A new form of car ownership is establishing on the market. Recently, both independent startups across Europe and car manufacturers have been betting on car subscriptions. The pioneer of this form of car use, the Czech Driveto, also saw strong growth last year. And according to analysts, this market expects further steep growth.
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Driveto’s turnover grew by 120 percent last year, sales exceeded 120 million crowns and the company got into the black for the first time since its establishment. “In the ongoing crisis, the need for people and companies to reduce the risk of debt or long-term liabilities is growing,” explains Driveto boss Adam Szabó.
The service, which is part of the Miton investment group, currently has around 1,200 customers and more than 1,350 cars in operation. By the end of 2021, the company wants to cross the border of two thousand rented cars. “The figures for January and February this year confirm that demand is growing due to the declining need for car ownership and the unclear economic outlook,” notes Szabó.
The growing popularity of flexible leasing is also evidenced by events beyond the Czech borders. The British used car platform Cazoo recently announced the purchase of a German long-term rental service for Cluno and a similarly focused British company, Drover.
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Car manufacturers are also catching on with the growing trend. Volvo and Porsche, for example, are active in the market, and the Swedish carmaker announced that it had doubled its subscription number last year. However, other manufacturers are leaving the market after timid attempts. At the end of last year, Audi and BMW suspended their activities in the area of car subscriptions. However, Audi recently announced that it will offer its cars in the UK through an Onto subscription service.
Unlike operating leasing, car subscriptions are more flexible. Operators of these services usually offer the option to terminate the subscription at any time and return the car, or exchange it for a vehicle of another category.
According to Which Allied Market Research had a value of the global automotive subscription market for 2019 of $ 3.5 billion. It should reach $ 12 billion by 2027.
