BMW has become the latest OEM to partner with the relatively new subscription startup ViveLaCar, following the lead of Hyundai last month.
The Stuttgart-based auto subscription platform officially launched mid-last year and wasted little time in gaining the approval of Hyundai on May 5, which has helped carry the product to Austria in the company’s first national expansion.
Martin Rada, managing director of ViveLaCar Austria, said: “Today's customers expect simple digital processes and personal service, and ViveLaCar combines both. We bring subscribers and dealers together. For many customers, it is important to have a personal contact person, who can be found in the Hyundai dealership”
Following this success, the startup gained the attention of BMW Group which – in a white label cooperation – requested that ViveLaCar build them a new subscription platform for the Swiss market entailing a different currency, three national languages and a different tax rate in each canton. Thanks to this new partnership with BMW, the startup is delivering it’s second international expansion, this time into Switzerland.
With the BMW and Mini subscriptions available on two online portals, a variety of vehicles with different specifications are available for consumers. Bookings are handled digitally, and the collection and return process is then carried out at the respective BMW or Mini partner.
Mathias Albert, founder and chief executive officer of ViveLaCar, added: “The start in Switzerland is the next big step for ViveLaCar, and by doing this we are simultaneously opening the door to other markets.”
Already seeing strong growth, the number of subscribers on the platform had been growing by over 50% per month at the end of 2019, and the range of available vehicles has more than doubled since it’s conception.
Hinting at the effects of the pandemic on subscription companies, Albert continued: “I think the end-customer’s individual life situation is often decisive for the use of a vehicle on subscription. Because those who do not know today what will be tomorrow do not want to commit themselves, they want simple mobility at a transparent fixed price. In addition, the end customer appreciates the opportunity to use new technologies, new brands or new models flexibly and without risk.”
Cooperation-fuelled growth
Alongside the news of the BMW and Hyundai partnerships, the mobility startup has welcomed a collaboration with insurance firm Zurich Insurance, to offer fully comprehensive and liability insurance for both the vehicle and driver.
According to the company, electric vehicles currently available on the platform will also be secured by Zurich in the future, and the tailored ‘E-module’ then intervenes in the event of damage to the battery, theft of the fuel card or tampering with the vehicle software.
The Munich branch of digital transformation and consultation service provider Deloitte Digital, aided the development of ViveLaCar and has announced its plans to continue accompanying the founding team, offering advice during its development and expansion phase.
Furthermore, the startup has entered a technology partnership with ZF Car eWallet, a company offering a vehicle dongle used to accurate billing for the subscriber and is capable of enabling additional services in the future.
Albert said: "With Zurich Insurance, Deloitte Digital and ZF Car eWallet, we have been able to gain three powerful partners in order to become even more attractive to our subscribers in terms of technology and service in the future."
Florine von Caprivi, co-founder and chief strategy officer of ViveLaCar, added: "Currently, we are working on further expanding the dealer network. The local presence of a branded dealer is crucial for many end customers, who want a competent contact person for the handover, the explanation of the vehicle and future service and maintenance.”
New senior appointments
Wasting no time in solidifying its new-found international reach, two senior appointments were made. Stephanie Frensel was appointed the new head of OEM & retail business at the company, and is internationally responsible for cooperation with manufacturers, banks and dealers as well as dealer associations.
Next, Gabor Jokuti took the position of head of sales for Germany at Vive La Car, and is set to, address large companies, associations and commercial customers, and manage the distribution of the company in Germany
Selling the software
The concept of a car subscription model is not a new occurrence, auto manufacturers such as Volvo, Renault and Ford have attempted to capitalize on this relatively new sales channel with services such as Care, Vulog and Zipcar respectively.
However, branching out from car subscription, Albert has recently announced plans to sell ViveLaCar’s self-developed subscription software to vehicle manufacturers under license, claiming that the startup may benefit from first-mover advantage in this fresh business idea.
He forecast that this would become a stable sales channel in the future, as more and more auto manufacturers moved into the subscription business although, for now, this remains speculation.
