Mobility startup ViveLaCar, which already works with Hyundai, BMW, Mini and Renault, aims to expand its car subscription scheme to France, the Benelux countries (Belgium, Netherlands, Luxembourg) and eastern Europe this year.
The goal is to have its online platform operational in France by late summer and in Hungary and the Czech Republic before year-end.
Currently Renault and Hyundai collaborate with ViveLaCar in Germany while BMW and Mini use the startup's service in Austria and Switzerland.
In addition, Renault will add another subscription scheme using VivaLeCar's technology in September in Switzerland, where the startup will also soon offer a subscription platform open to all brands. It currently has an open-brand platform operating in Germany and Austria.
The company estimates that it is processing nearly 200 subscriptions a week.
Disruptive to used car sellers
The company, which was formed in 2019, has no trouble collaborating with traditional dealers because it returns up to 75 percent of the revenue that the subscriptions generate. The retailer receives a monthly payment and the car is returned to the dealership at the end of the subscription.
"We are disruptive to the used car business, not the traditional dealer's business," ViveLaCar founder and CEO Mathias Albert told Automotive News Europe.
He said automakers like using ViveLaCar's technology because the brand experience remains consistent. While the customer goes to a separate website, such as www.BMW-Abo.at, the pages are distinctive to that automaker, with only a small logo saying that the subscription is "powered by ViveLaCar.
ViveLaCar covers the insurance costs and keeps its overhead low because it doesn't own any of the cars in the scheme.
Albert said customers appreciate that 95 percent of ViveLaCar's vehicles are available immediately, that the entire transaction is done digitally, that they can cancel with three months' notice, and that they can pick their own kilometer package each month. That means if they're going to be on vacation and won't need the car they can pick a small kilometer package, which saves them money.
Albert added that he would like ViveLaCar subscriptions to account for 10 percent of the Germany's roughly 48 million vehicle car parc by 2025.
"There are too many advantages," he said, "for the end customer not to use this."