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Tech-Driven Subscription Models Are Turning The Automotive Industry Upside Down The subscription model is revolutionising the way many industries operate, with the emphasis shifting from selling products and services to building direct and ongoing relationships with customers that now expect ‘more’. The Australian public transport industry is an example of this, with both the Melbourne
As Zuora’s CEO and cofounder, Tien Tzuo states in his new book,
upgrades and then head to the dealership to pick up your vehicle. And best yet there’s no need for loans, price haggling, registration or insurance. Key players in the automotive industry today are already offering subscription services overseas – including most name-brand auto manufacturers. BMW is currently
SUBSCRIBED: Why the Subscription Model Will be Your Company’s Future - and What to Do About It, subscription services within the automotive industry will be as simple as choosing a mobile phone plan - you pick your model online, select a 24 or 36 month plan, add your
testing out a subscription service in the US, allowing customers to trade vehicles as regularly as they want over a month-long period. Other automobile companies such as Cadillac and Volvo are actively testing subscriptions -- and in a recent ad campaign in the US, Volvo
transport initiatives, it is not difficult to see why the Australian automotive industry and car manufacturers are now embracing the benefits of subscription as well.
It’s already happening overseas
Image Courtesy: Zoura
City Council and the Adelaide City Council announcing recently that they are considering a monthly transport subscription fee for a combination of public transport, bike share and ride share services. With subscription models already being adopted for public PG.16 | Smart Automotive | Nov - Dec 2018
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