BabyQuip is a marketplace platform that was founded in 2016. It is a place where Quality Providers or independent contractors, rent and deliver baby gear that they own to traveling families. Thousands of families are providing baby gear using the BabyQuip platform to various families vising the 250 markets in the US and Canada. In this article, we’ll be exploring the BabyQuip business model in detail. Readers will get in-depth answers to their most demanding questions- “How does BabyQuip work?” and “How does BabyQuip make money?”. The company has set an example in amazing companies led by women for women. By understanding the BabyQuip origin, revenue model, and business model, one can easily attain in-depth knowledge about the company. So, let’s start exploring.
BabyQuip- The Complete Story
It all started in 2012 when Marier moved to her new home in San Francisco and became an Airbnb Superhost. There, she met Kerri Couillard who had just started a baby gear rental business in Santa Fe. She suddenly realized that this was a large and most neglected market for baby gear rentals for families that travel with their children. Although they had very little funds for expansion yet they were driven by their main mission of providing baby gear rental services to traveling families with children. The company works to address the most common family travel challenge as it is very difficult to carry little babies through crowded places while also lugging all the baby gear and other types of equipment necessary to give them (babies) a home-like experience with comfort while traveling. BabyQuip is a simple solution for solving such problems.
BabyQuip Business Model
Before we get started answering the questions like “How does BabyQuip work?” and “How does BabyQuip make money?”, we did want to know first understand the BabyQuip Business Model in detail and then move on to understanding the working and revenue model of BabyQuip.
BabyQuip was founded in 2016 by Fran Marier. She is a serial entrepreneur who also worked as a co-founder & GM of Match.com and founder & CEO of TRISTe. Babyquip is her newest venture right now. Randi Zuckerberg, the CEO at Zuckerberg Media, is an advisor to the company (BbayQuip). The company is a baby gear rental service provider that targets traveling families.
According to the information shared by crowdability.com, 10 million US families have children under age 4 and 90% of these families travel with their children which creates a $150 billion family travel market. BabyQuip is particularly targeting this market to provide baby gear rental services that provide safe, clean, and insured baby gear rental to traveling families. This business model offers an alternative to such families preventing them from lugging heavy equipment like strollers and cribs. Rentees can rent cribs, strollers, high chairs, toys, and car seats. Since the launch of the company in 2016, it has successfully filled 30,000 orders and has generated $4.7 million in revenue.
The platform also offers the best subscription boxes for babies and toddlers. These subscription boxes included:
- Lovevery play kits at $80/ two-months, $120 per three months
- Cratejoy subscription box at $9.99-$79.95/ month
- Little fun club monthly book subscription at $15.95- $24.95 per box
- Think outside boxes at $33.95-$39.95/month
- Literati book club at $9.99/month plus the cost of the book that the customer keeps
- Toucan box at $14.90/month
To know about these subscription boxes in detail, visit the official website.
BabyQuip Independent Quality Providers
BabyQuip Independent Quality Providers are the main face of BabyQuip. THer are the ones who rent, deliver, and set up clean, safe baby gears at hotels, Airbnb, vacation rentals, and private residencies. Sometimes they can even meet the customer at airports to deliver their product.
These Independent Quality Providers are gig-economy parents (moms, dads, or both), retirees, or best friend teams who love being flexible in entrepreneurship. According to the data of the company, mostly women are included in this business of renting.
Let’s take a closer look at these BabyQuip Quality Providers and how they reacted to the Women Gig Economy in 2018 (the data has been taken from BabyQuip’s blog):
- Most of the BabyQuip Providers have been a part of this gig economy business for less than 2 years (about 42%).
- Out of the total quality providers on this platform, 46% are working only with BabyQuip and the rest are doing other side gigs.
- 71% of the BabyQuip Quality Providers say that they would prefer to be an independent contractor rather than an employee.
- 77% want to be a part of the BabyQuip gig economy for 5 years or more as they think that the work is fun.
- 47% of BabyQuip providers are stay-at-home moms.
- Out of this group, 62% are in their 30’s, 16% are in their 20’s, 14% are in their 40’s, and 8% are in the age of 50’s or older.
- It is a highly educated group included in BabyQuip’s gig economy as 77% have earned at least a college degree with 20% with a graduate degree.
BabyQuip providers are mostly parents to small children and they are all well educated. Their education gives a clue as to why most of them have built successful baby gear rental businesses at home and are benefitting from the sales, marketing, and social media training that is provided to these BabyQuip Providers. The company says that its providers are highly collaborative and they readily come forward to help new providers launch their business on BabyQuip.
Who are BabyQuip’s investors?
According to Crunchbase’s information, BabyQuip has 7 investors in total and has raised a total of $3.2 million in 3 funding rounds. The latest funding was raised on March 19, 2020, from a Seed round. The list of these 7 investors are:
- Moai Capital
- GWC Innovator Fund
- Startup Capital Ventures
- Quake Capital Partners
- Rostrum Capital
Out of these seven investors, 2 are leading investors (SeedInvest and Startup Capital Ventures).
BabyQuip has acquired 2 organizations till now. The most recent was Tot Squad Cleaning Service on 31 March 2020. The BabyQuip services are available in more than 400 places in 50 states. The company has partnerships with Booking.com, HomeAway, Wyndham Hotels, and Urbansitter.
How does BabyQuip make money?
BabyQuip is a platform that allows people to earn money on their own terms by renting and delivering their baby’s stuff to another family. By doing this, the rentee family helps the traveling families enjoy their vacations stress-free.
The rentee family is registered as a BabyQuip Independent Quality Provider on the platform. The rentee must pay a US $100 fee to start up with a business on the platform. This fee covers administrative expenses to set up on the platform, website, email, and all the training materials. The company generates its revenue by taking commissions and fees on every exchange that takes place via the BabyQuip platform. It takes a 20 percent commission and a one-time $200 set-up charge as a fee.
How do BabyQuip Quality Providers get paid?
The rentee gets paid through direct deposit and paid upfront, often before he/she (the rentee) delivers the order. It takes approx two business days for the payment to show up in the bank account of the rentee once the customer completes and pays for their reservation.
According to BabyQuip, the company has the highest side gig income opportunities out there especially for all the moms across the world and the second is only to Airbnb hosts.
As per the average data of the platform, the BabyQuip Quality Providers earn over $600 a month. The rentee keeps 80% of the rental and delivery fees and a hundred percent of the tips from each reservation. The rest 20% is kept by BabyQuip.
How does BabyQuip work?
Now that you have understood the BabyQuip business model and how does BabyQuip makes money, we shall move on to answer “How does BabyQuip work?”. Keep reading to explore more about BabyQuip.
How to start a rental business at BabyQuip?
As already said, BbayQuip quality providers are the main face of the company so they are the ones who are helping in running the business and of course the consumers. Now, let’s understand the steps to become a quality provider on the platform:
Step 1: Sign up and join the BabyQuip platform
Step 2: Create your own baby gear or baby equipment rental website
Step 3: Learn about the BabyQuip rental business from the training and support provided by the BabyQuip platform.
Step 4: Develop an entrepreneurial mindset.
Step 5: Prepare the orders and make the deliveries to the orders received through the platform.
BabyQuip has proved that women can be an important voice in the gig economy. The BabyQuip quality providers are mostly stay-at-home moms that enjoy their side hustle. According to them, the work is fulfilling and it allows them to launch & grow their successful business from home, and learn entrepreneurial skills. More companies should come up in the future that help in women empowerment.
If you are willing to launch a platform for a baby equipment rental business similar to BabyQuip. Ncrypted Technologies has the right solutions developed by our capable and innovative workforce. We offer customized and innovative features as per your requirement to let you launch a successful baby equipment rental business platform.
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