In 2019, the FaaS concept was rolled out for test by the Ingka Group as part of IKEA's commitments highlighted in the company's sustainability strategy, particularly its hopes to transition to a circular business model by 2030, using only renewable or recycled raw material. By 2022, there are two created solutions, aimed at two target groups - businesses and individual customers.

According to the EPA, furniture waste generated by Americans in 2017 totaled 12.2 million tons, and 80.2% of it went to landfill. The agency also found that only 0.3% of the furniture waste that was sent to landfill was recovered for recycling.

Taking these figures onto the global scale, these numbers become even more staggering, and that is exactly why one of the leading furniture companies Ikea has come up with the following solution.

Renting furniture can solve the problems of “fast furniture”, which relies on cheaper materials. To test the concept out, the company introduced a limited rollout of IKEA Rental in six markets in 2021: Finland, Sweden, Denmark, Norway, Spain, and Poland. By 2022, the IKEA company is already offering consumers to rent a complete IKEA bedroom, living room, dining room, student room, or workspace at Move & Rent. For businesses, it introduced IKEA RENTAL as a comprehensive solution. Starting from only 1 euro per month as rental payment, the company Ikea has been operating and monetizing the 'lease' element.

The FaaS business model, despite continuing to be tested by the Group, has shown promising results for the industry. According to the circular business designer on Ingka Group’s circular innovation team Kicki Murbeck, refurbishing services are to grow rapidly in the next few years. This is one of the examples showing great ambition to offer scalable, affordable solutions that are good for both people and the planet.