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What Makes Car Subscription the New Go-to Option?

Krishna Mohan Dubey by Krishna Mohan Dubey
4 August 2020
in Business
Car
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With the COVID-19 pandemic continuing to cause unrest across the world, one thing has become clear – social distancing is here to stay! It will continue to be a part of our lives for months to come, until we discover a definite cure for Coronavirus. In line with this, our choice of transportation and mobility should also involve minimal human contact. The option of using public transport goes out of the window, given the conditions. But what should you then?

In terms of flexibility, privacy, hygiene, and safety, private transportation is the best transportation mode in these times. Though, considering finances due to the pandemic, purchasing a car will not prove to be a smart choice. This is where car subscription models enter the picture. Sign up for it when you want it and enjoy a sense of self-reliance in planning and taking any trip as per your needs.

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Car

Car subscription services might even be considered as the safest option in today’s scenario as some companies adhere to strict safety measures such as using innovative technologies for keyless entry systems that help minimise physical contact. They have even come up with subscription models that are convenient, affordable, and safe. Reputable car rental and subscription companies like Zoomcar offer several advantages to subscribers such as self-drive cars, thoroughly sanitized vehicles, varying subscription period validity. Besides this, when you subscribe to a car, you do not even need to make any down payment or pay for insurance or repair and maintenance charges. The subscription-based car market is slowly becoming popular with a projection to grow at a CAGR (compound annual growth rate) of 15-20%.  Let’s take a look at how car subscription models are becoming the latest go-to option:

Increase in Popularity

Owning a car is considered to be a status symbol in India. However, due to the current pandemic, people are avoiding purchasing cars due to job losses and not to mention the insurance premiums. Thus, people are preferring to rent a car on a monthly basis, rather than purchasing it.

As per the Automotive Subscription Services 2020 Global Market Report, the worldwide automotive subscription-based market is set to increase by $9.15 billion by 2020, progressing at a CAGR of 64%.

With the lockdown being relaxed in several states and offices resuming proper operations, there is set to be a spike in demand for monthly car hires.

Another reason for the popularity of these services is attributed to the fact that people are nervous about taking public transport. This is because it would increase their chances of contracting the virus, so they are opting to rent a car for a month to travel privately and safely.

Movement Towards Subscription-Based Services

The concept of car subscription is not new, but it has gained massive popularity only recently, especially among the millennial population. Millennials are preferring to subscribe to a car as compared to buying one as it is a hassle-free experience with reasonable prices, zero down-payment, and a short lock-in period. Subscription-based models are also popular among people who love experimenting and do not want to be tied down to a single car. They are also convenient for people who have transferrable jobs because they don’t have to transport their car every time they move to another place.

Leveraging Technology for Improving Customer Experience

Apart from the advantage of personal mobility, another reason why car subscription models are becoming popular is due to their use of technology to improve the customer experience. Driven by machine learning algorithms and artificial intelligence, car subscription brands are leveraging best-in-class technology to ensure the safety of customers, especially in these testing times. From keyless entry systems and thorough sanitization of the cars, companies are placing hygiene and safety-related best practices right at the top.

Personal Mobility on the Rise with Car Subscription Services

The Coronavirus Pandemic has sped up the winds of change blowing through India’s automobile sector, especially in terms of the car subscription services. The rate at which car subscription models are gaining popularity provides an insight into how Indian consumers are now viewing personal mobility and ownership of a four wheeler. This model is well on its way to disrupt the industry, and its future looks immensely bright!

Tags: AutomobilesCarCoronaCOVID-19ZoomZoomCar
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Comments 1

  1. Malik Khan says:
    4 years ago

    All India tour and taxi is the cheapest taxi service provider all over India.

    http://www.allindiatourandtaxi.com

    Reply

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