Major UK electrical firm targets ‘Generation Rent’ customers by hiring out washing machines for £2-a-week

• AO World launched it to ‘cleanse’ the high street of expensive alternatives
• John Roberts, the firms founder, said he wanted to offer ‘subscription’ contracts
• The new offer will be tested with ‘thousands’ of low income families 

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One of Britain’s biggest electrical firms is targeting ‘Generation Rent’ with a scheme to rent out washing machines – for just £2 a week.

Online delivery firm AO World says the scheme will cleanse the high street of expensive alternatives. The firm’s founder, John Roberts, said he wants to offer ‘subscription’ contracts for more electrical and technology products in future to cater for cash-squeezed millennials and the less well-off.

He said the new offer will be tested with ‘thousands’ of low-income families in the coming weeks to gauge how many can keep up the payments.

Online delivery firm AO World says the scheme will cleanse the high street of expensive alternatives

The cost would compare with up to £10 a week on comparable products at other ‘rent-to-buy’ operators, which include Brighthouse and PerfectHome, and would also undercut high cost credit retailers such as Very.co.uk, he said. The £2 charge, payable by direct debit, will include the cost of the machine and a five-year warranty that would mean the customer would never have to pay for any repairs.

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He said that also compared favourably with the cost of a laundrette, which was as much as £7.50 for a single visit.

‘I’m always looking at the structural challenges and thinking about long-term trends. So we’re trying out rental. Millennials rent everything,’ said Roberts, whose firm’s turnover is approaching £1 billion. ‘Can we get you all of your electrical items on a subscription model and can we make money out of it?’

The cost would compare with up to £10 a week on comparable products at other ‘rent-to-buy’ operators, which include Brighthouse and PerfectHome, and would also undercut high cost credit retailers such as Very.co.uk, he said

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