Automotive World’s special report on vehicle subscriptions looks at whether the success of the Netflix-style monthly subscription can be replicated in the car industry as consumers seek alternatives to vehicle ownership.
The success of subscription models in sectors such as music and movie streaming, as well as cell phones, has set a clear precedent for the automotive industry, and the landscape of personal vehicle ownership is evolving. A number of innovative automaker subscription models are contributing to this change, including Care by Volvo, Porsche Passport and Mercedes-Benz Collection, as well as independent offerings such as Drover and EVezy.
Subscriptions remove the high upfront costs of a vehicle purchase, and offer flexibility. Often, they include the opportunity for subscribers to experience other vehicles across a brand range, and include maintenance, roadside support, insurance, vehicle delivery as well as extras, such as subscriptions to connected vehicle services.
This report explores the opportunities and challenges of the monthly subscription model as an alternative to car ownership, and whether its success in other sectors can be replicated in the automotive industry.
In this report:
- Executive summary
- Subscriptions could one day make car ownership a 20th century relic
- Vehicle subscription: it’s a lifestyle, says Lynk & CO
- Subscription models important for automakers—but some work better than others
- Could ‘no strings attached’ subscriptions encourage EV uptake?
- Adaptability essential for independent car subscription operators
- As subscription models evolve, the rental sector will need to respond
- For now, emerging markets prefer MaaS to vehicle subscriptions
‘Special report: Netflix for cars – is there a future for vehicle subscriptions?’ opens with an article commissioned exclusively for Automotive World by Joern A. Buss of Oliver Wyman and Robert Bauer and Leslie Chacko of Marsh & McLennan, and presents insight from a range of leading stakeholders, including:
- Boston Consulting Group
- Blinker
- Canoo
- Drover
- Lynk & CO
- Navigant
- Steer EV
- Volkswagen WeShare
- Zuora
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