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 subscriptions
Cox Automotive is backing two vehicle-subscription services. Here’s how they differ.
Clutch
Flexdrive
Demographics
Well-to-do
Subprime customers
Vehicles
Luxury and near
Used; mostly 2-3 years
Change vehicles
As often as desired
As often as desired
Enrollment rules
Age 21, valid license, clean driving record required
Age 25, valid license, no credit check; clean driving record
Fees
$250 to join; $1,450, $950, or $450/month
$150 to join; then weekly or 28-day fees vary by vehicle
Available in
Atlanta; Winston-Salem
Atlanta; Austin; parts of N.J.
Source: Companies
Flexdrive
