The subscription business model seeps into the car market
We’ve seen the subscription business model come back into vogue changing the way people buy meals, cosmetics, and clothing. Now we’re seeing it expand into the automotive market, which is bound to impact the auto dealer business model. Then again, as autonomous vehicles come of age in the next several years, and ride-hailing services become the norm why would a person need to visit an auto dealership?
This type of service is one way automakers can attract younger customers. And BMW is hardly alone: Cadillac launched a car subscription concierge service of cars and SUVs last year called BOOK. The service allows for the company’s vehicles to be delivered and picked up on demand for customers via a smartphone app.
Beyond BMW and Cadillac, the subscription market is growing as consumers and brands take note: Software vendors, too, are turning to subscriptions, according to the PYMNTS Subscription Commerce Tracker. Here is how different industries are innovating with subscriptions.
The change comes as customers are more eager to bring their business to providers that grant them increased control over the terms of their subscriptions, and to those with shorter commitment durations.
What’s more, other types of features, like plan cancellation and messaging services, are increasingly playing an important role.
Source: Car Subscription Market Set to Grow 71 Percent | PYMNTS.com
