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.