498-1512.
Master theses related to the Homie work
Florian Wortel: Creating sustainable washing behaviour within a pay-per-usebusiness model
Diana Gonzalez: Internet of Things for Circular Economy
Yihan Zhao: Design IoT Supported User Interventions for Sustainable Washing Usage
Sources
Bocken, N. M., Mugge, R., Bom, C. A., & Lemstra, H. J. (2018). Pay-per-usebusiness models as a driver for sustainable consumption: Evidence from the case of HOMIE. Journal of cleaner production, 198, 498-510.
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of cleaner production, 65, 42-56.
Tukker, A. (2004). Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet. Business strategy and theenvironment, 13(4), 246-260.
