Pay-as-you-go services are catching on in the automotive industry

As citizens of the vast digital empire, we are not strangers to the phrase “Please subscribe”. These are the words every established and aspiring YouTuber will say to encourage you to watch more of their content.

Casual subscription services like these and more formal ones aren’t new to us. We have been subscribing to a wide variety of things for decades now, like newspapers and gyms. And with the progress of digital technology, we have been able to access entertainment, information and services on demand, through our TVs, our laptops, phones and other mobile devices. This includes streaming services, such as Netflix and meal delivery services too. Today, you can even have a bunch of socks delivered to your door on a monthly basis, if you wish to do so. Such is the expanse of the subscription service industry.

Car Subscriptions

And it should not come as a surprise that the automotive industry has also been adopting this format and technology. Start-ups like Moov by Al Futtaim, Invygo and Carasti have also joined the bandwagon with their multi-brand car subscription services here in the UAE and the Middle East. And they are promoting their businesses by telling customers that they can enjoy a different driving experience by changing their vehicles, as and when they want. But of course, each membership comes with its own options or fine print. Depending on the programme, you can “rent” their vehicles for a wide range of durations and swap between vehicles too. Besides this, they will also take care of the insurance, maintenance and even deliver the vehicles to you.

We have also seen regular car manufacturers get into this kind of business. The Porsche Passport, Book by Cadillac and Care by Volvo are some of the setups created by traditional car makers. Now, why would they indulge? Well for one, reach and publicity. As per one source, 80 per cent of people who opt for the subscription service are new to the brand. This basically means that automakers are able to get new customers through the door at a relatively low advertising cost.

On-demand car features

And now they have taken it a step further, by extending the subscription model to specific features within vehicles. Unfortunately, the first impressions haven’t been the finest for some.

Most recently, BMW found itself in hot water as it rolled out the subscription service for heated seats in their vehicles sold across Europe and North America. Yes, you can still get heated seats (and other services) the conventional way, by buying it as part of the car’s standard features. But those who chose not to pay upfront can conveniently opt for this self-warming seat feature only during the chillier months for about 10 to 20 dollars a month, depending on the market. Obviously, this has only been made possible because the infrastructure has been laid out prior to delivering the vehicle, which in this case are the in-seat heating coils and wiring etc. The advantage of this system for owners is that they will be able to afford the vehicle they want and pay for the features when they need them.

Do note that the type of feature and/or services offered by these specific subscriptions may vary market to market. Some other examples are remote start functionality, active cruise control, sport suspension setting, high beam assist and “BMW Drive Recorder”, which uses the car’s external cameras to make video recordings etc.