The Automotive-Flat Rate

The Automotive-Flat Rate

Even sectors that you wouldn’t associate with subscription business models at first sight are moving towards subscription. Increasing numbers of automobile manufacturers have been experimenting with monthly fixed rates for their models.

With Porsche USA’s Passport Program customers can drive a different Porsche model every day for 2,000 dollars a month – a Cayenne on Monday and a 911 convertible at the weekend. Cadillac’s BOOK platform allows users to apply for a membership giving access to luxury cars, Mercedes-Benz has started the ‘Mercedes me Flexexperience’ pilot project, and in Germany Volvo has been offering ‘Care by Volvo’, a comprehensive care-free package subscription.

That idea that automotive-subscriptions may have a future has been supported by a survey carried out by the Nurnberg-based market researcher Puls:

For the Netflix generation in particular, owning a private car is no longer important. At the same time, however, willingness to subscribe to a car is growing.

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Subscription Management Report 2020 herunterladen