Summary

Electrolux’s Appliances as a Service (AaaS) program is reshaping appliance ownership from one-time purchases to flexible subscriptions that prioritize circularity and sustainability. By addressing high appliance disposal rates among Swedish landlords and expanding to Singapore’s dynamic market, Electrolux leverages IoT technology and a robust subscription platform to offer seamless installation, maintenance, and replacement services. This transformative business model not only reduces e-waste but also helps Electrolux achieve ambitious climate targets while creating recurring revenue and deeper customer engagement. Read on to learn how this program exemplifies the future of circular economy innovation in the appliance industry.
Close-up of the control panel of an energy-efficient washing machine with various wash and eco cycles.

What is Electrolux’s Appliances as a Service (AaaS) Program?

Electrolux launched its Appliances as a Service (AaaS) program on July 14, 2022, aiming to transform traditional appliance ownership into a subscription-based service model. This initiative addresses a critical issue in Sweden, where 68% of landlords unnecessarily discard appliances, contributing to waste and environmental harm.

The program currently operates in Sweden, catering to both business landlords and consumers, as well as in Singapore through the Levande platform. This approach highlights Electrolux’s commitment to circular economy principles by extending the life cycle of appliances and reducing premature disposal.

How Does the AaaS Program Work Across Different Markets?

Electrolux customizes its Appliances as a Service offerings to meet different market needs in Sweden and Singapore, targeting landlords, consumers, and urban renters.

What subscription models are available in these markets?

Sweden B2B (Landlords):

  • Monthly subscriptions covering installation, maintenance, repair, refurbishment, and recycling
  • First major customer: SKB housing company, demonstrating tenant satisfaction and operational benefits

Sweden B2C (Consumers):

  • Subscription for Pure i9 robot vacuum priced at 1 SEK (~10 euro cents) per square meter of living space
  • Launched in November 2018, offering an affordable alternative to ownership

Singapore Levande Platform:

  • Flexible subscriptions starting at S$21.99/month
  • Terms range from 6 months to 6 years with a 48-hour delivery and replacement guarantee
  • Launched in August 2022, providing a seamless digital experience

This tailored approach ensures accessibility and sustainability across different customer segments and geographies.

Stylish green kitchen with Electrolux appliances including fridge, washer, dryer, and vacuum, representing sustainability and modern living.
(Image: Stripe)

What Technology Powers Electrolux’s Circular Appliance Model?

Electrolux leverages advanced technology to enable its circular appliance subscription services, enhancing convenience and sustainability.

Levande Platform:

  • Developed in only 45 days using Stripe infrastructure
  • Manages payments, subscriptions, and flexible term options seamlessly

IoT-Enabled Appliances:

  • Provide remote monitoring and diagnostics
  • Enable predictive maintenance to minimize downtime and extend product life

Customer Mobile App:

  • Allows users to control appliances remotely
  • Automatically triggers dispatch of service kits based on appliance usage data

This integration of technology ensures a smooth customer journey and supports the circular economy by maximizing appliance uptime and reducing waste.

How is the Program Driving Environmental Impact and Sustainability?

Electrolux’s AaaS program has significantly reduced unnecessary appliance disposal by 68% among Swedish landlords, helping curb waste and emissions.

Singapore’s program targets a massive 60,000 tons per year reduction in electronic waste, aligned with circular economy priorities such as extending product life, recovering materials, and preventing waste.

This initiative integrates into Electrolux’s broader “For the Better 2030” sustainability framework, which has successfully surpassed Scope 1 & 2 emissions reduction targets of 82% and met Scope 3 goals early with a 25% reduction. The company aims for climate-neutral operations and 35% recycled materials usage by 2030.

Father and daughter in a modern laundry room with Electrolux washer and dryer, symbolizing circularity and everyday family life.
(Image: Electrolux Group)

What Does the Research Say About Market Reception?

The Vinnova-funded research project, "White Goods as a Service for Public Landlords," conducted between November 2018 and June 2019, involved partners like Electrolux, SKB, Förvaltaren, and ByggVesta. It revealed that about half of Sweden’s largest 23 housing companies hold positive or neutral views on appliance subscription services.

Electrolux’s collaboration with SKB is a prime example of successful program deployment that benefits landlords, tenants, and the environment.

What is the Business Model Innovation Behind AaaS?

Electrolux’s AaaS program shifts the traditional one-time sales transaction toward a recurring revenue model, combining appliance provisioning with comprehensive end-to-end service delivery including maintenance, repair, and refurbishment.

This evolution embodies a fundamental circular economy transformation within the appliance industry, encouraging longer product lifecycles, resource efficiency, and customer loyalty.

What’s Next? Market Expansion and Industry Recognition

The program has continued to expand in Singapore with a growing subscriber base and plans for further rollout across Europe.

Electrolux’s efforts have earned prestigious recognition, including EcoVadis Gold status and a CDP A-Score, confirming the company’s leadership in sustainability. They have also been identified as a “Transformer” in the cooling industry for driving innovation toward circular business models.

FAQs

What is the Appliances as a Service (AaaS) model and how does Electrolux implement it?

The Appliances as a Service (AaaS) model offers appliances through a subscription service rather than traditional ownership. Electrolux implements this by providing monthly subscription plans for landlords and consumers that cover appliance installation, maintenance, repair, refurbishment, and recycling, ensuring seamless user experience and extended product life.

How does Electrolux’s AaaS program reduce appliance waste and support sustainability goals?

  • Waste reduction: Achieves 68% reduction in unnecessary appliance disposal among Swedish landlords.
  • E-waste prevention: Targets 60,000 tons/year reduction in Singapore.
  • Sustainability integration: Contributes to Electrolux’s “For the Better 2030” climate and material recycling targets.

What are the subscription options available for landlords and consumers in Sweden and Singapore?

  • Sweden B2B: Monthly subscriptions for landlords including service and lifecycle management.
  • Sweden B2C: Pure i9 robot vacuum subscription priced per square meter of living space.
  • Singapore Levande: Flexible subscription plans starting at S$21.99/month, with terms from 6 months to 6 years and 48-hour replacement guarantee.

How does IoT technology enhance the Electrolux AaaS customer experience?

IoT integration enables remote monitoring and predictive maintenance, reducing appliance downtime and extending lifespan. It supports automatic detection of service needs and dispatch of maintenance kits, enhancing reliability and convenience.

What were the key findings from the Vinnova White Goods as a Service research project?

The Vinnova project showed that approximately half of the largest Swedish housing companies have a positive or neutral attitude toward appliance-as-a-service models, indicating strong market potential and acceptance among key stakeholders.

How does Electrolux’s AaaS model impact the company’s business revenue and product lifecycle?

The model creates recurring revenue streams from subscription fees, moving away from one-time product sales. It extends product lifecycles through maintenance and refurbishment, supporting circular economy principles and improving customer retention.

What are the future expansion plans for Electrolux’s AaaS program globally?

Electrolux plans continued expansion in Europe while growing its subscriber base in Singapore. The company aims to broaden its AaaS footprint, driven by sustainability goals and market demand for circular appliance solutions.