Senior Manager | SDV | Mobility Transformation | New Business Development | Thought Leader
😱 Double pressure for car subscription services? 😱 New funding rounds 💰. Acquisitions 🤝. Here is an update related to mobility subscription offerings 🚲🛵🚘. Nothing new: I share just my personal opinion, please add yours! ✍🏻 Let me know if you need the chart 📈 as PDF. 📧 👉 Wipe out for Onto? 💸 one of the leading subscription services from the UK 🇬🇧 enters administration 😱. Increased interest 📈 rates, steep declines in residual values 📉 of the 7.000 EVs 🚘🔋 and the squeeze on disposable income put the company that raised a total of $ 370 million in venture capital and debt financing in trouble: https://lnkd.in/ejSJJAfi 👉 REVEL, a subscription startup from Spain 🇪🇸 raised $123 million in equity investment (~ $16 million) and debt financing (~ $107 million). Curious to see how they handle the risks that pushed Onto into trouble, I would assume the residual value risk is outsourced to the leasing partners 🤷🏼♂️: https://lnkd.in/eEpZpDck 👉 FINN, that raised some eyebrows with a strange marketing campaign during the IAA MOBILITY raised additional debt funding 💸 of around $27 million. Seems that there was a 5% gap in the asset-backed securitization scheme. It’s not communicated 🤷🏼♂️ if this gap is a result of increased interest rates or decreasing residual values or if there are other reasons: https://lnkd.in/eEpZpDck 👉 Same amount, different company: Swiss 🇨🇭 car subscription startup Carvolution | Das Auto-Abo. raised $27 billion 💵 by Zuger Kantonalbank to fund a fleet expansion. I would assume, they could grow the fleet by around 500 vehicles 🚗 with the new funding. Also curious how interest rates and residual value risks are handled 🤨: https://lnkd.in/efEEtYjV 👉 The ideas 💡 around insurance products around the mobility transformation 🚗🚲🔋 trends are growing. Last time I wrote about the ideas around battery health 🔋 and driver behavior 🛞. In addition, R+V Versicherung launched an insurance policy that covers the deductibles 💸 of up to € 1.000 that normally come with subscription services. 👉 Bike 🚲 and moped 🛵 subscription service Dance crossed the milestone of 10.000 active subscriptions in Berlin, Hamburg, Munich, Paris and Vienna. I would assume that the ARR is around $ 7.5 million 💰, the company raised up to $70 million. Dance tries to increase brand awareness by partnering with MILES or SIXT. New routing features 🚧, accessories for families or B2B offerings should fuel growth as well: https://lnkd.in/e-SeXQgq 👉 Autonomy car 🚘 subscription service is acquiring the car sharing service EV Mobility. EV Mobility is offering car sharing services in the premium 🔋🚘 segment for hotel 🏨 chains or businesses🏢. The EV Mobility tech stack ⚙️ could boost the the subscription business. Both companies were working together 🤝 already: https://lnkd.in/e5iRD3-i #subscription #cars #bikes #mobility
Augustin Friedel 🚲 🛴 🛵 🚘 gerne auch Electric Runner DE mit aufnehmen 😊 LG
As your chart indicates, there are operators offering a variety of pay per use business models. All require vehicles. The macro economic factors are distributed equally. Higher interest rates, an accelerated decline in residual values, increase supply of new vehicles, limited supply of used vehicles make this a challenge for the entire market. This is not any worse for vehicles financed for subscription than for an average individual retail customer. Further pressure from new EV’s - higher vehicle prices, uncertain residual values, more expensive insurance, supply vs demand for both new and used EV’s, fragmented regulatory incentives - and concerns about the economy at large simply make it more challenging. It could be argued that it makes sense to extend the time cars are on subscription until the market economics align best with the profitabilty targets. After all, its just residual management plus opex. Why push negative equity assets into the market just to get crushed instead of being creative and structuring pricing tiers based on asset age? There is a definitive need in the market for flexible term operational lease/contract hire simply because the traditional models are becoming increasingly unaffordable.
Subscription is not a model which should be considered by itself - it is a risk management model which operators can use to extend the usage of cars together with Retail finance and leasing. The challenge has always been when subscribtion companies become asset heavy and don’t have anyways to hedge against falling RVs. Instead if they operate as asset light and shift cars between sharing, leasing, rental they can build a more sustainable model. Would love to hear your thoughts Augustin Friedel 🚲 🛴 🛵 🚘
When you narrow the offering and focus the risk / reward it will either reward or bite you without the opportunity to take a strategic change. EV is toxic as an investment
Augustin, your posts like early Christmas presents to me 😆 We just talked about car sharing and subscription-based models internally last week, and we decided to invest more resources for IoT solutions for this market sector to make it easier to launch from the telematics hardware side for our partners 🚗 🔌 🛰️
Would love the chart as pdf please - great insight
MILES also has a car subscription! 😊🖤
Thanks for your Update Augustin Friedel 🚲 🛴 🛵 🚘 👍🏻👍🏻
Green Mobility Innovator | e-Mopeds on Subscription
1yWhere's MUTE International e-moped all inclusive subscription in your chart?