What are key pillars of the car subscription business model that are necessary to get right in order to succeed? In our experience, providers need to nail:
- Digital sales: Customers want to access this product digitally, and the demand will continue to grow. According to Accenture, the value of digitally enabled automotive revenues will be more than 1.5 trillion EUR by 2030; That’s more than 24%!
- Automated operations: This business model is operationally heavier than a traditional leasing product, so automating processes to save time and cut costs is crucial.
- Unit economics - Getting unit economics right is the most vital pillar. Financial reports showcasing revenue vs. costs associated with a vehicle can be the difference between scaling profitably and scaling a problem…
- Ecosystem partnerships: Don’t waste time and money trying to develop an internal tech platform or building an operational team. Do what you do best and outsource other areas to the experts.
Casi customer Hyundai Connected Mobility shared their experience developing these areas while on stage at MOVE 2024. During a LIVE episode of Join the ride!, Yogev Burshstein talked with Jordan Symonds about scaling Hyundai’s Mocean Subscription service. You can watch them on stage here. Contact us if you have questions and enjoy!
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