Canadian Peer-to-Peer Clothing Rental Company Rax Is Expanding to the U.S.

Marley Alles began her career in accounting, believing she wanted to work at a large company. But once she reached that goal, she quickly realised it wasn't the fulfilling path she expected.

She began exploring other interests, delving into startups through podcasts and books. Still, she didn't envision building a startup until the summer when several of her friends got married — and she found herself spending thousands of dollars on bridesmaid dresses and bachelorette outfits. One day, a friend asked to borrow one of her dresses. "I was like, 'yeah, for sure, take it,'" she recalled. "And then I thought, 'how can this be done on a larger scale?'"

With many expensive dresses sitting unused in her closet — too valuable to sell but unlikely to be worn again — Alles saw an opportunity. "That's what led me, long story short, to create Rax," she said.

Rax launched earlier this year as a peer-to-peer clothing rental marketplace. The platform does not own any inventory; instead, users browse listings and rent clothing items directly from others on the app. Alles self-funded the platform's development, coded the app, and officially launched it without external investment. Her initial customers were friends and family, with additional users joining through word of mouth. She leaned heavily into "building in public," sharing her journey online to build an early community. Today, the app has around 5,000 users.

Rax is one of the first platforms of its kind to launch in Toronto. It draws comparisons to Rent the Runway, Pickle in New York, and Europe's By Rotation. Clothing rental — much like secondhand shopping — has gained momentum as a more sustainable approach to fashion consumption.

"It's driving the circularity of fashion," Alles said.

What sets Rax apart is its long-term rental option. "On our platform, you can rent up to six months," she explained. "Competitor platforms offer daily rentals, so costs rise quickly if you want something for a multi-week vacation or a winter jacket for the season."

At TechCrunch Disrupt in October, Rax announced its expansion into the U.S. market. Alles, a longtime TechCrunch fan, applied to the Battlefield competition and won the top consumer pitch award.

She didn't expect to win. "There were so many companies with thousands or hundreds of thousands of users; some had raised around $20 million in my category, and one had the lead actors from Silicon Valley," she said.

The experience, she noted, was "awesome." She visited every startup booth, introduced herself to founders, attended sessions, and networked extensively. One major lesson she learned was the importance of in-person connection for building community and support.

With Disrupt behind her, Alles says Rax plans to expand across New York and develop a rental service platform for fashion designers and retailers looking to offer rental options to customers.

"We have the technology, we have the audience," she said. She added that brands are increasingly adopting sustainable practices, and companies like Rax make that transition easier. "I think things are getting better and people are becoming more aware of their impact."