Revolutionizing Car Ownership With Subscription and Shared Mobility Services

Consumers increasingly favor utilitarian approaches to vehicles and are opting for car sharing or other shared mobility services as a viable mobility option, possibly leading to less private-car sales in the long term. These new business models could ultimately cause private car sales volumes to decrease significantly.

Vehicle subscription has proven popular among consumers and investors alike. As this alternative transportation model continues to gain steam, dealers and OEMs could see significant revenue potential with subscription.

1. Convenience

Many consumers are seeking an efficient and flexible alternative to car ownership. Car subscription services like Steer EV offer all-inclusive pricing plans that make switching vehicles and tracking monthly costs simple and affordable.

Shared mobility is revolutionizing urban transportation and shaping how we travel as a society. Offering greater multimodality and convenience, shared mobility could reduce reliance on private cars while simultaneously decreasing emissions in cities.

Automakers are exploring new strategies to take advantage of this trend. They are working with service providers such as car subscription companies to offer mobility-as-a-service to their customers. Furthermore, automakers are developing autonomous vehicle technology which could allow future drivers to simply order a car, hop in it, and drive off towards their destinations without hassle or stress. To discover more on how Zuora can transform your business and create an unrivaled car subscription experience contact us now.

2. Flexibility

Accessing subscription or shared mobility services allows people to experiment with different vehicles (e.g. SUV for ski trips or sedan for city streets) without being saddled with financial liabilities associated with ownership of one that they don’t use regularly.

Shared mobility services provide various options for point-to-point travel, such as carsharing, bicycle sharing and on-demand transit. The shareable transportation market has expanded rapidly with automobile manufacturers, rental car companies and venture-backed startups introducing innovative new solutions.

Shared mobility services utilize various models ranging from membership-based self-service to P2P and for-hire, all designed to offer flexible options that appeal to consumers and drive adoption. These new offerings have revolutionized car ownership as people opt for digital services that provide access to valuable digital services while offering freedom to change modes of transport when needed. Mobility as a service businesses are poised to transform transportation industry while creating significant opportunities for innovative automakers and providers of new mobility services.

3. Value

Car subscription services offer an attractive alternative to vehicle ownership for many consumers. They typically cover all or most costs related to owning the vehicle – insurance, roadside assistance and taxes included – while providing access to digital in-car services and additional value adds not available when owning one directly.

While car dealerships and rental and leasing companies are offering shared mobility services such as MaaS (Mobility as a Service), startups are taking the lead by pioneering innovative services for mobility sharing such as electric scooters, bikes and even car sharing programs.

MaaS is rapidly evolving. Shared mobility solutions may be seen both as incumbent or innovative alternatives to existing core transportation modal options, and classified into five service models: membership-based self-service models, P2P services, non-membership self-service models, for hire services and mass transit systems.

4. Peace of Mind

Subscription or shared mobility services allow people to travel conveniently without the burden of car ownership, complementing robust public transit networks. By making use of them for both business trips and personal travel needs, subscription or shared mobility services decrease vehicle count on roads while simultaneously decreasing emissions from these cars.

Care by Volvo and Flexdrive provide cost-effective car subscription services that make driving new cars accessible without incurring upfront costs and maintenance commitments. Users pay either weekly or monthly access fees and enjoy flexibility to switch vehicles when needed.

Carsharing companies such as Getaround make it simple for consumers to quickly reserve a fully insured car by the hour or day through an app, saving time and effort while making travel simpler than ever before. Research shows that consumers with access to shared mobility services tend to drive less often while choosing public transit or walking and biking more frequently instead.

5. Flexibility

Car subscription programs give customers the flexibility of accessing a vehicle without incurring residual value risk or signing long-term contracts, and can enable customers to switch vehicles often based on their lifestyle and needs.

This new form of mobility is revolutionizing how people travel. Its popularity is increasing rapidly in cities and suburbs with dense populations where transportation needs exist but people don’t necessarily wish or require ownership of cars themselves. Furthermore, such services may even encourage reduced driving as people will only use them when necessary.

These service models that facilitate shared mobility include membership-based self-service (carsharing and ride-hailing), P2P, non-membership offerings and for hire offerings. It’s vital for providers to prioritize user experience while eliminating roadblocks to uptake. At Ridecell, we are doing our part by eliminating obstacles with automation that ensures vehicles are always available on-demand; also providing companies with a flexible platform allowing them to experiment with business models while guaranteeing compliance and sustainability of fleet operations.