From enterprise cloud computing and cyber security systems to Disney movies and vegan chicken nuggets, the economy has undergone a radical shift over the last few years. The emerging trend of on-demand offerings purchasable over the internet - often as part of an ongoing subscription - is predicted to create a market that exceeds $345bn per year by 2026.
Just as companies looking to adopt a new cloud architecture or cyber security system are increasingly likely to lease the use of one from AWS, Microsoft, Salesforce - the list goes on - rather than build their own solution from scratch or buy outright something that will require updates and ongoing maintenance. Theas-a-service market is as much about purchasing expertise and peace of mind as it is about price, as owning everything from a piece of software to a Volkswagen Jetta is, as my car-driving colleagues assure me, an inexhaustible void that gobbles up time and money like a collapsing black hole.
Last year in the UK, the average driver in London spent 595 per month on owning and operating their vehicle. While London is famously more expensive than the rest of the country, in East Anglia - one of the cheapest places to own a car in the country - the average driver spent 437 per month, which represented 24% of their income. In an economy where the minimum wage has drifted further from the rate of inflation for decades, and political (potential) catastrophes like Brexit on the horizon, companies and consumers are welcoming the flexibility and peace of mind that come with an XaaS economy.
In the same way that the rise of subscription-based streaming services have reshaped the way we listen to enjoy music (in the first quarter of this year, streaming services accounted for 80% of the music industrys revenue) are we on the verge of a new age of mobility-as-a-service?
Well, maybe is the answer, as a number of early-mover vehicle subscription services have struggled to find a foothold between car ownership and the growing micro-mobility market (e-scooters and bicycle rentals that have become commonplace in urban environments that are increasingly hostile to cars) but there are a number of companies hoping that their business models will allow them to stand out enough to find a permanent niche. Gigabit Magazine explores the growing ranks of startups and corporations offering car ownership as a service around the world.
Big business?
Some of the earliest movers into the car subscription space were those with the scale and, more importantly, cars to do so. In addition to rental companies like Hertz and Enterprise, which offer subscription services in addition to their preexisting rental business options, major automaker Ford launched a subscription service in 2017. Through its subsidiary Canopy, Ford offered variable-term leases for Ford owners in San Francisco, eventually expanding to Los Angeles and Dallas. A total of 3,800 subscribers used Canvas to acquire new Ford vehicles.
This month, however, it was announced that Ford was leaving the market, only a few short years after entering it. Canopy was sold to Fair - an app based subscription provider with a 45,000 customer base operating in 30 cities - for an undisclosed amount. The fact that Ford so quickly entered and exited what initially would seem to be such a straightforward market (particularly for a company that makes and has access to a huge number of cars) is a clear demonstration that the car-as-a-service space is more complex than it appears.
"We have had to face the hard reality that despite our efforts, we underestimated the investment and resources that are truly necessary to make our service successful in these complex transportation markets amid a quickly-changing mobility landscape, read a statement from communal short term vehicle company Car2Go released this month. Since 2009, the Mercedes-Benz and BMW-backed company has provided users with hourly car rental services. Now, however, Car2Go (in the process of rebranding to Share Now) is withdrawing its services from Austin, Texas; Calgary, Alberta; Portland, Ore.; and Denver beginning Oct. 31 and Chicago starting Dec. 31.
SEE ALSO:
Canoo
Considering the hardships experienced by major automakers like Ford to turn a preexisting vehicle fleet into a profitable business avenue, building a new (electric) vehicle entirely from scratch and introducing it via subscription service to one of the most congested and complex road networks on the planet may seem a little, well, lets say herculean. However, its exactly what one Los Angeles-based startup is in the process of doing.
Slated to hit the streets in 2021, Canoo recently unveiled its pioneer model last week. The slightly rotund, bread-box of the future vehicle is electric, has a range of around 250 miles and seats as many people as a large SUV.
I would call it a loft on wheels, Ulrich Kranz, the co-founder of Canoo told the Los Angeles Times. It has the interior space of a large SUV and the footprint of a compact car. Predicted to have an operational lifespan of between 10 and 12 years, which is longer than the majority of electric vehicles, Canoo hopes to spread the initial production costs over a greater span of time.
Customers will pay a one-time membership fee up front, followed by a monthly charge for unlimited access to Canoos vehicle. The subscription, which will be reasonably priced, according to Kranz, will be available in Los Angeles and San Francisco (with an East Coast launch up next) and covers registration, taxes, insurance, maintenance and unlimited mileage.
Cluno
Based in Munich, Germany, Cluno allows its clients to book out a variety of cars - ranging from the Opel Corsa to high-end Porsches - for a monthly fee. Clients can reportedly book a car online in as little as three minutes, for a fixed, monthly package price that includes everything except fuel.
Last week, Cluno announced that it had raised around 125mn in debt financing in order to support further growth.
Nico Polleti, Co-Founder and CEO of Cluno said, Car subscription has proved to be very successful as a mobility concept and is on the verge of entering the mass market. As an innovation driver in a fast-paced industry, we want to take our business model to the next level as quickly as possible. Our goals are scaling and, in the long run, internationalization. Both the financial resources, as well as the trust of the financial institutions, are a crucial lever.
SelfDrive.ae
The first of its kind in the United Arab Emirates, SelfDrive.aes new Microlease subscription service launched in the country today. A flexible and convenient on demand monthly car subscription service that offers a new alternative to owning or leasing a car with option to switch cars every month as per his (or her) requirement with no long term commitments, Microlease is predicted to tap into the growing desire for flexibility being expressed by millennials in the UAE.
The company reportedly partners with car manufacturers, dealer networks and leasing companies to offer a range of from economy, to mid size Saloons, compact SUVs, MUVs and 4x4 SUVs.
Soham Shah, Founder & Director, SelfDrive.ae, said "Microlease is one of our custom designed product for the region that would offer unprecedented flexibility to customers for on demand monthly car subscription starting from 1 month going up to 36 months with monthly rates starting from $271 per month. This subscription is open to all and can join by making the first reservation online on our website or mobile interface or just by giving us a call. Microlease is a game changer for the automotive Industry and is the future of on demand car leasing for the millennials."
Yes, he did just refer to SelfDrive.ae's customer base as the millennials, but otherwise its a pretty interesting idea.
More here:
- ISSCC 2024: Inside AMD's Zen 4cThe Area-Optimized Cloud Computing Core - News - All About Circuits - February 26th, 2024 [February 26th, 2024]
- Huawei Cloud: Infrastructure of Choice for AI with 10 Systematic Innovations Unveiled in MWC Barcelona 2024 - Morningstar - February 26th, 2024 [February 26th, 2024]
- Cybersecurity fears drive a return to on-premise infrastructure from cloud computing - Help Net Security - February 26th, 2024 [February 26th, 2024]
- Cybersecurity fears drive a return to on-premise infrastructure from cloud computing - HealthLeaders Media - February 26th, 2024 [February 26th, 2024]
- Huawei Cloud: Infrastructure of Choice for AI with 10 Systematic Innovations Unveiled in MWC Barcelona 2024 - PR Newswire - February 26th, 2024 [February 26th, 2024]
- South Korea Boosts Cloud Computing with $91.5 Million Investment to Propel AI and SaaS Innovation - BNN Breaking - February 26th, 2024 [February 26th, 2024]
- Science ministry to invest 121.9 bln won in cloud computing industry - Yonhap News Agency - February 26th, 2024 [February 26th, 2024]
- Why Microsoft is spending billions on AI and cloud computing in Europe - ITPro - February 26th, 2024 [February 26th, 2024]
- Universities Migrate Research Computing to the Cloud - EdTech Magazine: Focus on K-12 - February 26th, 2024 [February 26th, 2024]
- Top Cloud Computing Skills You Need to Know in 2024 - Simplilearn - February 26th, 2024 [February 26th, 2024]
- Best Cloud Tools of 2024: Unleash Maximum Productivity - Simplilearn - February 26th, 2024 [February 26th, 2024]
- Real-time Analytics News for the Week Ending February 24 - RTInsights - February 26th, 2024 [February 26th, 2024]
- Synadia Raises $25 Million Series B Funding to Meet Massive Demand for Multi-cloud and Edge Computing Driven by AI - PR Newswire - February 26th, 2024 [February 26th, 2024]
- CEO Outlook 2024: 20 Solution Providers On The Cloud Moment - CRN - February 26th, 2024 [February 26th, 2024]
- DigitalOcean beats expectations under the helm of new CEO Paddy Srinivasan - SiliconANGLE News - February 26th, 2024 [February 26th, 2024]
- Securing Kubernetes in a Cloud Native World - The New Stack - February 26th, 2024 [February 26th, 2024]
- How to Build a Chat Interface using Gradio & Vultr Cloud GPU SitePoint - SitePoint - February 26th, 2024 [February 26th, 2024]
- Microsoft to invest $2.1bn in cloud and AI infrastructure in Spain - DatacenterDynamics - February 26th, 2024 [February 26th, 2024]
- Stannah looks to enterprise cloud software to lift IT systems - ComputerWeekly.com - February 26th, 2024 [February 26th, 2024]
- AI vendor finds opportunity amid AI computing problem - TechTarget - February 26th, 2024 [February 26th, 2024]
- Nvidia Worth More Than Alphabet, Amazon - 24/7 Wall St. - February 26th, 2024 [February 26th, 2024]
- VIB spearheads banking innovation with deployment of Temenos Banking Platform on AWS cloud - VnExpress International - February 26th, 2024 [February 26th, 2024]
- Why These 7 Cloud Computing Stocks Should be on Your Radar in 2024 - InvestorPlace - December 25th, 2023 [December 25th, 2023]
- IBM to Buy Software AG's Cloud Computing and AI Assets for $2.3BN - Investopedia - December 25th, 2023 [December 25th, 2023]
- Pass the AWS Certified Cloud Practitioner Certification in One Week - Medium - December 25th, 2023 [December 25th, 2023]
- 3 Cloud Computing Stocks You'll Regret Not Buying Soon: December Edition - InvestorPlace - December 25th, 2023 [December 25th, 2023]
- Cloud Computing Market Predicted to Hit US$1,266.4 Billion by 2028 - TechiExpert.com - December 25th, 2023 [December 25th, 2023]
- AWS chief Adam Selipsky talks generative AI, Amazon's investment in Anthropic and cloud cost-cutting - Omaha World-Herald - December 25th, 2023 [December 25th, 2023]
- Mangata Networks and Microsoft Partner on AI-enabled Edge Cloud Connectivity - AiThority - December 25th, 2023 [December 25th, 2023]
- Democratization of Cloud vs AI: A Case Study - Medium - December 25th, 2023 [December 25th, 2023]
- 5 Drivers Behind the Growth of the GPU Cloud Computing Market - Visual Capitalist - December 25th, 2023 [December 25th, 2023]
- Report: AWS to reorganize sales teams amid slowing cloud revenue growth - SiliconANGLE News - December 25th, 2023 [December 25th, 2023]
- Don't underestimate vulnerabilities in the cloud. Adopt hybrid to stay protected - Best Enterprise Data Storage Software ... - Solutions Review - December 25th, 2023 [December 25th, 2023]
- Innovations, disruptions, transformations expected in 2024 Intelligent CIO Middle East - Intelligent CIO - December 25th, 2023 [December 25th, 2023]
- IBM makes $2B+ deal to add more AI, cloud computing solutions - WRAL TechWire - December 25th, 2023 [December 25th, 2023]
- How to Select the Right Industry Cloud for Your Business - How to Select the Right Industry Cloud for Your Business - InformationWeek - December 25th, 2023 [December 25th, 2023]
- Cloud Computing Market Set to Reach US$1,266.4 Billion by 2028 - Analytics Insight - December 25th, 2023 [December 25th, 2023]
- Cisco to Acquire Isovalent to Secure Cloud-Native Networking - Channel E2E - December 25th, 2023 [December 25th, 2023]
- Cloud-native applications: Unlocking the potential of scalability and agility - ETCIO - December 25th, 2023 [December 25th, 2023]
- Year-in-Review: 2023 Was a Turning Point for Microservices - The New Stack - December 25th, 2023 [December 25th, 2023]
- If AI is the future, radiology needs to look to the cloud - Health Imaging - December 25th, 2023 [December 25th, 2023]
- AI and Cloud: The Proving Ground for Regulatory Resilience in 2024 - Finextra - December 25th, 2023 [December 25th, 2023]
- Cognata Redefines Sensor Suite Selection Processes Through Digital Twin-based Sensor Simulation and Cloud ... - PR Newswire - December 25th, 2023 [December 25th, 2023]
- Microsoft and Amazon the focus of cloud computing probe - Proactive Investors USA - October 5th, 2023 [October 5th, 2023]
- Cloud cover benefits of being on the cloud - The Actuary - October 5th, 2023 [October 5th, 2023]
- AI, Cloud Computing among 36 FREE Online Courses Now ... - Philippine Information Agency - October 5th, 2023 [October 5th, 2023]
- Amazon Web Services isn't trying to win the A.I. race. It wants to own the road. - Slate - July 31st, 2023 [July 31st, 2023]
- The Machines Behind the FinOps Curtain: Operationalizing Your Strategy with AI - ITPro Today - July 31st, 2023 [July 31st, 2023]
- Strengthening security in a multi-SaaS cloud environment - TechCrunch - July 31st, 2023 [July 31st, 2023]
- Oracle Introduces First Cloud Native Secure Cloud Computing ... - PR Newswire - July 31st, 2023 [July 31st, 2023]
- The Power of Cloud Computing: How it's Transforming Database ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- From Headquarters to the Edge: The Future of Cloud in the Defense ... - MeriTalk - July 31st, 2023 [July 31st, 2023]
- 6 Cloud Computing Companies Navigating the Digital Storm in 2023 - GovCon Wire - July 31st, 2023 [July 31st, 2023]
- Government Cloud Computing Market Size, Status and Business ... - University City Review - July 31st, 2023 [July 31st, 2023]
- Cloud Computing in Education Market Forecast, 2023-2029: The ... - University City Review - July 31st, 2023 [July 31st, 2023]
- Global Cloud Computing IaaS In Life Science Market Size and ... - University City Review - July 31st, 2023 [July 31st, 2023]
- What is the Relationship Between IoT and Cloud Computing? - Analytics Insight - July 31st, 2023 [July 31st, 2023]
- How Data Center Interconnect Platforms are Shaping the Future of ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- Revolutionizing IoT: How 5G and Cloud Computing are ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- The Future of Cloud Computing: Database as a Service (DBaaS) in ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- Overcoming Data Privacy Challenges in the European Cloud ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- The Future of Telemedicine in India: How Cloud Computing is ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- Multi-Cloud and Hybrid Cloud: What is the Difference? - Analytics Insight - July 31st, 2023 [July 31st, 2023]
- A New Era of Data Management: The Growing Importance of Global ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- From niche to necessity: GFT's vision for cloud computing ... - Business Leader - July 31st, 2023 [July 31st, 2023]
- ERP, Cloud Computing And Digital Transformation - CIOReview - July 31st, 2023 [July 31st, 2023]
- UMD Smith Offers New January Start Date for MS in Information ... - Newswise - July 31st, 2023 [July 31st, 2023]
- The Impact of Global White-box Server Adoption on Cloud ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- Global Application Transformation: Unlocking the Potential of Cloud ... - Fagen wasanni - July 31st, 2023 [July 31st, 2023]
- BFSI Sector and Asia-Pacific Spearhead the Rapid Growth of Cloud ... - GlobeNewswire - July 31st, 2023 [July 31st, 2023]
- Amazon is investing another $7.8B in Ohio-based cloud computing operations, state leaders say - The Associated Press - June 28th, 2023 [June 28th, 2023]
- Google Cloud Platform: Everything you need to know about Google's suite of cloud computing services - Android Police - June 28th, 2023 [June 28th, 2023]
- Amazon is investing another $7.8B in Ohio-based cloud computing ... - Wilmington News Journal, OH - June 28th, 2023 [June 28th, 2023]
- 11 Key Executives in the Cloud Computing Industry in 2023 - Executive Gov - June 28th, 2023 [June 28th, 2023]
- 10 Multi-Cloud Myths Debunked: Exposing the Facts - TechFunnel - June 28th, 2023 [June 28th, 2023]
- How MTN and Microsoft will transform business operations with ... - TheCable - June 28th, 2023 [June 28th, 2023]
- The Power of Cloud Computing: Revolutionizing Business and IT ... - Tech Critter - June 28th, 2023 [June 28th, 2023]
- FTC Collecting Comments On Cloud Computing, CCIA Offers Input ... - Computer and Communications Industry Association - June 28th, 2023 [June 28th, 2023]
- How AI and Cloud Computing Are Revolutionizing the Insurance ... - Techopedia - June 28th, 2023 [June 28th, 2023]
- HPE Discover final analysis: Navigating the cloud computing ... - SiliconANGLE News - June 28th, 2023 [June 28th, 2023]