In developed markets like the UK and the US, subscription-based ownership models have already crossed 10% of monthly household incomes. We are now subscribing for literally everything, from mobile phone packages to even shaving blades…Dollar Shave Club, anyone? Not to be outdone, the automotive industry is responding by developing its own unique, customized subscription offerings.
WHO WANTS CAR SUBSCRIPTION?
They seem tailor-made for groups like new immigrants, expats, and millennials who want simple, economical, hassle-free temporary mobility solutions with easy cancellation and return policies. They appear made-to-order for vehicle enthusiasts who are keen on trying out a new car every month, without necessarily burning a hole in their pockets. And, finally, they seem ideal for the average customer who would, one imagines, be pleased to avoid dealing with cumbersome car ownership/rental/lease processes.
WHAT IS THE NEED FOR A CAR SUBSCRIPTION?
In this, it fulfills a long, unmet need since duration’s of other formats span minutes/hours (carsharing), hours/days (rentals), 2-3 years (leasing), and 3 years to a lifetime (outright purchase).
Not only does the single bill cover the cost of vehicle fees but it also covers registration, warranty, insurance, delivery, maintenance and repair services, and concierge services.
Early invitees to the feast were Verizon, Netflix, Spotify, and Amazon Prime and now it’s time for newer guests like Canvas, Passport, and Flexperience. Together, they’re serving up the final course: a global, on-demand subscription economy.