Cadillac is expanding its pilot vehicle subscription service in New York and launching the program in Los Angeles and Dallas.
The General Motors luxury brand said Monday that enrollment in Book by Cadillac is now open to drivers in the L.A. and Dallas metropolitan areas. Cadillac also launched a smaller, private program in early October in Munich, home to rival BMW.
The service is attracting younger customers to the brand and providing a new stream of revenue for Cadillac, according to officials. Vehicle subscription services are seen as an emerging trend in the automotive industry -- particularly luxury -- that can be an alternative to traditional leasing or purchasing.
Melody Lee, who was recently appointed global head of Book, said the new markets were chosen based on several factors: customer interest in the program, size of the local luxury market and Cadillac's potential for sales growth.
"One of the overriding objectives for Book is to bring people who are completely new to the brand into closer contact with our products and the Cadillac experience," she said.
Book gives subscribers on-demand access to Cadillac vehicles for $1,800 a month -- up $300 from the initial launch -- without the commitment of leasing, financing or purchasing. The cost includes registration, taxes, insurance and maintenance.
Members use a mobile app to reserve vehicles that will be delivered to specified locations via a white-glove concierge service. They may exchange vehicles up to 18 times a year.
The New York pilot program started in March and has drawn global attention. Cadillac said 8,000 people, including 1,500 in greater New York, expressed interest in joining the program. Of those interested, roughly 90 percent had not previously owned a Cadillac.
Cadillac also is increasing the number of vehicles in its New York fleet to accommodate additional members. Cadillac has declined to discuss how many people and vehicles have enrolled in the program, however, Lee said there are now "several hundreds" of vehicles available in the U.S.
Cadillac is now limiting subscribers to a maximum 2,000 miles per month. The mileage restriction covers all participants; the price increase applies to new users only.
The changes, according to Lee, were made following a review of the New York program. GM wants to protect residual values of vehicles in the brand's portfolio.
"It's just another step in the forward process of the program," Lee said regarding the price increase. "We're going to continue to test and define, and things will continue to change as we learn more in the markets in which we're going."
Cadillac is analyzing additional markets to expand Book but has nothing to announce now, according to Lee. The long-term goal is to give subscribers access to Book vehicles wherever they travel internationally.
Available Cadillac vehicles include top-end XT5, CT6, CT6 plug-in hybrid, Escalade, ATS-V and CTS-V models. The company's recently launched Super Cruise semiautonomous highway driving system also is available with the CT6.
Lee, echoing recent comments by Cadillac's chief marketing officer, Uwe Ellinghaus, said it is especially important to offer Super Cruise as an example of new technology Cadillac is bringing to market.
"Overall, we see this as an opportunity to show off some of the amazing products that we have and within those products some of the leading-edge technologies," she said.
