Grover, Subscription Tech on the Reg

Now This could be something. Grover, a German start-up offering customers tech products on monthly, quarterly and yearly subscriptions, just raised more than $42 million in early-stage funding, he company hopes to change consumer behavior toward tech products by making outright purchases unattractive. After signing a partnership agreement with German e-retailer MediaMarkt, the company will focus exclusively on the German market, but could offer their services internationally in the future.

How Would This Work?

The Berlin-based startup that offers “pay-as-you-go” subscriptions to the latest consumer tech as an alternative to owning products outright. Grover wants to be something like a  Netflix for gadgets. It offers individual tech products by monthly, three-monthly or yearly subscription, or via its newly launched “Grover Mix” subscription, which has a fixed monthly price and lets you switch item at any time.

Here in the States we have similar options, like rent to own. This would be less of a sham and more of a return my old iphone and get the new one for a small monthly fee. This would allow us all to remain on the cutting edge with out getting out dated in a few months. Ask me about my $8000 Mac Pro from February. Yeah you know the feeling.

You are afforded some upside protection, should you wish to purchase the item after renting it first. You’re given the option to buy products with 30 percent of your subscription payments to date being deducted from the recommended retail price. For longer rental periods, Grover will also warn you if you are close to reaching 130 percent of the full purchase price and prompt you to consider buying it for €1.

The Final Thought

There are still some serious kinks and logistic issues to iron out and this is still in the infant stages. On top of that it will only be available in Germany, not even in the rest of the EU. Need less to say I would be very in on the Grover Mix option. With their Series A in place this could be a big new thing i wouldn’t be surprised to see a global company take a crack at.  If you havent put it together yet, if Grover’s subscription model becomes compelling enough, purchasing many tech products will become so unattractive buying tech will go the way of the Blockbuster. Stay tuned for more information as it develops.