At the close of 2023, I made several predictions about the car subscription market—how it would evolve, the trends that would define it, and what innovations we could expect to see in the year ahead. Now, as we near the end of 2024, it’s clear that these predictions not only materialized but also underscored a broader shift in how the automotive industry approaches ownership, flexibility, and mobility.
The Expansion of B2B Subscription Programs: More than Just Leasing
One of our major forecasts was the rise of B2B car subscription models, and 2024 has proven just how significant this shift would be. We’ve seen businesses increasingly turning to car subscriptions as a more adaptable alternative to traditional novated leasing. Companies like Carbar and Origin 360 have led the charge, offering month-to-month subscription options for businesses looking to keep their fleets nimble without the financial baggage of long-term commitments.
Clyde & Co's partnership with Origin 360 is a prime example of how far B2B subscriptions have come. By offering legal professionals the option to include an all-inclusive EV subscription as part of their salary package, they’re not just providing a financial perk—they’re aligning with the firm’s sustainability goals. It’s a testament to how the car subscription model is transforming employee benefits while giving businesses an edge in a competitive labor market.
Used EV Subscriptions: Turning a Challenge into an Opportunity
I also predicted that 2024 would see a surge in used EV subscriptions, driven by concerns over declining EV residual values. This trend has only intensified, with residual values of electric vehicles falling faster than expected. Car leasing companies in the UK have even called for government intervention, highlighting how unpredictable the market has become. But where others saw a challenge, the subscription model saw an opportunity.
Hertz's financial losses from plummeting EV values underscored the need for a more adaptable ownership model which has been met by companies like Car Empire, who partnered with Uber to offer affordable subscriptions for second-hand EVs. These subscriptions have made it possible for more people to drive electric, alleviating concerns around depreciation while addressing demand for eco-friendly mobility. This is precisely the kind of problem-solving that car subscriptions were designed for—offering consumers flexibility in an uncertain market.
The Rise of Micro-Subscriptions: Blurring the Lines
Micro-subscriptions, which I highlighted as a key trend, have undeniably reshaped the market this year. We’ve seen a distinct shift as traditional car rental companies embrace technology that allows them to straddle the line between short-term rental and subscription. Consumers today want the flexibility to access vehicles for weeks or months without the rigid terms of a traditional lease—and the industry has responded.
Hyundai Australia's partnership with Europcar is a perfect illustration of this. Their offering of the Ioniq 5 and 6 on both rental and as part of a myEuropcar subscription package—available for periods ranging from one to twelve months—proving how quickly the lines between rental and subscription are blurring. This model provides a taste of EV ownership without the long-term commitment, aligning with the desire for choice and control that defines the modern consumer.
Partnerships with Vehicle Marketplaces: Expanding Reach and Accessibility
Finally, I predicted that partnerships between vehicle marketplaces and car subscription providers would play a critical role in expanding the reach of EVs and subscriptions alike. This year, we saw some of the industry’s biggest players forge powerful alliances to meet evolving consumer expectations.
Take Uber’s partnership with Splend, which aims to increase the number of EVs available to its rideshare drivers across Australia. This includes not only brand-new models but also second-hand vehicles, catering to a broader spectrum of drivers. It’s not just about offering more cars—it’s about making electric vehicles accessible and affordable, accelerating adoption across the rideshare market. The success of such partnerships has demonstrated that collaboration is key to pushing the entire mobility ecosystem forward.
A Transformative Year for Car Subscriptions
2024 has been a year of validation for the car subscription model. What started as a niche alternative to car ownership has now evolved into a mainstream option, embraced by B2B clients, rental giants, and consumers alike. The trends we identified last year have not only shaped this market—they’ve redefined what it means to "own" a vehicle in an era where flexibility, sustainability, and technology lead the way.
As we look ahead, I believe the lessons of 2024 will continue to inform the strategies of both car manufacturers and mobility providers. We’ve seen that the future of automotive isn’t about simply selling more cars—it’s about delivering smarter, more adaptable solutions that cater to the needs of a rapidly changing world.
The car subscription model’s adaptability has proven itself time and again this year, and if 2024 has taught us anything, it’s that this adaptability is exactly what the industry—and the consumer—are looking for. We’re only just beginning to see the potential of what car subscriptions can offer, and Loopit is excited to continue leading the way.
