Why we turned a car upside down at EVS350
by Jordan Symmonds on 03.10.22
Last updated at 24.10.22 08:35 AM
This is the largest electric car fair in the world, and the Casi crew was there to share our story and meet international companies interested in car subscription. Because we had a large booth space, we knew we needed to create something grand that represents what we’re all about. We, therefore, took on the challenge of flipping a car upside down. Our upside-down blue Renault Zoe was not only there for great photo opportunities, but also to symbolize that the automotive industry is being turned upside down.
For years, Casi has been using a slide in presentations that shows an upside car and the four largest contributing factors to the industry’s upheaval. The contributing factors include the industry going green, players using direct distribution channels, a growing sharing economy, and fast-moving technology. Car subscription as a business model and favorable consumer product thrives in this evolving environment.
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The first catalyst is that Europe is turning electric, and the transition is happening fast. EU leaders recently supported a proposal banning the sale of gasoline and diesel cars from 2035 onwards. There will be more electric cars on the road which will play an important role in making our daily transport more environmentally friendly. Car subscription enables the electric revolution by lowering the barrier to electric cars; Consumers can subscribe to their EV for a flat monthly rate, including insurance, with no down payment. Consumers who are new to EVs can test out various brands and models without the pressure of making an expensive, long-term purchase. We’ve seen that the flexibility of car subscription beats the uncertainty of electric vehicles and that once people are no longer tied down by the car they own (and statistically use less than 6% of the time,) they are more open to trying other forms of mobility, like biking during the summer months, or taking public transportation.
A sustainability shift is not the only reason for the industry’s change. Consumers often want to make the sustainable move and we see that not only what they purchase has changed, but how they make purchases as well. In Norway, the number of visits to car dealerships before a purchase has gone from an average of four to about one. Consumers are now making their mobility choices on the couch. Car subscription enables a completely digital purchasing experience, one that is familiar because of the abundance of subscription services like Netflix and Spotify. The consumer can order their new car on the phone and be driving on the road days later. If that car is not a good match for their lifestyle, they can easily cancel the subscription or swap cars.
Through Casi's platform, the provider has an overview of their fleet and can make data-driven decisions about what their customers want. Consumers today prioritize experiences over ownership; They rent, subscribe, or share, all from the convenience of their phones. Instead of owning a depreciating asset, they prefer to access the right form of mobility at the right time; whether that’s an electric scooter, ride-hailing service, train, or car collective. This consumer shift results in an average age of subscribers is 37. Car subscription is a product that allows this demographic full flexibility and freedom, both financially and in their dynamic lifestyles.
The final accelerator of our shifting industry is the fast-moving technology; The development of electric car technology is rapid and with more innovative players entering the market, batteries and the vehicle software are developing at lightning speed. Buyer patterns of cars will be similar to that of electronics; People will wait for the next release that boasts even more advanced updates. Car subscription is again positioned well here; Users can swap their car to the newest model upon release, ensuring they always have the newest technology and never invest large sums of money in an item that will be outdated in months' time. Providers can then lower the price for the older models and appeal to a more price-sensitive user group.
There is no doubt that car subscription will be a significant part of the automotive future, and whether you are a car dealer, car manufacturer, insurer, bank, or another player in the car industry, it is worth thinking about whether car subscriptions should be on your list of possible business models. And that, is worth flipping a car over.