THE INCREASING POPULARITY OF MOBILITY-AS-A-SERVICE
Mobility-as-a-Service (MaaS) has become a more common travel solution, especially for urbanites. With the help of digital platforms, people can now easily plan, book, and pay for multiple types of mobility services to help them get from A to B.
One of the mobility services that are currently on the rise is the vehicle subscription model – where consumers pay a regular fee in order to use one or more vehicles without actually having to own any of them.
Subscriptions are becoming a more common way for consumers to access products and services online. In the past 7 years, the subscription economy has grown more than 350%. This trend goes hand in hand with consumers’ search for great and seamless end-to-end shopping/purchase experiences – and it applies to a variety of industries, including mobility.
While the mobility subscription model might be more common for shared public transportation – such as trains, busses, shared bikes and scooters – the concept of vehicle subscription is relatively new for consumers.
From the consumers’ perspective, the idea of vehicle subscription might be similar to car leasing. In reality, it is not the same. The difference is that the subscription model provides consumers with more convenience as they don’t have to take care of various costs like maintenance and insurance, and the luxury to choose their own type of car and to change it whenever they want – which could be the key to encourage faster market adoption and acceptance.
Why is this interesting?
MaaS will continue to thrive in the future, with more companies constantly introducing new mobility services to the market. By 2022, predictions show that the vehicle subscription market will grow by 71%. From a B2B perspective, experts predict that by 2025, 10% of all vehicle sales in the US and Europe could be for vehicle subscription programmes.
Finally, with the forthcoming adoption of 5G networks, MaaS is ready to become more sustainable in providing a seamless commuting and travel experience for consumers.
At ADK Insights, we continue to monitor trends emerging in mobility and translate their impact on consumer behaviours, providing insights to help businesses future-proof their innovation.
To find out more about our experience in mobility and what it could mean for you, please contact Dam.