Joymode

About Joymode

Joymode was established in 2015 by serial entrepreneur Joe Fernandez, along with co-founders Waynn Lue and Keith Walker, to address the challenge of urban living where space is limited and ownership can be a burden. Fernandez, previously known for co-founding the social media analytics company Klout and selling it for a reported $200 million, was inspired by his own experience of living in a small New York City apartment. This firsthand frustration with the constraints of ownership fueled the core concept of Joymode: providing access to products for experiences without the need to purchase and store them.

The company operated on a subscription-based business model, targeting consumers in the Los Angeles area. Members paid a fee, such as an annual $99, to rent from an extensive catalog of over 2,000 unique items. The inventory was diverse, ranging from camping gear and party supplies like karaoke machines to electronics such as video game consoles and movie projectors. Joymode owned all its equipment, differentiating it from peer-to-peer rental platforms, and managed the logistics of delivery and pickup directly to the customer's doorstep. This model was designed to offer convenience and enable a lifestyle focused on experiences rather than possessions.

Joymode secured significant financial backing, starting with a $3 million seed round in 2016 and followed by a substantial $14.4 million Series A round in 2018 led by Naspers Ventures. Despite this funding and a business model that was profitable on a per-reservation basis, the company struggled with scaling its operations and achieving the exponential growth needed to support its cost structure. Founder Joe Fernandez noted that while the idea was popular, user acquisition in its initial Los Angeles market did not grow fast enough to justify expansion. In early 2020, the company laid off a majority of its staff and began liquidating its large inventory. By July 2020, Joymode was acquired by XRC Labs, a retail-focused accelerator, for an undisclosed sum. Following the acquisition, the business was set to pivot, focusing on providing back-end inventory management services for retailers looking to enter the rental market, with Fernandez staying on as an advisor.