The Emerging Car Subscription Model

The Emerging Car Subscription Model

Steer

Car ownership is quickly going the way of the dodo bird. And while it may seem strange to think of a world without car ownership, that's exactly what we're moving toward. 

There are many reasons for this shift: The population is growing; urban areas are expanding, and more people than ever before are living in cities. With these factors in play, owning a car simply isn't a practical option for many.

But what if there was another way? What if you could subscribe to a car service that would give you access to vehicles whenever you needed them? 

Companies like Steer EV are making it possible for people to invest in the monthly subscription as and when they see fit. 

This is an incredible opportunity for those who want to maximize their savings and get around town without having to worry about maintenance costs or insurance premiums. 

Urban Phenomenon 

The EV car subscription model is becoming a reality as more and more people are opting for a sustainable and cost-efficient lifestyle. The emerging car subscription model is gaining popularity in urban areas. 

In the past, owning a vehicle was considered a luxury, and owning your own car was a symbol of wealth. However, in today’s world, owning a car has become less convenient than it once was. City life has changed dramatically over the last few years and there are many reasons why owning a vehicle is no longer a necessity or demand. 

Mobility as a Service (MaaS) is an emerging trend that has been gaining popularity in cities across the globe. It is defined as “the supply of mobility services to individuals or groups on demand via mobile technology.” In other words, it is an alternative way to use transportation without owning or leasing your own vehicle. 

MaaS is no longer just a trend. People now have easy access to various cost-friendly mobility options such as ridesharing with Steer, bike-sharing, scooter-sharing, or public transportation provided by the government.  

Why Buy? 

The emerging car subscription model is a new way of getting around town. It's a bit like the gym membership model—you sign up for an all-inclusive monthly subscription, and you get access to a pool of vehicles that you can use on demand. 

The goal is to give people more flexibility and make it easier for them to get around without having to worry about car ownership or maintenance costs. It also helps reduce traffic congestion and pollution by encouraging people to carpool whenever possible. 

The emerging car subscription model is an alternative to traditional leasing or buying that has been gaining traction in the past few years. It can be a great option for people who don’t want to commit to a particular make, model, or type of vehicle. 

Car subscriptions can be found in various major cities through ride-hailing services like Steer. 

The car subscription model is similar to what you find with many other subscription services such as OTT and music platforms. With these subscription services, you pay a monthly fee and get unlimited access to their services without having to buy any equipment. 

The same goes for car subscriptions; you pay a monthly fee and get unlimited access to one or more vehicles without having to buy anything. 

The biggest benefit of subscribing instead of leasing or buying is that it takes away the burden of having a depreciating asset on your books — not just from an emotional standpoint but also from an accounting perspective. 

More Choice, Less Hassle 

Time is money, and car ownership is a time-consuming, expensive endeavor. In the last decade or so, we have seen many companies offering alternative models for owning and renting a car. These new business models have been met with varying degrees of success. 

In a world where everything is available at the push of a button, car subscription services are poised to take off. The idea behind these subscriptions is to provide customers with all the benefits of owning a car without having to deal with the hassle and cost of ownership. It’s a win-win for both parties: Customers get access to new cars on demand and don’t have to worry about maintenance or insurance. 

With an EV car subscription company, you can pick any make or model of the car you want — even if it's not on their lot — and switch cars at any time for no additional charge. That freedom allows for lower prices than traditional leasing or rental services. 

Subscription services make sense for many different groups of people — millennials who want flexibility but don't have much cash to spend on cars; families who need multiple vehicles for each member; even businesses looking for a more efficient way to manage their fleets. 

Early Adopters 

It's no secret that young people are more concerned with the future than previous generations. In fact, according to a recent study by Ipsos, 70% of millennials (those born between 1980 and 2000) believe their generation will be the first to live in a post-scarcity society. As a result, they are more likely to adopt new technologies and practices earlier than older generations—particularly if they can help them reach their life goals. 

In this case, car subscription services are a perfect fit for millennials' needs: they allow younger people to focus on other things in their lives while still getting what they need from cars. For example, someone might want to save money on transportation costs by using a service like Steer, but still have access to a vehicle when necessary—something that wouldn't be possible if they had purchased it outright. 

This trend is poised to continue as more companies are now forced to adapt their business models to stay relevant in the market. Some companies have already started offering their customers access to different types of vehicles through a subscription model while others are still trying to understand how they can incorporate this new business model into their current operations. 

Achievements and Milestones 

The car subscription model is a growing trend in the automotive industry. It's an innovative way for people to lease or buy cars without having to deal with the hassle of ownership. 

The subscription model has been around for a while now, but it's only recently that it has become more mainstream and has been gaining momentum. 

When you look at the numbers, it's easy to see why. The number of subscriptions has increased dramatically over the past few years, especially when you look at the rate of growth year over year. 

The upward trajectory is expected to continue growing up to $9.15 billion with a projected annual growth rate of 63 percent. 

According to Ipsos, 2019 research showed a growth rate of up to 71 percent in 2022, which means we will see even more subscriptions than before shortly! 

But why is the market so attracted to a car subscription model? 

Significantly lower monthly payments. Car subscription plans typically have lower monthly payments than other car-buying options. This is because you don't own the vehicle and are only paying for its use. Your payments don't include insurance, maintenance, or repairs. You do have to pay for those things if you buy a subscription plan that includes them. 

No down payment. If you want to buy a car outright, you'll need to pay a down payment (usually 10 percent). But with a subscription plan, you can avoid this expense altogether. With a traditional lease or purchase agreement, there's paperwork involved in signing contracts as well as collecting fees from various parties such as dealerships, banks, lenders, and more. With subscription plans, there's no need to sign any contracts because they're month-to-month agreements that are automatically renewed unless you cancel them beforehand. 

Flexibility. A car subscription allows you to rent a car on a monthly basis and return it whenever you want. This gives you the flexibility to choose from a wide range of cars depending on your needs.  

Convenience. You don’t have to worry about maintenance and insurance costs because they are taken care of by the company itself. You can also save money as well because you don’t have to pay for gas or parking fees since these things are included in your subscription fee. 

Challenges Encountered 

As the car subscription model gains traction, more and more people are becoming interested in the benefits that come with it. However, there are still some challenges that we need to overcome before we can fully embrace this new form of transport. 

In terms of consumer behavior, one challenge is that car subscription companies have a hard time getting customers to switch from their current provider. This is because people are so used to their current model and don't want to change it up. Another challenge is getting people to commit to paying for a monthly subscription when they don't know how much use they'll get out of it. It's hard for people to commit to something that they don't know will work for them until they try it out firsthand! 

When it comes to logistics and operations management, there are two main challenges: determining how many cars should be available at any given time and determining where you're going to place those cars so that they're accessible by all members of society equally. 

Fueling the Solution 

The car subscription industry is growing quickly, and it's not hard to see why. With the help of financing via a crowdfunding campaign, all-inclusive membership subscription, and advertising, the industry has been able to expand at a rapid pace. 

The financing aspect of this new way of car ownership is what makes it so appealing to consumers. By using crowdfunding websites, companies can raise money from investors who want to back their concept. This allows them to start offering their service right away without having to wait for traditional funding sources like banks or venture capital firms to approve them—and if they don't get enough money through this method, the project doesn't go forward! 

The all-inclusive membership model is what makes this business model so sustainable over time. Typically, people will pay a monthly fee that gives them access to all kinds of benefits like roadside assistance, insurance coverage (including collision damage waivers), maintenance costs, and more. This helps keep costs down for consumers over time because they're only paying, for one thing, each month instead of multiple things separately. 

Advertising is also key when trying to grow your brand within an industry like this one where there is already some competition among other brands out there already doing similar things 

Bottom Line 

So, you're ready to make the switch. 

With Steer EV, choosing the right EV for your needs has never been easier. 

With our diverse fleet of electric and hybrid vehicles, there's something for everyone.  

And best of all? Our subscription-based model means no long-term commitments! You can try out a new car every month—or even every week—to find one that suits your lifestyle perfectly. 

And don't worry about insurance: We cover it all. If anything happens while you're driving with us, we've got your back. We take care of maintenance too so that nothing gets in the way of your enjoyment of the vehicle. 

If you've been thinking about going electric but haven't yet made the leap, now is the time. Try out one of our affordable plans by contacting us today!