Where Subscription Services Are Heading – Dale Pollak

Vehicle subscription

CBT Automotive is joined again by industry leader Dale Pollak to talk about the highly anticipated launch of vehicle subscriptions in the automotive industry and learn what he believes we will see in the future with the business model.

Owning a car is becoming more expensive. From the initial price of a vehicle to insurance, and occasional maintenance, for too many owning a car might be more responsibility than consumers want hence the development of vehicle Subscription Programs. From Ford to BMW we are seeing leading car brands join the monthly subscription-based concept.

Dale Pollak does a great job informing our audience on what this means for the industry and where the appeal to join lies for both consumers and brands.

vehicle subscriptionPollak explains, “so the future of the industry has got to be all about reducing the cost of vehicular transportation. Essentially reducing the cost per mile. So, when I think about the future of mobility, it’s something that some people often think about using that awful that starts with an S, is the fact that we need to get a lower cost per mile in a vehicle. Now there’s only a handful of ways you can do that. You can reduce the price of a vehicle, which I don’t think we really ever can or will. Alternatively, I can say to you, ‘If you just simply drive more miles every day, Bridget, your cost per mile will go down,’ you’ll amortize the number of miles you travel over a fixed cost, and the cost per mile will go down. But, that’s not very realistic.”

In addition, Pollak shares that the ultimate goal would be to reduce the cost of traveling and has some ideas on how that would look. “one person basically is tied to one car, to what I refer to as a one too many model, where one person in the course of a day might use may different vehicles. And one vehicle in the course of a day might be used by many people. And when we get to that one too many model, which we will, then the cost of transportation, driving a mile will go down.”