- Findings from FINN support new BCG study identifying key trends and success factors for fast-growing market
- The average user age is about 40 years
- 78% have never driven a new car
- 62% live in places with less than 500,000 resident
- 26% have subscribed to a battery electric vehicle in the last 12 months
NEW YORK, January 10, 2023 /PRNewswire/ — FIN, the leading car subscription platform in the US and Germanyannounced today that the adjusted and aggregated data it provided on consumer patterns and demographics was featured in a study by a leading management consulting firm Boston Consulting Group (BCG) focuses on the car subscription market. Co-produced with BCG’s Center for Mobility Innovation, the study, titled “Driving Success in Car Subscriptions,” examines best practices for success in the industry and uncovers the benefits offered to car subscription companies, as well as OEMs and dealers, by the emergence of this business .
Key themes of the study include: how car subscriptions are avenues for owning and selling electric vehicles; how auto subscriptions are an e-commerce gateway for auto retail; and the consumer appeal of car subscriptions to first-time car buyers.
Based on the discussions with the FINN leadership, the BCG study outlines “Three rules for subscription success”:
Rule #1: Check customer product priorities
- The price counts more than the contract period.
- Product variety promotes conversions.
- In the case of multi-brand providers, the vehicle type outweighs the brand.
- Customer experience is paramount.
Rule #2: Know the subscription customer
- Customers are younger than shoppers, but the age range is wider than expected.
- Customers are value driven.
- Customers are not just city dwellers.
- They are not only consumers but also small and medium-sized businesses.
Rule #3: Master Unit Economics
- track scale.
- Apply profitability levers associated with vehicle sourcing, pricing and vehicle usage, fleet management and operations, marketing and remarketing.
- Manage risks, particularly related to residual values and fleet financing.
“FINN is pleased to have been approached by BCG for insights for their car subscription market success study,” he said Max Joseph Meier, CEO and co-founder, FINN. “Data shows that car subscriptions are becoming the fourth pillar of access to new vehicles, alongside leasing, financing and purchasing. Together with our OEM and dealership partners, we are building an environment in which the entire industry and our customers will benefit.”
FINN first launched in Germany End of 2019 before expansion The United States in 2022, currently available to residents in 12 states in the Northeast United States of America including new York, New Jersey and Massachusetts as well as Washington, D.C In the first six months in the US, FINN’s subscription business grew twice as fast as in Germany in the first year and simultaneously growing to 27 US fleet partnerships. FINN recently announced that it has reached €100 million in Annual Recurring Subscription Revenue (ARR).
For more information from the report, visit bcg.com.
About FINN:
FINN is a car subscription platform united by their common goal of making mobility fun and sustainable by offering all-inclusive, easy-to-book and quickly available car subscriptions. The car subscription platform offers transparency in pricing as well as comprehensive insurance, maintenance and 24/7 customer and roadside assistance. The company drives consumer acceptance of electric vehicles and offsets CO2 emissions for every kilometer driven by its active vehicle fleet. FINN makes driving seamless and convenient: With just a few clicks, customers can subscribe to a car that will be delivered right to their doorstep in a few days.
SOURCE FINN
