By Ben Whitmore >>

WE’RE LIVING in an era defined by convenience and flexibility, where the subscription-based economy has become known across many sectors, with younger generations already learning to navigate a world where subscriptions are the norm. 

From streaming platforms to software and fitness, we’re seeing a clear shift from ownership to access. 

But one sector that's just beginning to embrace this shift is the automotive industry.

Could it be the next big frontier in the subscription-based economy? I believe the signs suggest a resounding yes.

Subscribing to consumer preferences

In recent years, we’ve witnessed a dramatic change in consumer preferences. The traditional idea of ownership is increasingly giving way to a model that prioritises flexibility and convenience, reflecting a broader trend where experiences and freedom are becoming more valued than long-term commitments.

Subscription services embody this change by offering access to products and services without the burdens of ownership. 

We’ve seen this trend play out across various industries.

In entertainment, platforms like Netflix and Spotify have revolutionised how we consume media, shifting the focus from owning physical media to enjoying an extensive library of content on demand. Software subscriptions have replaced long-lasting licences, offering ongoing updates and flexibility.

Even in fitness, subscription-based gyms and classes are catering to our needs. 

Driving a new service approach

The automotive industry, however, has been slower to adapt. While traditional car ownership remains deeply established, vehicle subscription services are beginning to challenge this norm.

For millennials, Gen Z, and expats, this model presents a compelling alternative that fits their fast-paced and unpredictable lifestyles. 

Vehicle subscriptions offer a level of flexibility and convenience that traditional car ownership simply can’t match. 

For those who frequently relocate or lead temporary lifestyles – like international students, short-term workers, and expats – the subscription model provides a hassle-free solution.

These consumers appreciate the ability to swap vehicles based on their current needs without the long-term commitment and financial burden of ownership. 

Unlike traditional leasing or ownership, vehicle subscriptions allow drivers to switch between different models and types of vehicles with ease. This flexibility mirrors the convenience of streaming new shows or accessing new software features – experiences that modern consumers have come to expect. 

Whether you need a compact car for city driving or a larger SUV for a road trip, a subscription service can meet these needs without the hassle of buying or leasing multiple vehicles.

Save on parking and other costs?

Another bonus of vehicle subscriptions is how much you can save on parking and other costs.

We all know that owning a car often means dealing with the headache of finding (and paying for) parking, especially in crowded cities. But with a subscription, you might get access to shared parking spots or even dodge the whole parking issue altogether, since you can swap vehicles as needed.

Plus, many subscription services bundle maintenance, insurance, and registration into one tidy flat fee, sparing you from those surprise expenses that usually come with owning a car.

It’s a budget-friendly, hassle-free way to enjoy driving without all the usual stress.

The rise of subscription-based services across various industries highlights a significant shift in consumer behaviour. Although the automotive sector is still emerging in this space, it can be assumed to become a major player in the subscription economy.

As more consumers seek flexibility and freedom over ownership, vehicle subscriptions may well become the new norm.

The signs are clear: the automotive industry is on the brink of a subscription revolution, and the future looks bright.

www.ecarsubscription.com.au

About the author  

Ben Whitmore is the chief marketing officer (CMO) for both eCar Subscription and East Coast Car Rentals. The eCar Subscription service aims to revolutionise the way consumers view car ownership in a subscription-based society. Developed by East Coast Car Rentals – founded in 1979 – the new eCar Subscription service has been making waves in the Australian automotive market, offering flexible and tailored plans to suit individual needs. It allows consumers to access the latest vehicles without the long-term commitment of ownership. www.ecarsubscription.com.au

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By Leon Gettler, Talking Business >>

IMAGINE being part of a car sharing business that you can turn into a side-business or hustle.

That’s the promise of Turo, a global car sharing marketplace that offers utes, hybrids, sports cars, vans and electric vehicles (EVs).

Tim Rossanis, Turo Australia's managing director, said guests can book any selection of vehicles on the platform, which is still relatively new to Australia.

“It’s powered by a community of hosts who place their vehicles on the platform to share them and monetizing the assets that would otherwise sit idle in their driveways – sometimes 90 percent of the time – monetizing them and turning them into a small business,” Mr Rossanis told Talking Business.

“They can share their cars and provide a new mobility option for people to get around town.” 

Mr Rossanis said the amount of business hosts would receive from Turo varied from host to host. It depends on how available their cars will be, and how many cars they will have to offer. They also get to set their own price.

“For us, it’s very much about giving people flexibility to run their side-hustle or business in the way they see fit,” Mr Rossanis said.

“Some people treat it as a side hustle, so you will have hosts with one or two cars and they’ll have one booking every couple of days, or a couple of bookings a week, and it’s just a good way of offsetting the cost of car ownership,” he said.

“Then we have what we call business hosts and professional hosts who have more than two, sometimes 10 vehicles in their fleet, renting those cars out on Turo. That’s where it’s a legitimate business where people can be making tens of thousands of dollars.

“In the US, we have hosts who are clearing millions of dollars a year who have significant operations. It’s creating an additional way of monetizing an asset that might otherwise be owned by a big traditional car rental conglomerate and instead shifting the benefit of that asset to the local community.”

Small Aussie car rental operators utilise global network

Mr Rossanis said there were many small car rental operators in Australia who had their own websites and were driving traffic to their pages, using Turo to take advantage of the network effect of a global platform attracting the international travellers coming to Australia.

He said the fact that Turo was built as a community enterprise meant it offered customers more hospitality than car rental companies.

“You might have to go into a shuttle and you (often) wait in line for 20 minutes for your turn and they give you the keys to the car, but it’s not the car you booked. You booked an economy vehicle but they don’t have any left so they gave you a compact vehicle,” Mr Rossanis said.

“That’s very different to the hospitality of Turo where the host, who runs that business, might drop the car at the gate. So as you exit the airport, you have the car pull up. They hand you the keys, check your driver’s licence, take some photos of the car and that’s it,” Mr Rossanis said.

“And the host, they live in the location where you’re travelling. They can give you advice about the destination where you’re travelling (to). It’s just much more hospitable.” 

www.turo.com 

www.leongettler.com

Hear the complete interview and catch up with other topical business news on Leon Gettler’s Talking Business podcast, released every Friday at www.acast.com/talkingbusiness

https://play.acast.com/s/talkingbusiness/talking-business-7-interview-with-tim-rossanis-from-turo

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THE Housing Industry Association (HIA) is concerned about the impact the Federal Governments fuel emissions standards will have on the cost of doing business for tradies, according to HIA chief executive for industry and policy, Simon Croft.

“The Federal Government has stated that the new emissions standards won’t increase the costs of utes, 4WDs or other light-commercial vehicles nor restrict access to these types vehicles going forward," Mr Croft said.

“But other industry experts claim to have modelling that shows the new laws will add significant upfront costs and are likely to result in car manufacturers needing to scale back the key types of vehicles that our industry relies on to run and operate their businesses.

“At the moment there is no viable alternative to replace these vehicles," he said. 

“The building industry hasn’t been directly consulted on these new emission standards, despite their potential direct impacts and we would encourage the Federal Government to engage with our industry on the timing and introduction of the proposed new laws.

“Over the past three years, the building industry has faced significant construction price increases, arising from material and labour shortages, as well a range of changes to building, WHS, taxation and business compliance costs.

“Any further added costs, complexities or regulatory impediments being layered over the top of our industry at this time will only make their jobs harder and have downstream impacts on housing supply and affordability," Mr Croft said.

“HIA understands the intent of the proposed emission standards in reducing fuel costs and lowering emissions, however, the uncertainty of new laws and lack of information being released is not helpful.

“Therefore, we would encourage the Government to release their modelling to provide clarity and certainty on the new proposed laws to allow industry to adequately gauge the impact of the laws.

“If the government wants to build 1.2 million houses in five years it needs to consider the needs of the workers who are responsible for reaching that target," Mr Croft said.

www.hia.com.au

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SEA ELECTRIC, the Australian all-electric commercial vehicle innovator, is collaborating with insurance giant Zurich – through its Zurich Resilience Solutions (ZRS) group – to assist global fleet transitions to sustainable technology.

SEA Electric Australia sales director, Joe Di Santo said the Zurich brand globally represented quality and integrity, with its risk engineering team of around 800 engineers set to work with SEA Electric customers to enhance their EV switch. 

ZRS provides specialised insights and tools – above and beyond insurance – to help companies across a wide range of industries manage traditional and evolving risks to become more resilient. Services are provided across a number of domains, including climate change resilience, supply chain risk, and cyber security.

“The Zurich brand is highly respected within the industry, so to be working in combination with them moving forward has significant positive outcomes for both businesses, and, importantly, SEA Electric customers,” Mr Di Santo said. “The offering Zurich brings to the partnership truly has the potential to complement, enhance and complete the purchase of SEA Electric vehicles.

“Transitioning to electric is a big commitment. Our customers look to and rely on SEA Electric for guidance around the implementation of best practice strategy when it comes to the circular economy of commercial electric vehicles. We take seriously our responsibility of connecting our customers with reputable and proven organisations such as Zurich, as we lead the country in the shift to sustainable transport.

“Zurich’s risk assessment service will assist customers in understanding and identifying the many considerations, both short and long term, that come with such a purchase, ensuring they are properly prepared and set-up to scale as needed,” Mr Di Santo said.

“Ultimately with Zurich, we will be able to share learnings and enhance each other’s product offerings.”

Mr Di Santo said SEA Electric would work to assist Zurich customers in their understanding of commercial electric vehicle operations with customer experience days and webinars, while Zurich’s risk engineering department would benefit from ongoing training from SEA Electric’s knowledgeable team.

For Zurich, the partnership confirms the commitment of the business in working with customers to achieve sustainability.

ZRS Australia and New Zealand chief, Mervyn Rea said, “We are delighted that Zurich’s leading risk and resilience capability is supporting commercial EV uptake in Australia. Zurich and SEA Electric share a common commitment to improving the sustainability and resilience of our customers and community and this agreement presents an important opportunity to further this.”

Available now from a nationwide dealer network, SEA Electric introduced the world’s first comprehensive range of all-electric commercial vehicles in 2021, covering models from 4.5t through to 22.5t, which are entirely adaptable to a wide array of final applications.

www.zurich.com.au/business/services/resilience-solutions.html

www.sea-electric.com/en_au

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