The Netflix of cars... What Volkswagen's going for. This month, the car giant launched an electric car subscription service in Germany to accelerate its creatively-named “Business Model 2.0.” Volkswagen's goal: transform from a car manufacturer to a "mobility services provider."
Flexible like pandemic leggings... A typical car lease locks you in for two years. VW's subscription is flexible, with a three month minimum. This week, VW also showed its commitment to low-commitment mobility by filing an offer to buy European rental car giant Europcar. Europcar's 350K vehicles at airports and train stations could support the expansion of VW's subscription footprint.
The new generation is "low commitment"... That requires high-flexibility biz models. Even pre-pandemic, Millennials were moving more often than previous generations. During the pandemic, people moved from cities to suburbs and Airbnbs, and from offices to "work-from-anywhere" locales. 70% of US companies will continue offering remote or flexible work options. And over a third of Gen Z and Millennial workers are looking for new jobs. When you don't know where you’ll be in two weeks, long-term commitments are daunting. Now, more car manufacturers might adopt flexible subscription models.