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Lumoid, Best Buy's Supposed Gear Rental Partner, Shuts Down

Lumoid, Best Buy's Supposed Gear Rental Partner, Shuts Down
From Gizmodo - December 10, 2017

Lumoid, a four-year-old San Francisco startup which was reportedly partnering with Best Buy to offer try-before-you-buy rental services on products like cameras, audio gear, and fitness trackers, has gone out of business.

Per Recode, company CEO Aarthi Ramamurthy posted to Facebook thanking team members and announcing that Over the last 4 months, we gradually wound down Lumoid, sold off assets and IP, and helped the team transition as best as we could. Ramamurthy said she had already transitioned to working at Facebooks Payments team.

As Recode noted, Lumoid raised several million dollars in venture capital and an additional million in venture debt, as well as secured the partnership with Best Buy in June 2017. At the time, the service was pitched as an experiment to see if retailers could attract customers attention while they were merely considering purchasing an item, such as by allowing them to rent an Apple Watch for $50 a week. Heres how it was supposed to work: Users on the Best Buy website would be able to click a referral link toLumoid, getting 20 percent of the rental price back in credit. If renters liked the item, Lumoid offered customers the chance to apply the credit towards the purchase of a used product, which could also help Best Buy offload their stocks of open-box items.

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