Happiest Baby's Solution for $1.7K Smart Crib: Rent It

Sleep is a precious resource to new parents, so who wouldn't want a smart bassinet that has all kinds of bells and whistles to help soothe babies, allowing everyone to grab a few extra winks? But babies are also expensive, and dropping $1,700 on a crib is out of a lot of budgets. The Wall Street Journal takes a look at how Happiest Baby, the company charging that hefty price for its Snoo smart bassinet, is looking to create a rental system that extends the life of their techy sleepers beyond a single family. To scale this idea, they are partnering with big companies to offer it as a perk to new parents (to help their employees come to work less sleepy).

"The goal was not that people would use this for six months and then throw it away," says Harvey Karp, a pediatrician and company founder. "The goal was that people would rent the beds. That was always the business plan." Safety also factors in—the Snoo was recognized by the FDA as a device that helps babies safely sleep on their backs (reducing the risk of SIDS), and Happies Baby is working with insurance agencies to subsidize rental costs. While rentals of the Snoo are available for $159 per month, some families still opt to purchase it, knowing it has resale value. In fact, the secondhand market is so strong, the company created a premium app as a new source of revenue from their secondhand customers.

At $19.99 per month, the app offers sleep data and controls some parts of the bassinet—and secondhand buyers must pay for it, unlike those buy the cribs new (or rent them) from an authorized dealer. That has triggered what the New York Times calls "a firestorm of parental outrage." The Journal speaks to customers who factored in resale to the hefty upfront cost and worry that the app is driving down resale prices. "My anger and frustration comes from paying full price for the Snoo and Happiest Baby changing the deal that we signed up for," one parent says.

story continues below

More competition may be coming for Happiest Baby, Newsweek reports, with the pending release of a new smart bassinet on the block. While it's still expensive at $800, the Elvie Rise acts as both a bassinet and bouncer, with many of the same soothing features of the Snoo. (Baby food pouches are booming, as are worries.)