Clutch Technologies finalized a pair of relationships on Monday to expand its presence in the vehicle-subscription space.
First, AmeriDrive, operator of one of the largest subscription fleets in North America, chose Clutch Technologies to power the all-new AmeriDrive portfolio of subscription services.
Then, HyreCar announced a partnership with Clutch Technologies, a Cox Automotive brand.
In a news release, AmeriDrive said it has rolled out its new offering in three locations, including south Florida, Austin, Texas, and north Atlanta, with more than 500 vehicles supporting both consumers and gig-economy drivers. The company operates one of the fastest growing subscription fleets with plans to further expand its footprint in 2020.
“Clutch’s technology gives us both the flexibility and control to manage our entire subscription fleet with one powerful, easy-to-use platform,” AmeriDrive chief executive officer Carlos Hernandez said.
“With real time visibility into our customer driving habits, we can better segment and service our base with the best vehicles, terms and pricing options to satisfy a host of driver demand patterns,” Hernandez continued.
AmeriDrive provides an alternative to vehicle ownership enabling customers to subscribe to a vehicle based on their driving needs. The company leverages Clutch’s Single Vehicle Subscription product that’s designed to give AmeriDrive a simple and easy way to maximize its used fleet while simultaneously allowing consumers access to a vehicle without the hassles of financing.
Two subscription plans will be available — a seven-day option or a 28-day option — both inclusive of insurance and maintenance.
“Customers like AmeriDrive represent why Clutch exists – to provide the technology backbone that supports the optimization of a fleet of vehicles that meet a variety of consumer profiles and ever-changing needs,” Clutch Technologies president Vince Zappa said. “As AmeriDrive expands their footprint, our technology will support the growth of their business.”
For more information on AmeriDrive’s all-new portfolio of subscription solutions, www.ameridrive.com.
More details of HyreCar, Clutch relationship
Now working together as partners, HyreCar and Clutch Technologies said they will bring to market an industry-first mobility solution enabling shared fleet offerings paired with on-demand.
The companies explained this powerful collaboration can offer dealers, OEMs and other providers with an all-inclusive solution to leverage the shift from automotive ownership to access and consumer demand for mobility alternatives.
Dealerships currently using Clutch can seamlessly integrate vehicle inventory on the HyreCar platform, connecting them directly with rideshare drivers to earn incremental recurring revenue. In turn, HyreCar’s dealer clients will be able to utilize Clutch’s industry-leading subscription software that powers a variety of convenient consumer-centric transportation solutions, such as Single Vehicle Subscription and Service Pickup and Delivery.
AmeriDrive is the partnership’s first mutual customer.
“We’re constantly innovating in order to provide the automotive industry with a variety of diverse mobility solutions,” Zappa said in a separate news release.
“Our partnership with HyreCar helps us address market needs by leveraging its unique solution to enable dealers and others to capitalize on the strong vehicle demand driven by gig economy drivers for ridesharing and delivery services,” Zappa continued.
HyreCar CEO Joe Furnari added, “Partnering with Clutch allows us to work with one of the most innovative companies in the automotive industry.
“HyreCar will be leveraging technologies built by Clutch and backed by the resources of Cox Automotive,” Furnari went on to say. “This powerful alliance will allow HyreCar and Clutch to expand services to the dealer community at scale.”
A dealer lands a potential customer who has changing vehicle preferences; wanting a sporty model for a while before switching to a hulking SUV. That scenario makes signing a vehicle lease or a retail installment contract prohibitive.
DriveItAway says its mobile tool that has developed traction in the “gig” economy for ride-sharing services such as Uber and Lyft now can provide vehicle-subscription capabilities to satisfy the dealer and that unique customer.
DriveItAway announced on Thursday that it is the first company to launch a dealer provided platform/customer focused app that offers both rental vehicles for “gig” economy and ride-share drivers with a “path to ownership” and now a comprehensive subscription. Also defined as a longer-term rental offering, this solution is for individuals not driving in the “gig” economy and want a vehicle without any ownership or lease commitment, the ability to switch to a different vehicle at any time and the convenience of having insurance, maintenance and roadside assistance all included in the deal.
With this “groundbreaking” Software as a Service technology, DriveItAway highlighted that it is moving further along in its mission to provide the “Swiss Army Knife” technology platform for dealer implemented Mobility as a Service.
DriveItAway’s platform created exclusively for dealers focuses on the “low hanging fruit” of current shared mobility offerings.
“We are very excited to offer this new addition to our app and platform, exclusively for car dealers,” DriveItAway president and chief executive officer John Possumato said in a news release. “We pioneered the turnkey solution for dealer focused car rentals/car sharing for Uber and Lyft drivers with a ‘Path to Ownership’, now we are bringing the ‘subscription’ or long term rental side of this business back to dealers for non-ride share drivers with an easy, low-cost way for a dealer to satisfy this emerging market for both individual consumers and small businesses.
“As a long-time veteran of automotive retail and commercial fleet sales, I am particularly excited about the growth for subscriptions, what we have branded our ‘Business Preferred Lease’ to satisfy the intermittent vehicle needs of small businesses that have fluctuating or seasonal vehicle requirements, where the commitment of a traditional purchase or lease might not make sense, and a conventional longer-term rental might be too expensive and not come in a comprehensive package with insurance, maintenance, etc,” Possumato continued.
“Local dealers have historically served this market for local businesses, and we are proud to provide the only dealer focused platform to enable this, along with our turnkey solution to rent, sell and service the rapidly growing ride-share and ‘gig’ economy driver market,” he went on to say.
Possumato also is among the experts, executives and entrepreneurs slated to appear during Used Car Week, which begins on Nov. 11 at the Red Rock Resort in Las Vegas. Early bird registration discounts are available through Oct. 1.
The agenda and more details can be found at www.usedcarweek.biz.
Vehicle subscriptions are changing the industry landscape and developing into a viable alternative to traditional purchasing and leasing models. Vehicle subscription provider flexdrive is benefiting from that change, noting growth in an array of areas during the first half of the year.
The joint venture between market leader Cox Automotive and Holman Enterprises recently shared that flexdrive signed 16 locations in 10 markets across the U.S. to its subscription platform in the first half of 2019.
The company attributed its success of rapidly expanding into new markets to the growing popularity of a new culture of transportation, grounded in two growing consumer demands — convenience and flexibility.
Illinois-based Fields Auto Group has 44 locations across four states and is now offering flexdrive subscriptions to the greater Chicago area by way of its Mini location in Glencoe, Ill. While the group has tested subscription in the past, officials indicated Fields approached flexdrive due to the company’s experience and all-inclusive approach to pricing.
The group plans to expand to additional rooftops by the end of 2019.
Officials mentioned Atlanta Luxury Motors (ALM), with seven dealerships in Atlanta, sought out flexdrive due to the company’s leading consulting capabilities, as well as its deep understanding of vehicle depreciation that enables dealers to pinpoint the most effective areas of recurring revenue.
Additional partnerships that flexdrive finalized so far this year include:
— Drive Now in Phoenix
— Essence Maserati Alfa Romeo in Fort Worth, Texas
— AmeriDrive in Atlanta and Austin, Texas
— Barry Automotive Group in Newport, R.I.
— Just Drive in Nashville, Tenn.
Officials from flexdrive added that dealer group Ride N Drive will also be opening locations in Houston and Oklahoma City in the near future.
“We are thrilled to partner with these automotive power players to bring our subscription platform to the masses,” flexdrive senior vice president of strategic development Stephane Ferri said in a news release. “As the pioneer of this industry, it is exciting to see other large organizations entering the space because it proves how popular subscription has become among consumers.
“flexdrive is laser-focused on dealer partners and has built a platform that now includes technology, fleet management, insurance and finance — all while focusing on the minimization of operational burden to the dealers,” Ferri continued.
“We are dedicated to adding the right partners to our dealer portfolio, knowing they are an invaluable asset to help us not only improve our product, but also to continue this great momentum we’ve started in 2019,” he went on to say.
A new two-tiered vehicle subscription service from car rental company Hertz includes one tier that offers full-size sedans, small SUVs and trucks and another tier that offers luxury sedans, regular SUVs and large trucks.
In announcing the new service — called Hertz My Car — the company said it will give customers more flexibility and freedom in meeting their transportation needs. The service is available in Atlanta and Austin, Texas.
Here’s how the new program works: Hertz My Car subscribers can choose from two subscription tiers, and Tier One includes full-size sedans, small SUVs and trucks for $999 (excluding taxes for both tiers). Also for both tiers, the service charges a $250 one-time enrollment fee.
For Tier Two, subscribers can choose from luxury sedans, regular SUVs and large trucks for $1,399. Hertz said in a news release that to ensure they always have the vehicle that best fits their needs, customers can exchange their vehicle twice a month to a different make or model within the tier.
Vehicle maintenance, roadside assistance, and vehicle damage are covered, and limited liability protection is provided in the monthly subscription.
The company said Hertz My Car is its first subscription service in the U.S. that expands on its multi-month rental program. Hertz also recently launched My Hertz Weekend, which is a weekend vehicle subscription program in Italy.
Hertz noted shifting consumer vehicle ownership and leasing preferences, sourcing a Cox Automotive survey showing that almost 40 percent of survey participants said owning a vehicle is not necessary. Those 40% said access to transportation is necessary, however. But 57% of urban respondents said that for getting from point A to point B, private vehicle ownership is not necessary.
"As we see consumer transportation needs change, it's an exciting time to further evolve our products and services to deliver on our value proposition, said Hertz senior vice president of brand Jayesh Patel. “At Hertz, we're here to get you there. We feel well positioned to lead in vehicle subscription services. We've seen growth in our longer-term rentals in recent years, which we believe is one of several positive indicators the time is right for this service. We also have a strong and consistent focus on enhancing our customers’ experience, including recent innovations such as our redesigned mobile app and Hertz Fast Lane powered by CLEAR that gets customers on the road faster than before.”
Patel also said that with Hertz My Car, customers can choose vehicles to best match their needs, and the program provides flexibility in vehicle ownership and maintenance costs. That could especially appeal to people looking for alternatives to owning or leasing a car, Patel said.
“Atlanta and Austin are prime testing grounds with diverse and progressive communities, and we look forward to combining the insights we gain there with our fleet management and service expertise to expand Hertz My Car, leveraging our extensive network of more than 3,500 Hertz locations nationwide,” Patel said.
After launching as a pilot a year ago in Philadelphia and Nashville, Tenn., the Mercedes-Benz Collection vehicle subscription program is expanding to Atlanta, which is home to Mercedes-Benz USA.
Additionally, the subscription program is adding the Premier tier in Nashville, the company said Monday.
Mercedes-Benz Collection is a collaboration between MBUSA, Mercedes-Benz Financial Services USA and Mercedes dealers.
“The pilot program far exceeded our expectations,” MBUSA vice president of sales Adam Chamberlain said in a news release.
“Eighty-two percent of the subscribers are new to Mercedes-Benz, and we are hitting the mark attracting younger drivers who might not otherwise have the opportunity to experience the brand at such a young age,” Chamberlain said. “Interestingly, families and couples are equally accessing the service whether for use as their primary car, for fun or as a way to test drive a wide variety of models.”
With the move into Atlanta and thanks to a recent partnership between Mercedes and the Clutch Technologies (a vehicle subscription/mobility software platform owned by Atlanta-based Cox Automotive), Clutch Georgia members can shift into a Mercedes-Benz Collection subscription. The Mercedes-Benz Collection program is powered by Clutch, and that will continue.
Geoff Robinson, who is vice president of Mercedes-Benz Financial Services USA, said they “continue to fine tune” the program as they gather feedback.
“Mercedes-Benz Collection is proof that there is a strong appetite for services that provide people with the flexibility to move in and out of various Mercedes products, depending on their needs, without the added effort of managing vehicle insurance, maintenance or mileage limits,” Robinson said in a news release. “Based upon market input and the learnings from our pilot programs, we continue to fine tune our offering to meet the changing demands of our customers.”
The ongoing partnership between Uber and vehicle subscription provider Fair has an interesting new element.
Uber drivers in select markets throughout the U.S. will now be able to use a pre-owned vehicle for ride-sharing through Fair for free for the first week.
The program debuted in January in California and now being scaled elsewhere in the U.S., Fair said in a news release on Wednesday. And there is no credit requirement.
“Drivers come from all walks of life, and we're focused on finding more opportunities for them to earn with Uber and pursue their long-term goals — even if they don't have access to a car,” Uber head of driver product Daniel Danker said in a news release.
“That's why we created a platform helping drivers hit the road more quickly, and why we're excited to partner with Fair to expand dependable vehicle access.”
Drivers utilizing the program will be given credits in their account that can be used for the first weekly payment and tax. The all-in weekly fee includes unlimited mileage, insurance, limited warranty, roadside assistance and fully reimbursed routine maintenance (excluding tax), Fair said.
Drivers make a refundable $185 security deposit to begin.
“Anyone should be able to drive for Uber, and we’re enabling that by removing the many traditional hurdles to accessing a vehicle,” Fair chief executive officer and founder Scott Painter said in a news release.
“Not only does this program offer flexibility and simplicity through its all-in-one payment, but it reimburses the entire cost to drivers who meet its ride goals, essentially allowing them to access a car for free,” Painter said. “It’s an unprecedented way to expand access to earning opportunities to thousands of new Uber drivers and ensure the growth of ridesharing going forward.”
Drivers in California who continue driving their Fair car after a week will have the subscription auto-renew for another week. The driver is charged the $185 upfront payment, plus tax.
Additionally, this perk is being offered for a limited time: Uber is paying $185 in incentive payments to drivers completing 70 Uber trips a week; drivers can choose to use that toward the Fair weekly payment. The news release notes that trip amounts may vary in other markets.
Drivers completing 120 trips are paid $305 per week.
“The Fair contract will auto-renew every week for up to 28 days; drivers wishing to continue after that would digitally re-sign their contract in the Fair app. Note: cost of gas is not included in this offer,” Fair noted in a news release.
