We live and breathe in the subscription economy. More and more companies are joining the fast-growing world of subscription business models. The motivation to do so comes from the simple fact that customers are moving away from ownership and more so in the direction of usership. In our study from last year (2020), we found that both the awareness and the acceptance of such access models/rental models increased over the previous three years from 34% to 80%.
From streaming giants like Netflix and AmazonPrime to physical product-based companies like Audi and Volvo, everyone is following suit. As the number of vehicles sold declines over time, the number of miles driven continues to rise. It's not the end of the automotive sector, just a rebalancing of priorities.
According to Global Market Insights, the car subscription market was at $3.35 billion in 2019 and is expected to generate $40 billion by 2026 with a CAGR of 40%. According to the PWC study, the overall potential of the rental industry is $670 billion by 2025.
Who is driving the trend? Is it large corporations exploring an additional selling opportunity? Or is it small to medium-scale organizations harnessing the power of the internet to generate recurring monthly revenue?
It's the customers.
There is a growing market demand for Mobility as a Service (MaaS) or Car as a Service (CaaS), especially in North America and Europe, due to the rise in the adoption of car subscription services and shared mobility outlook.
The important question here is not whether you, as an eCommerce company, should or shouldn't explore the opportunity of a subscription-based business model. The real question is HOW TO DO IT and HOW TO SCALE if you already have a subscription business model.
circuly makes renting as easy as buying.
aboDeinauto adopted circuly as its all-in-one subscription management platform provider to manage its rental operations and scale simultaneously.
"With circuly, we are able to run our complex subscription model smoothly while staying flexible in our choice of CMS." Says Victor de Maizière from operations at aboDeinauto.
While there are some subscription tools in the market, what makes circuly unique is the fact that it's made for rental business models with a physical product. The complexities attached to running a rental business for physical products is the niche where circuly thrives and outperforms its competitors.
circuly was perfectly able to replace aboDeinauto's existing subscription tool simply because it solved a problem which their existing subscription tool couldn't.
"Its simple "plug-and-play" solution and integration helped us to quickly introduce a new checkout experience to our customers, easily managed by us." Says Victor de Maizière from operations at aboDeinauto.
With circuly aboDeinauto was able to see better results for its existing customer-centric subscription-based car rental business model and scale up to 120% in the first month itself.
The idea of "why only buy when you can also rent" also comes from the customer's mindset that "we no longer want to own a vehicle, we just want to get from A to B in a fast and convenient way."
Access over ownership is HERE!
Here's how circuly is helping companies scale and manage their rental operations hassle-free
circuly provides an order-to-revenue subscription management software for companies with a physical product which either already have a subscription business model or are in the process of launching one. circuly helps companies create further sales potential and bring sustainability to eCommerce. circuly helps companies manage their rental operations smoothly while creating possibilities to scale and empower the dynamic and fast-evolving subscription/sharing industry.
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