7 companies advancing the circular economy by selling products as a service

Excerpts from an article by Anya Khalamayzer in GreenBiz

The “performance economy,” as defined by the Ellen MacArthur Foundation, describes a business model in which manufacturers retain control over products throughout their life cycles and handle their maintenance and recovery, rather than saddling customers with those responsibilities.

Offering products “as a service” is also a tenet of the circular economy because it transforms the concept of ownership and encourages people to rethink how a “thing” is used over its lifetime.

Manufacturers benefit by establishing a steady stream of revenue related to a single product and potentially keeping them in circulation longer, which saves on energy, materials and other resources associated with the manufacturing process. Customers benefit because they only pay for what they need. Both sides benefit from a more active, ongoing relationship.

German company MAN Truck & Bus is a great example.A leading international supplier of commercial and transport vehicles to businesses, it offers support and advice with vehicle design for fleets, operations, infrastructure, and service and maintenance. Late last year, MAN rolled out a data-driven service to assist commercial truck and bus fleets with the transition to low-carbon transportation.

Others on the list include Alstom, BMW, CHP, Grundfos, Michelin, and Steelcase. Read the full article here.

Learn how Zuora helps companies from all industries succeed with “as-a-service” business models.

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