Who will order car subscriptions?

Vehicle subscription services are emerging as a new slice of the car-sharing market, and industry leaders are still trying to figure out which model will work best: one aimed at the low-end subprime market, or high-end consumers who want to be able to drive the fanciest thing on the road. Or maybe the market will land somewhere in the middle or somewhere else entirely. Cox Automotive COO Mark O’Neil believes that there will be some demand from consumers for the flex subscription model, allowing customers a third option besides simply buying or leasing cars. So the company is hedging its bets, making ties with two pilot subscription models for mobility services that target very different market segments. Clutch, backed in part by the Cox Innovation Fund, aims at the high end of the market. Flexdrive, a joint venture between Cox and Holman Automotive Group Inc. of Mount Laurel, N.J., has found a niche in the low end. Both promise dealerships a steady revenue stream instead of the one-time revenue of a car sale. Here’s a look at each.Split subscriptionsCox Automotive is backing two vehicle-subscription services. Here’s how they differ. ClutchFlexdriveDemographicsWell-to-doSubprime customersVehiclesLuxury and nearUsed; mostly 2-3 yearsChange vehiclesAs often as desiredAs often as desiredEnrollment rulesAge 21, valid license, clean driving record requiredAge 25, valid license, no credit check; clean driving recordFees$250 to join; $1,450, $950, or $450/month$150 to join; then weekly or 28-day fees vary by vehicleAvailable inAtlanta; Winston-SalemAtlanta; Austin; parts of N.J.Source: Companies Flexdrive

Who will order car subscriptions?

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