Rent the Runway, a clothing rental service known for its designer dresses and event outfits, is making a bold bet on the future of retail. The company is expanding beyond its subscription rental model and testing a new marketplace and advertising platform to generate new revenue streams. The move comes at a crucial time as the online clothing rental market is expected to reach a record $2.8 billion in 2026, driven by consumers' preferences towards ownership. However, competition is intensifying, with established companies like Nuuly, Armoire, and Stitchfix moving into fashion discovery, personalization, and apparel subscriptions. Technology, especially artificial intelligence, is being used to enhance personalization and merchandising, and could result in increased basket size, repeat spending, and loyalty for customers.