The subscription value story is different for every consumer. The most appealing aspects are that maintenance is included, the car is managed for you, the commitment is flexible, and one simple price covers everything but fuel. Based on these factors, around half of consumers tend to be interested in subscription, a result confirmed by thousands of consumers across multiple surveys over several years.
Consumer research is all very well, but what happens in practice when consumers try a vehicle subscription? In short, they love it, and we have seen glowing reviews across various service providers to prove it.
Just as we struggle to calibrate what can be achieved in a short period, some are often too quick to judge what will or will not work. In fact, the brief history of vehicle subscription has and continues to deliver numerous successes.
Porsche’s continued futuristic perspective is setting a new consumer-centric standard for the industry, introducing new flavors of its Porsche Drive program, which now includes multivehicle subscription, single-vehicle subscription and rental. Volvo saw increased demand for its all-in-one Care by Volvo program in August and announced the expansion of the service in the U.K. In addition, in Missouri, Jim Butler Auto Group’s single-vehicle subscription program driveBlackTie has become a cash-positive business.
A challenge for nonbelievers is that the full set of facts is not publicly available. We’re aware of more than five auto manufacturers interested in adding new subscription services as well as new entrants seeing serious levels of investment. Meanwhile, those that find success and profits in subscription are not necessarily keen to share the secrets of their success. Finally, it can be hard for outside observers to differentiate between experiments and early movement toward scaling.
In fact, we strongly believe the interest in simple subscription and user-friendly rental products will only continue to grow. In particular, we’ll start to see the gradual rollout of more mass-market options using the single-vehicle model at price points compelling to a wide consumer range, making it easier for consumers to acquire the transportation they need during times of uncertainty.