Wednesday, January 17, 2018

BMW to Test Waters for Subscription Services in the US

The world as a whole is changing due to new technologies and buying things as we used to won’t seem to make sense in a couple of years. If the Netflix phenomenon is anything to go by, more and more companies will be looking to switch to subscription programs instead of the traditional e-commerce model. This also applies to the car industry, with BMW and Mercedes-Benz apparently testing the water to see if a subscription service would make sense.

The news came on the floor of the Detroit auto show via Automotive News and it seems like the two companies have reached the same conclusion so far, both of them wanting to test things in the US first, to see how they’d unfold on the long run. Of course, other markets might have their own specific behaviors once the subscription services become available but even so, they’ll still get a baseline reading of the customers’ reactions.

“We are in the phase of looking at it and evaluating together with BMW Financial Services,” BMW USA CEO, Bernard Kuhnt said. “And if we are going to do it, we are going to pilot it first to learn more about it.” At the same time, Mercedes-Benz global sales chief Britta Seeger said “we need to learn. In different markets, we want to try this out.” That’s exciting news if you were never too into owning the car you’re driving.

On the other hand, the cost will be one of the key elements which will make or break such a proposal. That’s because if it does become reality, the mileage limits will most likely be quite severe to make sure the cars don’t lose too much value over time. On the other hand, whenever you just want a convertible or an SUV, you can just get one from BMW and have fun with it for a few days, not having to buy it or rent it. Either way, would you be interested?

The article BMW to Test Waters for Subscription Services in the US appeared first on BMW BLOG



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