New Ownership Models
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New Ownership Models
New ownership models comprise business models that are positioned between owning and sharing a vehicle. These include subscription-based models in which a customer can rent a car for a monthly fee. In comparison to buying or leasing a car, subscription models claim to offer greater flexibility and less administrative effort, as expenses like insurance and maintenance is often covered by the provider [1]. Compared to ride sharing, they offer greater exclusivity, since the customer retains sole use rights for the vehicle.
Car subscriptions can have multiple upsides. For one, they retain the same convenience as owning a car, without requiring the same commitment and upfront investment [1]. They also can be used as non-committal trials for new car models or technologies before purchase [2]. Moreover, car subscriptions can act as a gateway to car ownership, when the customer is ready to commit to purchasing a vehicle. This could make subscription models an interesting venue for car manufacturers. Furthermore, the model can also serve as a means to reduce the number of unsold new cars in dealerships [2]. Car subscription models made up roughly 10% of the mobility market in the USA in 2019. In other parts of the world, like Germany and China they do not play a significant role yet [3].
In the long run, car subscriptions can become more expensive than car purchases, however. Moreover, in practice, these models do not mark much difference from regular car ownership. As a result their impact on changing mobility is fairly limited.
See Also
Sources
[1] Schellong, D., Sadek, P., Lang, N., & Mattson, M. (2021, July 12). Will Car Subscriptions Revolutionize Auto Sales? Boston Consulting Group. https://www.bcg.com/de-de/publications/2021/how-car-subscriptions-impact-auto-sales
[2] Pander, J. (2019, December 4). Die neue Art, ein Auto zu besitzen. SPIEGEL. https://www.spiegel.de/auto/aktuell/auto-abo-die-neue-art-ein-auto-zu-besitzen-a-1299257.html
[3] Schmidt, A., Reers, J., Irwin, B., & Loes, H. (2020). Unlock the value of mobility services: Turning business models into profits. Accenture. 6. https://www.accenture.com/_acnmedia/PDF-135/Accenture-Unlock-Value-of-Mobility-Services.pdf