Incentives might not be as robust now at dealerships to deliver used and new vehicles. But in at least one place, financial incentives are growing in the vehicle subscription market.
On Tuesday, Getaround, a digital peer-to-peer carsharing marketplace, announced a new national partnership with GO, a vehicle subscription provider.
Through this agreement, hosts who list their vehicle on the Getaround platform now have rebate incentives from GO worth up to $1,200 per vehicle and can quickly and affordably start and scale their carsharing fleets.
According to a news release, every current and new Getaround carsharing host who signs up on GO is eligible for a per-car rebate equivalent to 100% of the first month’s subscription cost.
The companies explained subsequent months are rebated monthly up to 50% off the subscription cost, paid out monthly until a maximum of $1,200 in total rebates is reached.
“Getaround’s partnership with GO provides our hosts a huge cost savings opportunity and a great entry point to scale their carsharing businesses,” Getaround chief operating officer Sy Fahimi said in the news release.
“Bringing solutions to our hosts with partnerships like this strengthens our marketplace and will ultimately pave the way to entrepreneurship for hosts and make managing a fleet of carshare vehicles more accessible,” Fahimi continued.
For those looking to participate in the program, Getaround highlighted that it looks to make the onboarding, management, and scaling of a vehicle fleet business easy and accessible for hosts.
Proprietary Getaround Connect technology can allow guests to unlock vehicles with the Getaround app and hosts manage all reservations directly from their phone, removing the need to coordinate the logistics of meeting up with drivers to pick up keys.
Vehicles are covered by insurance during all active Getaround trips. Plus, Getaround offers predictive pricing, enabling hosts to maximize earnings.
“GO provides drivers the simplest and cheapest way to get a high-quality vehicle,” GO chief executive officer and founder Michael Beauchamp said in the news release.
“We’re excited to be working with another innovator in our industry — pushing the envelope to provide consumers a better price and experience. This partnership provides Getaround hosts access to premium, reliable vehicles at an affordable cost,” Beauchamp went on to say.
To learn more about how to become a host on Getaround with GO visit https://go.getaround.com/partnership-drive-go.
DriveItAway founder and chief executive officer John Possumato wants to give consumers as many options as possible when using the company’s electric vehicle subscription to ownership program.
On Wednesday, DriveItAway Holdings launched an initiative with Polestar 2 for anyone who would like to drive and try a new luxury EV vehicle before making a commitment to purchase.
“We found that many people are hesitant to make a commitment to buy a brand-new EV,” Possumato said in a news release “We designed the program so that anyone can immediately drive a Polestar 2 with no commitment to purchase, in a fast, easy, and inexpensive way with the vehicle subscription managed entirely through our mobile app.
“Turn-key and complete, our program includes insurance, maintenance and delivery right to your door, and, only with our unique program, a portion of subscription fees goes towards the purchase price, should you choose to buy the vehicle,” he continued.
The DriveItAway program can provide new EV manufacturers and legacy OEMs a new distribution channel for their vehicles, as it provides an “infinite test drive” to a full range of consumers, from entry level to luxury buyers, to satisfy a market that is “EV curious,” but does not want to make an immediate commitment to purchase.
DriveItAway’s EV subscription program is now starting in the greater Philadelphia area with the Polestar 2, but will soon offer a full range of EVs, including Chevrolet Bolt/Bolt EUVs, Nissan Leafs and even Ford Escape Plug In Hybrids, throughout the United States.
DriveItAway highlighted that its unique ‘EVs for Everyone’ program is the perfect “vehicle” to reduce the barriers to EV adoption for all drivers, perfect for people who are interested in an EV, but are put off by the higher initial cost as compared to a gas vehicle or are concerned about suitability and range anxiety.
“The future is zero emission vehicles,” Possumato said. “And the future of consumer EV adoption is propelled by a flexible subscription with optional ownership, with the money paid in applied towards the purchase.”
The company pointed out the driver has the right, but not the obligation, to buy the vehicle he or she is driving, with money paid in, given back as a bonus coupon toward the purchase.
Elena Ciccotelli, automotive partnerships manager at Lyft and a previous Women in Retail honoree, recently chose a new DriveItAway Polestar 2 on the program. She also found an additional benefit to the process.
“Used car values are sky high right now, so I was eager to sell my used car for top dollar,” Ciccotelli said in the news release. “But I didn’t want to buy a new vehicle right now during the car shortage, with limited selection and high prices. Also I very much support Lyft’s pledge to be 100% EV by 2030, so I made the commitment that my next vehicle would be EV zero emissions.”
“The DriveItAway app checked off all of the boxes. It gives me a new Polestar 2 EV immediately, with no commitment, to drive as long as I like, with the option to buy with the money I paid in. It truly seems like the best of everything, and gave me the ability to sell my used car at top dollar today. It’s a great way to get green by going green,” she went on to say.
Matthew DeSantis, a recent college graduate, had a different but similar way of being both environmental and financially responsible.
“My education was expensive, and I have a lot of student debt, so while I need a car right now to get to work, the last thing I need is more debt to buy a car, especially today with the current record high prices,” DeSantis said in the news release.
“At the same time, I wanted to go green as zero emissions is important to me,” DeSantis continued. “DriveItAway was the best alternative with no long-term financial commitment — perfect for me.”
For further information, go to www.driveitaway.com.
In March, FINN expanded its vehicle subscription offering to western Pennsylvania, Massachusetts, Connecticut and Washington D.C., following its initial U.S. rollout in December.
And now the company has additional financial resources to expand more.
Last week, FINN announced it has closed $110 million in Series B funding led by Korelya Capital along with Keen Venture Partners, Climb Ventures, Greentrail Capital and Waterfall Asset Management.
Existing investors such as White Star Capital, HV Capital, Heartcore Capital, UVC Partners, and Picus Capital also participated in the round, according to a news release.
FINN said it plans to use the funding to support its U.S. expansion and to strengthen its leadership position in Europe.
FINN also announced the opening of its U.S. headquarters in New York City. FINN is currently active in New Jersey, Pennsylvania, Massachusetts and Connecticut and will offer its vehicle subscriptions in California and Florida later this year.
The company said it is now valued at more than $500 million.
This financing comes on the heels of up to $200 million in asset-backed security (ABS) funding the company raised for U.S. market expansion from Waterfall Asset Management in March.
With its $520 million EU ABS raised from Credit Suisse and Waterfall Asset Management in December 2021, this new financing brings FINN’s total capital raised to $830 million within the past six months.
Besides supporting its growth, FINN said will use its funding to advance its core technology, and accelerate hiring across its global teams.
“We are honored to welcome such experienced investors on board. With this fundraising, we can bring our all-inclusive car subscriptions to the mass market,” FINN chief executive officer and co-founder Max-Josef Meier said in the news release. “What motivates us further, is that our flexible and easy to book car subscriptions serve as a catalyst for electric vehicles.
“One-third of our fleet is already fully electric, and the share is quickly growing. With the new investment, we bring not only car subscriptions, but also electric vehicles to a large audience,” Meier continued.
Additionally, FINN announced that former French Minister of Digital Economy and Culture, Fleur Pellerin, has joined its board of directors.
Pellerin is the CEO and founder of Korelya Capital and brings to FINN her extensive experience in scaling fast-growing technology companies, vast financial network and significant experience in the automotive industry.
“I was deeply impressed by FINN’s subscription model, as the car industry has yet to be transformed by the e-commerce revolution and subscription economy to become more sustainable. FINN’s positioning to build the global category leader for car subscriptions further intrigued me,” Pellerin said.
“What we as Korelya also liked about FINN was the depth and quality of its team. As Korelya consistently seeks to invest in category leaders that can defend their leadership over a long term, our investment in FINN is a perfect fit,” she added.
FINN said is on track to grow to 30,000 global subscribers this year.
“As consumers shift from offline to online and favor flexibility and ease-of-use over ownership, FINN provides the ideal solution to the evolving automotive customer,” the company said. “Through its strong, direct partnerships with the most popular automotive manufacturers, FINN provides customers the unique ability to subscribe to a broad selection of new cars with no hidden fees and no down-payments — the price online includes insurance, maintenance, roadside assistance, and various term options.
“Its partnership with electric vehicle automakers also helps accelerate the transition to electric cars by allowing new users to test drive them through a subscription before they purchase,” the company went on to say.
Pinsent Masons LLP acted as legal advisor for Korelya Capital for this transaction.
It appears Kyte is putting the asset-backed credit financing from Goldman Sachs and Ares Global Management of $200 million announced last week to work quickly.
On Thursday, the company pioneering vehicles delivered to users on-demand announced the launch of its new Tesla subscription product.
Kyte said the fleet of premium electric vehicles will be available in San Francisco and the New York City service areas, including Manhattan, Brooklyn, and Jersey City, starting April 15.
This rollout of Kyte’s latest offering is the next milestone in a series of successes by the California-based company and will eventually be available in all of Kyte’s current 14 markets.
As part of this new subscription service, Kyte said the Tesla Model 3 will be available and will include maintenance, insurance, registration and roadside assistance.
For consumers looking for the experience of a Tesla without the hassles of ownership and the long-term commitment, Kyte’s explained its offering will allow customers to reap “all the benefits while avoiding the challenges — no maintenance and no lock-in.
“What’s more, for those that come to love the performance of their Tesla, Kyte provides the option to extend subscriptions flexibly at any time,” the company added.
Erik Zahnlecker is director of product at Kyte, which also operates in:
— Boston
— Chicago
— Denver
— Long Beach, Calif.
— Los Angeles
— Miami
— Philadelphia
— Portland, Ore.
— Seattle
— Washington, D.C.
“Being able to expand our fleet and amplify EV adoption is mission-critical. We don’t want to only be innovators in how we give people access to cars, but we want to be a catalyst for the rapid change going on in the transportation industry as a whole,” Zahnlecker said in a news release.
“This rollout is pivotal to our growth strategy and core to our electrified, autonomous, and shared vision,” he went on to say.
There’s now more juice in the subscription market for electric vehicles.
NextCar Holding Co. (NXCR), the fintech and insurtech vehicle subscription platform founded by Scott Painter and Georg Bauer, has a new brand and offering with the initial rollout tailored to specific consumers in a particular part of the country.
Now operating under its newly acquired consumer brand, Autonomy, the company has launched an electric vehicle and zero emissions vehicle subscription program, starting with the Tesla Model 3.
Initially, the program will be available to consumers in California, with plans to rapidly expand to larger U.S. markets, according to a news release from Autonomy.
And Autonomy already has another industry relationship in place to gain more momentum for this subscription offering.
According to a separate announcement, AutoWeb and Autonomy have entered into a new business relationship to provides shoppers visiting any of AutoWeb’s automotive web properties, including Car.com and Usedcars.com, the opportunity to subscribe with Autonomy to drive a Tesla Model 3 on a month-to-month basis after a three-month hold period.
“Electric vehicles have reached a tipping point, and it’s clear that the Tesla Model 3 is this generation’s Prius,” said Painter, who is chief executive officer of Autonomy, which recently raised $83 million in debt and equity financing to support the launch.
“Financial responsibility and the avoidance of debt is also at an inflection point and subscriptions have become a pervasive, sustainable business model and a cornerstone of modern digital life,” Painter continued.
“Autonomy is a big idea, and whether it’s freedom from long-term debt, commitment, complication, confrontation, or fossil fuels, everyone can relate to the desire for more autonomy in life,” Painter went on to say.
To recap, Autonomy’s Tesla Model 3 vehicle subscription program features a month-to-month contract after a three-month minimum term. It is designed for consumers to be able to order their vehicle in 10 minutes by providing their driver’s license and a digital form of payment, and for the vehicle delivery or dealership pickup process to transpire in less 20 minutes.
Consumers can manage their entire vehicle subscription digitally through the mobile app, which now has the Autonomy branding. The company secured both the top-level global domain name Autonomy.com and acquired the phone number 1-800-AUTONOMY (1-800-288-6666).
Autonomy sees its program as providing new EV manufacturers and legacy OEMs a new distribution channel for their vehicles, one that also allows a growing “EV curious” marketplace to have a flexible and affordable way to drive and test out an electric vehicle.
“This is especially relevant as EVs start to appear in greater volumes in the used-vehicle marketplaces,” Autonomy said.
Further details of the Autonomy subscription program for Tesla Model 3 include:
— Available models: At launch, low mileage Model 3 Teslas, with later expansion to other Tesla models.
— Subscription pricing: All subscriptions include routine maintenance and roadside assistance. Consumers have flexibility to customize their monthly payments to as low as $550 a month (with a $5,500 start fee) up to $1,000 per month (with a start fee as low as $1,000). A $500 security deposit is required when the subscription is activated.
— Reservation: Fully refundable $100 deposit (applied to security deposit at activation).
— Term: Month-to-month with a three-month minimum.
— Availability: In California with new markets opening soon.
— How to subscribe: Reservations can be made at Autonomy.com.
“The future of transportation is zero emissions vehicles. At Autonomy, we are accelerating the shift toward sustainable mobility by giving consumers flexible access to electric vehicles at affordable monthly payments," said Bauer, who serves as president of Autonomy. “Vehicle subscriptions reduce the barriers to adoption of electric vehicles, providing a low-commitment option with lower upfront costs. It is perfect for people who are interested in EVs but are not ready to make a long-term commitment due to concerns around cost or range anxiety.”
The program will also be featured on leading automotive marketplaces visited by in-market consumers when they are shopping for a vehicle, including in California through TrueCar.com and AutoWeb.
As one of the largest new-vehicle lead generation providers in the automotive industry, AutoWeb has a nearly 30-year history developing longstanding relationships with OEMs and dealers throughout the U.S. to connect them with in-market auto shoppers.
AutoWeb’s recently launched used-vehicle acquisition business extends the organization’s matchmaking capabilities to include consumers looking to dispose of their current vehicle, in addition to those seeking to purchase or lease a new vehicle.
And now AutoWeb is working with Painter, Bauer and Autonomy.
“As more of the vehicle transaction process shifts online, our business continues to evolve toward transactional monetization opportunities. We also remain focused on growth-oriented segments of the market — from new vehicle acquisition offerings to electric vehicle adoption — to stay relevant with these shifts in consumer preferences,” AutoWeb CEO Jared Rowe said.
“Our relationship with Autonomy is at the core of these radical shifts in the industry, providing our car shopping audience with a completely digital and affordable way to get access to a Tesla Model 3,” Rowe went on to say.
After launching its vehicle subscription service in four states, a Philadelphia-based startup now has more resources to grow.
This week, GO announced that it has secured a $41 million round of financing led by Synterra Capital Management. According to a news release, this funding will enable the company to grow its fleet substantially and expand service nationally.
GO is now live in four states, including Pennsylvania, Florida, New Jersey and Delaware, with plans to announce additional markets later this year.
“We created GO to transform and simplify the experience of getting a car. This partnership with Synterra will accelerate our growth as we expand to meet customer demand in new markets,”GO founder and chief executive officer Michael Beauchamp said in the news release.
GO offers a vehicle subscription service geared specifically toward daily drivers.
Through the service, the company said, its customers in available markets can order their vehicle online in around four minutes and save up to 25% per month. There’s no down payment, and the entire process is handled virtually.
In most cases, GO indicated vehicles are delivered to the customer’s home at no charge.
“Through technology, innovation and efficiency, GO brings customers a seamless experience and lower prices,” Beauchamp said.
To learn more about GO, visit https://www.drivego.com.
Another vehicle subscription start-up launched this week with an eye on being a simple and affordable alternative to traditional auto leases and financing
GO announced its subscription service is available to customers throughout the Philadelphia metro area.
GO said through a news release that it is now live in four states, including Pennsylvania, Florida, New Jersey and Delaware, with plans to announce additional markets later this year.
“We created GO to transform and simplify the experience of getting a car, and we’re thrilled today to be able to offer this service in our own backyard. Philly is a great place to build a business,” GO founder and chief executive officer Michael Beauchamp said in the news release.
Customers in available markets can order their vehicle online in about four minutes and save up to 25% per month.
GO explained that there’s no down payment, and the entire process is handled virtually. In most cases, vehicles are even delivered to the customer’s home at no charge.
GO said it is the first company to offer a vehicle subscription service geared specifically toward daily drivers, unlike other subscriptions that focused on swapping vehicles and short-term use.
With significant advantages over traditional car buying, GO said its “innovative model promises to change the industry and represents a new paradigm for car shoppers.”
Beauchamp added, “Through technology, innovation and efficiency, GO brings customers a seamless experience and lower prices.”
To learn more about GO, visit https://www.drivego.com.
Say this for Scott Painter: the entrepreneur can build relationships.
After assembling an association with Westlake Financial in December involving a $400 million credit facility, the latest company Painter founded NXCR — a fintech and insurtech vehicle subscription platform — now has a strategic alliance J.D. Power, a global leader in data analytics and consumer intelligence.
According to a news release distributed on Wednesday, J.D. Power is bringing proprietary data solutions, vehicle valuations and consumer insights to support and strengthen NXCR’s vehicle subscription value proposition.
The companies explained the intent of the alliance is to give consumers more flexible choices when making vehicle purchase decisions.
“J.D. Power, through its merger with Autodata Solutions and its acquisition of NADA Used Car Guides and ALG, has quickly become the world’s leading authority on vehicle valuations at wholesale and retail that auto finance and fleet companies rely upon,” Painter said in the news release. “This collaboration provides NXCR with the richest, most accurate and most comprehensive dataset for vehicle valuations, residual value forecasts and insights on consumer preferences and experiences.
“The proprietary data solutions we’re developing are built on J.D. Power data and consumer insights and will help us ensure we are acquiring and reselling vehicles at optimal prices — key tenets to making vehicle subscriptions affordable and profitable at scale,” he continued.
The companies are approaching their relationship based on the premise subscriptions have quickly become the modern way consumers access and pay for all categories of products and services.
NXCR and J.D. Power see vehicle subscriptions providing consumers with simple and affordable access to mobility through a mobile app.
“As both new- and used-vehicle prices continue to rise, flexibility – including monthly payment options and contract length — will become increasingly important in how consumers shop for a vehicle,” J.D. Power president and chief executive officer David Habiger said. “Bundling and amortizing vehicle ownership costs into one affordable monthly payment with shorter, more flexible terms is a compelling option for younger generations and value-oriented consumers.
“Scott Painter and Georg Bauer are pioneers in bringing to life vehicle subscriptions and introduced the Car-as-a-Service category to automotive. J.D. Power is excited to partner with them on the future of mobility with NXCR,” Habiger added.
Thomas King, president of J.D. Power data and analytics and chief product officer elaborated more about the information the company is bringing into this alliance as Painter referenced.
“To offer vehicle shoppers the most affordable monthly payments, it is critical to be able to accurately define both the current and future value of a vehicle,” King said. “J.D. Power will leverage its rich vehicle and valuation data, coupled with advanced analytics to ensure shoppers have access to affordable, flexible vehicle ownership.
“The same data and analytics suite will be used by NXCR to inform the acquisition of vehicles for the NXCR fleet from its dealer partners, and also to resell those vehicles at a fair price to dealers or through auctions when they leave the NXCR fleet,” he went on to say.
