January 06, 2022


Will Car-as-a-Service models replace the traditional sale of new cars?

Intelligent Car-as-a-Service models open up a wide range of additional potential sources of revenue for OEMs through a wide variety of services and online products. However, the right strategy is needed to fully exploit the new potential.

Fewer and fewer consumers buy cars

As fewer and fewer consumers are buying vehicles from car manufacturers, the latter are increasingly moving towards marketing their vehicles on a pay-per-use basis through car-sharing, car-subscription and other car-as-a-service concepts. This is not only about money, but also about environmental aspects and concerns about traffic congestion in large conurbations where residents usually do not need or want their own car anyway. There are car manufacturers today who already offer their vehicles mainly as car subscriptions,such as Lynko.

Extending the reach with new business models

Simultaneously, the business models of car rental companies are also changing. Going forward, they will abandon most or even all stations and offer their vehicles as a "free floating fleet" similar to car sharing providers. This means that customers do not rent the vehicles at a fixed rental station, but locate the vehicles on public roads via an app, start the rental and simply drive off. These new business models help car rental companies expand their reach. They also offer them the opportunity to significantly increase their revenues while reducing costs, especially if they can offer the existing vehicle inventory to end customers in cooperation with third-party providers.


More flexibility and service for consumers

Leasing companies, car subscription and car sharing providers offer more flexible models with higher service levels. For example, customers do not have to worry about the maintenance of their vehicle, which saves time and money. On the other hand, insurance and vehicle tax are usually already included in the respective fee and thus covered. Additionally, with most car subscription providers, vehicle delivery to the end customer's door is also included in the price.

The rise of mobility start-ups

The business models of vehicle manufacturers (OEMs), car rental companies or leasing providers are being blurred. In addition to the supplier-customer relationship, a competitive situation is increasingly emerging. In this phase of radical change in the mobility market, additional mobility start-ups are entering the scene, unencumbered by encrusted structures, with strong IT know-how and solid investments from venture capitalists with innovative business models.

In addition, traditional automotive service providers could quickly be left behind by the new competitors in the market if they do not invest in new sensible logistics and IT systems.

How can ONLOGIST be of help here?

The ONLOGIST platform makes it very easy to commission services such as car transportation from A to B, car washing, pick-up and drop-off or even re-location. No time-consuming sourcing is necessary - you get access to thousands of qualified service providers who can carry out the services you have ordered within a very short time.

In addition, digital protocols and tracking are available to you in real time.

Would you like to learn more about ONLOGIST? You can easily contact us. We will be happy to advise you on your individual needs and offer you the opportunity to test our platform.