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 Electrolux’s Appliances as a Service program and when did it launch?

Electrolux launched its Appliances as a Service (AaaS) program on July 14, 2022, transforming traditional appliance ownership into a subscription-based service model. The initiative addresses a critical waste issue in Sweden where 68% of landlords unnecessarily discard appliances, contributing to environmental harm. Currently operating in Sweden for both business landlords and consumers, and in Singapore through the Levande platform, AaaS exemplifies Electrolux’s commitment to circular economy principles by extending appliance lifecycles and reducing premature disposal through comprehensive service delivery including installation, maintenance, repair, refurbishment, and recycling.

How does Electrolux customize its Appliances as a Service offerings across different markets?

Electrolux tailors AaaS to meet distinct market needs across geographies and customer segments. In Sweden’s B2B market, landlords receive monthly subscriptions covering full lifecycle services with SKB housing company as the first major customer demonstrating tenant satisfaction and operational benefits. Sweden’s B2C offering launched in November 2018 features the Pure i9 robot vacuum at 1 SEK (~10 euro cents) per square meter of living space, providing affordable ownership alternatives. Singapore’s Levande platform launched in August 2022 offers flexible subscriptions starting at S$21.99/month with terms from 6 months to 6 years and 48-hour delivery and replacement guarantees, ensuring accessibility and sustainability across diverse customer segments.

What technology infrastructure enables Electrolux’s circular appliance subscription model?

Electrolux leverages advanced technology across multiple layers to power its AaaS offerings. The Levande platform was developed in just 45 days using Stripe infrastructure, managing payments, subscriptions, and flexible term options seamlessly. IoT-enabled appliances provide remote monitoring and diagnostics enabling predictive maintenance to minimize downtime and extend product life. Customer mobile apps allow users to control appliances remotely and automatically trigger dispatch of service kits based on appliance usage data. This integrated technology ecosystem ensures smooth customer journeys while supporting circular economy principles by maximizing appliance uptime, reducing waste, and enabling data-driven service optimization.

What environmental impact and sustainability achievements has Electrolux’s AaaS program delivered?

Electrolux’s AaaS program delivers measurable environmental benefits aligned with ambitious corporate sustainability targets. The program has reduced unnecessary appliance disposal by 68% among Swedish landlords, significantly curbing waste and emissions. Singapore’s initiative targets a massive 60,000 tons per year reduction in electronic waste through extended product life, material recovery, and waste prevention. These achievements integrate into Electrolux’s broader “For the Better 2030” sustainability framework, which has successfully surpassed Scope 1 and 2 emissions reduction targets with 82% reduction and met Scope 3 goals early with 25% reduction. The company aims for climate-neutral operations and 35% recycled materials usage by 2030, earning prestigious recognition including EcoVadis Gold status and CDP A-Score.

What business model innovation does Electrolux’s AaaS represent and what can other brands learn?

Electrolux’s AaaS program represents a fundamental shift from one-time sales transactions to recurring revenue models combining appliance provisioning with comprehensive end-to-end service delivery. This transformation embodies circular economy principles within the appliance industry by encouraging longer product lifecycles, resource efficiency, and customer loyalty. Research from the Vinnova-funded project involving SKB, Förvaltaren, and ByggVesta revealed that about half of Sweden’s largest 23 housing companies hold positive or neutral views on appliance subscription services. The program continues expanding in Singapore with growing subscriber base and plans for European rollout, earning Electrolux recognition as a “Transformer” in the cooling industry. Brands exploring similar product-as-a-service models can assess their circular readiness and discover implementation strategies at koorvi.com.