A NEW MARKET FOR CAR SUBSCRIPTION TAKES SHAPE

Shifting urban mobility needs require innovation

Today’s car owners increasingly view car ownership as a burden due to the long-term commitments associated with traditional car financing. It is poorly suited for a dynamic world, where the circumstances of life can change rapidly.

More than 50 percent of the world’s population live in urban areas, where shifts in lifestyles and preferences are especially pronounced. According to a 2023 World Bank Group report, the world’s urban population is expected to grow to six billion by 2045, leading to increased road congestion, limited parking options, and changing transportation needs.

Subscription based car-usage gives urban populations on-demand car access without long-term commitment. Thus, densely populated urban areas hold a potentially strong market for car subscriptions.

Changing mobility needs should also be viewed in the light of high inflation and energy crises that have surged the prices of oil, gas, and electricity. The global pandemic contributed to a rising global insecurity, which – in combination with increased interest rate levels – has vitalized demand for flexible car subscriptions.

In summary, unpredictable societal changes have made both consumers and businesses more aware of the value of a subscription service, where the binding period is short and flexibly adapted to individual mobility needs.

Time is a scarce and important resource for many people today, driving the demand for convenient solutions. Consumers and businesses alike have transitioned from offline to online, and subscriptions are part of that trend. Car subscriptions are increasingly in demand as a simple and resource-efficient solution.

In McKinsey & Company’s 2023 survey, 29 percent of European car customers responded that they want to purchase their next car online. These car customers are looking for a seamless digital service experience within areas such as car financing, insurance and online-customization.

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Nearly one third of European car owners want to buy their next car online, according to McKinsey & Company.

ACHIEVE QUICK MARKET ADVANTAGES WITH :DRIBE's SUBSCRIPTION MODEL

In an auto market under economic pressure, :Dribe’s car subscription model represents a solid and viable alternative to traditional car ownership. :Dribe’s comprehensive subscription services provide access to a wider range of sales channels, minimizes the risk of inventory depreciation, and meets the market demand for flexibility. In short, a franchise partnership with :Dribe ensures your business’s resilience through diversification and helps you achieve market advantages in a changing automotive industry.

WHAT'S
INCLUDED?

:Dribe’s subscription service provides more than just a product for consumers and businesses. It provides an end-to-end solution through a user-friendly app. From onboarding, reservation and pick-up to managing your subscription and mileage – everything happens digitally. For businesses, :Dribe’s B2B-portal integrates directly into the app, giving fleet managers the tools to quickly and seamlessly add employees and manage the company’s policies, vehicles and subscriptions. The back-end portal automates all processes from billing to inspections whilst empowering your business. Based on extensive data collection through the app and CRM-system, :Dribe customizes and automates its communications to increase customer acquisition, reduce churn, and encourage upselling. :Dribe’s complete Plug & Play-package also includes an extensive brand manual, a selection of brand assets, an integrated web page, and a statistics module for business intelligence.

The automotive landscape is under pressure. Market instability makes traditional car ownership less appealing
– and car salesmanship more complicated.

So, the car subscription model is an alternative route to new revenue. It meets the flexibility needs of modern consumers and corporates alike, while offering automotive players a diversified sales channel and less risk of inventory depreciation.

It’s innovative, minimizes risks and can generate new revenue streams to give your automotive business a competitive edge in a transforming industry.

RESULTS AND FUTURE PROSPECTS

Kosmocar’s successful implementation of the :Dribe subscription model has resulted in an increased customer base and more than 8000 downloads of the :Dribe-app within the first month.

To raise awareness of the value of the subscription model, Kosmocar has developed targeted marketing campaigns that inform and generate interest in subscription services. Based on the ready to implement brand book, the subscription offering and the collaboration between Kosmocar and :Dribe has attracted media attention, which has been leveraged through PR events, contributing to extensive media coverage of Kosmocar’s subscription service, leapfrogging their market entirely.

This case illustrates how Kosmocar has strategically adapted to the market through digitalization, partnership, and innovative marketing to achieve success with their car subscription service. Their experience offers valuable inspiration to other auto industry players looking to explore similar opportunities to meet the growing customer demand for car subscription solutions and usage over ownership.