A startup that specializes in refurbished electronic devices is dreaming big after turning a profit in Europe for the first time.
TechCrunch reported on Back Market's plans to expand upon its core business of selling refurbished smartphones with initiatives like branching out to electronic game systems.
Back Market's ambitious new enterprises come after a hectic few years. After raising nearly a billion dollars in the zero-interest rate environment in 2021, the company pulled back and had layoffs in late 2022, per TechCrunch.
That's why the rebound is exciting news. Refurbished electronic devices are not only a great value for consumers selling and buying them, but they can also do a lot of good for the environment.
Back Market's website claims it has already saved over one million tons of carbon pollution. The company commissioned ADEME, the French Environment and Energy Management Agency, to study the impact.
Per ADEME, buying refurbished tech instead of new reduces carbon pollution by 89.6%, uses 94.5% less water, cuts down on e-waste by 92.6%, and lowers raw material use by 94.1%.
While it's refreshing to hear that Apple reduced the carbon impact of its most recent iPhone by 30%, starting from scratch will always require more resources.
That's not even getting into keeping old products from methane-producing landfills that warm the planet. For consumers, selling your old electronics is just one of many ways to get rid of them responsibly.
The value proposition for consumers stretches beyond benefits to the planet. As TechCrunch noted, tech improvements are becoming "incremental," which begs the question as to why spend so much for them.
🗣️ If you buy refurbished products, what's your primary motivation?
🔘 Saving money 💰
🔘 Salvaging old stuff 🗑️
🔘 Helping the planet 🌎
🔘 I don't buy refurbished products 🚫
🗳️ Click your choice to see results and speak your mind
In reality, Back Market doesn't directly repair electronics. It acts as a connector between consumers and companies that refurbish devices.
The company's recent partnership with Sony to sell refurbished PlayStations is a prime example. Increasingly, gamers are becoming aware that they can sell old systems or acquire hard-to-find models.
Along those lines, the startup is partnering with telecom companies to incentivize consumers to opt for refurbished models.
The company takes inspiration from the used car market and envisions a future where pre-owned will be a fixture for electronics.
Founder Hug de Larauze told TechCrunch that profitability in Europe "is a big milestone," and that the company is shaking the reputation of the "impact company" label.
"Well it's not the case, it's actually making money," de Larauze noted.
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