Leading EV Subscription Co. Launches New SaaS Platform in Partnership with Deloitte
August 11 2024 - 6:00PM
Business Wire
Autonomy, the leading EV subscription company, announces it is
pivoting from vehicle subscriptions to launch a new SaaS business,
Autonomy Data Services (ADS), in partnership with Deloitte. ADS has
secured $2.5 million in new funding and completed a $32 million
debt-for-equity swap, along with acquiring all subscription-related
technology and intellectual property.
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Deloitte and Autonomy team at the Move
America Conference in Austin, Texas. September 2023. From left to
right: Rodolfo Dominguez, Jim Nguyen, Heather Weiss, Alexander
Kantor, Ann Marie Jacobs, Mac Makhni. (Photo: Business Wire)
The automotive landscape is experiencing significant shifts,
particularly with the chaos surrounding residual values and their
impact on ownership for both consumers and fleet operators.
Autonomy has survived these turbulent times and is emerging
stronger, pivoting to a renewed focus on technology and
subscriptions.
Subscriptions have proven their efficacy: the technology is
robust, vehicles are performing well, and there are low
delinquencies and defaults. Strong consumer demand, driven by lower
prices and an easier process, coupled with high utilization,
confirms the effectiveness of the subscription model.
“With Deloitte as our partner, ADS is set to expand its market
reach by leveraging Deloitte's extensive network and expertise,”
said Scott Painter, founder of ADS. “This partnership positions ADS
at the forefront of the evolving vehicle subscription market,
enabling the provision of innovative solutions without the burden
of debt or residual risk.”
ADS introduces a new business approach with no debt or residual
risk. Its licensing and SaaS revenue model will cater to OEMs,
captive finance companies, fleet operators, rental car companies,
and car dealerships seeking to implement subscription offerings.
This model is already operational and generating revenue with
existing clients.
As part of its strategic shift, ADS has acquired key assets from
Shift, Canvas, UberXChange Leasing, and Fair. The acquisition,
valued between $10 to $12 million, provides a solid foundation for
the company's new business model. The acquired intellectual
property includes brand names, domain IP, compliance, legal work
product for 50-state operating licensing, technology codebase,
customer apps, integration mapping, system algorithms, and
extensive data assets.
“The shift to a SaaS model allows ADS to leverage its technology
and data to offer comprehensive subscription solutions to OEMs,”
said George Bauer, Executive Chairman of ADS. “Here at ADS, we are
now a bigger believer in the subscription model more than
ever.”
The automotive industry is evolving with the rise of electric
vehicles (EVs) and sustainable transportation solutions. In 2024,
the vehicle subscription market is expected to be valued at USD
4.52 billion and is projected to grow at a compound annual growth
rate (CAGR) of 34.2%, reaching USD 35.49 billion by 2031. Consumers
are increasingly favoring flexible, all-inclusive plans over
traditional vehicle ownership.
A 2024 Deloitte consumer study revealed that 45% of US consumers
are reconsidering vehicle ownership, and 28% of 18-34-year-olds
prefer subscription services (29% in Germany). This trend aligns
with ADS's strategy to lead the next wave of innovation in
subscription services and digital mobility solutions.
About Autonomy
Autonomy is a mission-driven company that uses technology to
accelerate the adoption of electric vehicles by making them more
accessible and affordable. The company was founded by Scott Painter
and Georg Bauer, disruptors in the auto retail, finance, and
insurance industries who pioneered the Car-as-a-Service (CaaS)
category with the first-ever used-vehicle subscription offering,
Fair. Building upon that experience, Autonomy is up-leveling its
commitment to carbon neutrality and financial inclusion. Its
customers have driven over 11 million miles to date, saving more
than 9.7 million pounds of CO2 from being emitted into the earth’s
atmosphere. Easier to qualify for than a lease, its low commitment,
100% digital solution allows people to pay monthly on their credit
card and aims to get more people driving EVs who otherwise might
not be eligible or interested in traditional lease or loan
products. And unlike leases of loans, everyone who qualifies is
charged the same rate regardless of FICO score. Autonomy believes
that the future of mobility is electric. It exists to enable that
transition more rapidly through innovations in technology, finance,
and insurance. Autonomy is based in Santa Monica, California.
Follow Autonomy on LinkedIn, Twitter, Instagram, Facebook,
YouTube, and TikTok.
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Asher Gold asher@gold-pr.com
Kai Rodriguez kai@gold-pr.com