Car subscription services under the Stellantis umbrella are set to expand into a total of six American states by year’s end, according to a press release on April 29. Called Car On Demand, the subscription program that has been successful in European markets will provide an alternative to traditional car ownership in select markets on this side of the Atlantic.
The car subscription service is being administered by Stellantis’ mobility services brand, Free2Move. The aim is to tackle a transition from public transportation and mass transit to the more protected and personal option that driving affords, although without the long-term commitment.
Car On Demand’s model integrates the price of “insurance, assistance, and maintenance” into a single monthly price, according to the Free2Move website. Flexible contracts and a digital platform will let prospective drivers choose from a range of models across the Stellantis brands.
“We’re excited to bring our ultra-flexible subscription and service to the U.S.,” said Brigitte Courtehoux, Free2Move Brand CEO, “This market is among the most competitive and open to new mobility and vehicle access models, and we’re confident Car On Demand will further broaden consumer interest in this option.”
Free2Move is expanding the American services beyond what’s already in place – a carsharing service in Washington, DC that’s also set to open up in Portland, OR.
Targeting affluent markets to start
Free2Move is setting its sights on markets that trend toward high-value and luxury models, particularly leases. The logical launch location has been identified as Los Angeles, a city that has the highest penetration of luxury vehicle leases in the nation across its six million registered vehicles.
Other markets will be announced in the near future, and they can be expected to be similarly affluent cities. Car On Demand’s pricing model starts at $699 per month for the all-inclusive subscription. Subscriptions are month to month and require 10 days’ notice to opt-out.
Playing catch-up in the industry
Free2Move is far from the only provider offering car subscription services in the United States, with most targeting the premium and luxury markets. Porsche Drive has both subscription and rental options in five major cities. Care by Volvo offers monthly subscriptions for seven states across a range of models.
However, the subscription model hasn’t been to the epitome of success. In mid-2020, Mercedes-Benz Collection ditched their subscription service after just two years shortly after Cadillac did the same and Ford sold their service, Canvas, to Uber’s Fair subscription offering.
Perhaps entering the subscription market late is a move that builds off the experience of others, particularly as Free2Move has just launched their eSolutions website including charging systems of various sizes to make an electrified future more attainable. Free2Move is committing resources to sustainable energy and it can be inferred that a fleet of EVs will be available with Car On Demand eventually – likely in Europe first where EV adoption is well ahead of the US.
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