Founded in Germany in 2015 by Michael Cassau, Grover facilitates flexible access to consumer electronics. Grover offers a diverse inventory of electronic products for rent. Customers agree to a rental contract of 1, 3, 6 or 12 months. After the agreed rental period, customers can either extend the contract, buy the product or send it back to Grover. Returned products are quality checked and if necessary repaired or refurbished before being passed on to the next customer.

53.6 Mmt (million metric tons) of electronic waste (e-waste) was generated in 2019 according to the UN’s Global E-waste Monitor report. That is on an average 7.3 kg per capita. According to the report, by 2030 global e-waste is predicted to reach 74 Mmt per year, due to higher electric and electronic consumption rates, shorter lifecycles and limited repair options. E-waste contains several toxic additives and hazardous but also valuable materials. However, in 2019, only 9.3 Mmt, thus 17.4 percent of e-waste, was officially documented as collected and recycled. Unused devices are also a problem. A YouGov survey found the following:

· 1 in 3 people in Germany have 3-5 unused technical devices, especially smart phones and computer/laptops, at home 

· The main reason for holding on to devices is fear of what will happen to stored personal data

Grover offers both private customers and businesses a tech product subscription. Subscribers have access to over 3000 (as of October 2021) electronic devices, including smartphones, laptops, virtual reality (VR) gear, wearables and smart home appliances on a flexible monthly rental basis. A subscription can be 1-,3-,6- or 12-months with most customers opting for a 12-month subscription. Users choose between keeping, switching, buying or returning products at the end of the original subscription period. In addition, 90 percent of the cost of any damage during the subscription period is covered by Grover.

Returned products are refurbished to ‘as new’ condition and recirculated. Personal data is professionally cleared from the device. On average a device is used by 3-4 customers before it reaches the end of its life with Grover. After that Grover either resells/donates the product or reuses/recycles its materials.

In autumn 2021 Grover entered the US market after operating in Germany, Austria, the Netherlands and Spain. Generally Grover is an online service accessible through the website GROVER.COM. But in Germany its services are also available through an offline partner network of over 500 stores which includes the electronics retail group MediaMarktSaturn. Through this network customers can rent the product in store and take it home immediately, without waiting for delivery

By October 2021 Grover said it had circulated almost 475,000 devices, equivalent to 1,400 tonnes of e-waste if only used once. Its business model of renting out tech products to several users across a product’s life cycle allows maximum value to be extracted from each product and hence reduces e-waste. In 2020 147,000 of Grover devices had been refurbished and re-circulated.

Grover’s business model allows to serve more people with fewer products in comparison to the general purchasing model. Grover products are reused rather than just stored away in a drawer somewhere never to be used again by its owners. In April 2021 Grover had 150,000 subscribers.

The reasons above make the rental scheme attractive from a circular economic point of view. But even less- or non-environmentally conscious customers appear to like the rental approach and hence are becoming more circular in their consumption. Grover’s rental offer removes the need for upfront capital for a purchase. It brings more financial flexibility in comparison to a purchase on credit, and the customer is not obliged to keep the used device as is normally the case at the end of a credit payment plan

In July 2021 Grover had secured over $1 billion (USD) in equity and asset backed financing, and plans to increase circulation from 475,000 devices (2021) to 5 million by 2024. Grover claims that this will avoid 24,000 tonnes of e-waste by 2024. The investment received is considered the largest ever financing round for a start-up in the circular economy space.

According to Forbes (July 2021) funding will be provided to a special purpose entity that is set up to acquire and own the electronic products that Grover’s customers subscribe to. The structure that separates ownership of the assets from Grover’s subscription platform, allows Grover to focus on development of services, customer acquisition and international expansion. 

Critics could say that Grover encourages and supports short term usage of the latest tech product. But on the flip side it also provides a platform for customers who are looking for the second newest/cheaper option and are happy to reuse a product for that reason. In addition, Grover could use its market power to encourage tech companies to produce more durable products. Grover could further demand that tech companies produce items that can be easily dismantled in order to provide non-virgin materials for new products. It would be great to see Grover help accelerate the circular approach and use its growing market power to influence tech brands. It could provide data on ease of repair, how long products last and whether they can be dismantled and stripped of their materials and hence reduce the use of virgin materials.