Car subscriptions on the rise

According to a new Deloitte survey, 20 per cent of German consumers are interested in car subscriptions, while interest among 18 to 34-year-olds is even higher at 29 per cent. The flexibility and the fact that no long-term contracts are required speak in favour of car subscriptions.

Matthias Schmidt, independent automotive analyst with a focus on the German automotive industry, emphasises the growing importance of car subscriptions for German consumers: »Car subscriptions are increasingly appealing to German consumers, especially in cities like Berlin and Munich, where they offer flexible access to cars without the commitments and ties that come with ownership. This appeals to city dwellers looking for freedom and more choice.«

Car dealers see potential in car subscriptions

Jesper Hill-Kjærsgaard, CEO of car subscription service :Dribe, notes that German car dealers are showing increasing interest in integrating car subscriptions into their business model.

»We are often contacted by car dealers, especially from urban areas, who fear losing market share if they don't adapt to the growing demand for car subscriptions,« says Jasper. »Companies see new opportunities in a plug-and-play solution. It makes it possible to implement a subscription service without high investment sums. Automated processes and simple administration as part of a streamlined digital solution reduce the need for manual labour.«

Market niche for fleet managers

The interest from car dealers is a natural consequence of market demand, believes David Bailey, Professor of Economics at Birmingham Business School: »I'm not surprised that car subscription services like :Dribe are attracting a lot of attention in franchise contexts. There is a gap in the market for fleet managers who want to utilise this type of service. Across Europe, the market is set to grow significantly.«

Simple entry into electromobility

According to David Bailey, the increasing interest in car subscriptions on the part of car dealers is partly due to the new opportunities offered by subscription services in the field of electric cars.

»Car subscription services such as :Dribe offer a low-risk entry into the initial use of electric cars. In my opinion, this will be the key to the further spread of electric cars,« explains Bailey.

This has also been the experience at :Dribe: »The higher purchase costs of e-cars are due to the expensive batteries and modern technology and can be a barrier for consumers. Car subscriptions can be a taster solution with a short-term commitment and thus meet consumer demand,« says :Dribe's CEO Jesper Hill-Kjærsgaard.