Wheels on demand: Get the scoop on the latest car subscription news

The car subscription industry is going places so fast that it’s hard to keep up. We’ve compiled the latest headlines in the industry into an easy-to-digest blog post to help you stay abreast with the latest news. Whether you’re a fan of flexible mobility solutions or just curious about the latest trends, buckle up and get ready for a ride around the globe.

Regional market spotlights 

Let’s start our journey Down Under, where “the Netflix of cars” concept is gaining traction. Yahoo! News reports that Aussie car companies Loopit, Carbar and Carly are celebrating around five years of growth and success. The companies say that when people try out car subscriptionssubs, they love it as a way to manage their budgets. A big drawcard is getting a range of vehicle costs bundled into a single subscription.

The next stop is the UK, where insurance brokerage, Churchill Expert, conducted some interesting consumer research. According to Motor Trade News, nearly 60% of young drivers (18–34 year olds) are considering flexible car ownership models. Younger generations helped to spur sharing economy success stories like Uber and Airbnb—now, they’re driving the cars subscriptions market.

Check out this roundup of the major players in UK subscriptions for more insight into this market.

Funding the future 

Time for a bit of industry news about the VCs and car subscription companies that are investing in the future. FlexCar, a scaleup from Greece, has announced a new funding round that boosts total investment in equity and loans up to €300 million in just two years. The round was led by Data Point Capital.

But it’s not just startups that are eyeing the car subscription opportunity. Back in the UK, Sherwoods Motor Group is moving into the business in partnership with Karzoom. The family-owned franchise car dealer acknowledges that car retail is changing fast and is getting prepared for a future where customers demand flexible car purchase and ownership models.

Electricity in the air 

Electric vehicles (EVs) aren’t a major focus for us or our customers right now, but we acknowledge that they’re the wave of the future. That’s why we’re always watching this segment. In one interesting development, Lynk & Co, from Chinese auto company Geely Group based out of China, will be entering the US market with an EV on a subscription model.

Electric car subscription service Onto, meanwhile, is using a digital marketplace from Dealer Auction to remarket its EVs at the end of their time on the fleet. Onto has more than 6,000 electric cars in its fleet. It’s an efficient and sustainable approach to de-fleeting vehicles as they’re replaced every 18 to 24 months.

What are car subscriptions, anyway? 

Are you a newcomer to the whole idea of car subscriptions? Top Gear has a useful primer to the concept, how it works, and what the benefits are. This interview with Wagonex also offers some good insights. Both pieces are a bit UK-centric, so you can see our guide to the process we follow and how it can help you get your own set of wheels.

Zooming out for the big picture 

Let’s conclude with a look at the big picture for car subscriptions. Research from Allied Market Research forecasts that the global car subscription industry will grow at a compounded annual rate of 23.1% from 2020 to 2027. The industry generated just US$3.55 billion in 2019, and will nearly quadruple in size to $12.09 billion by 2027. 

That’s just the beginning—with the global automotive manufacturing industry estimated to be worth $3 trillion, the sky’s the limit for car subscriptions. We hope this monthly round-up has provided you with valuable insights into the world of car subscriptions. We’ll be back next month with even more exciting updates and stories to share.