Tesla, Fiat electric cars offered on subscription by German retailer Tchibo

BERLIN -- Retail chain Tchibo is giving customers in Germany the chance to drive Tesla or Fiat electric cars by paying a monthly subscription.

Tchibo, which is better known for selling coffee and household items, is offering the Tesla Model 3 for 777 euros ($924) a month. Fiat's New 500 battery-powered minicar is available for 289 euros a month.

The cars can be ordered online and are already preconfigured.

Tchibo has joined with the German car subscription provider like2drive to offer the service.

The Tesla subscription runs for either 12 or 24 months and includes 10,000 km (6,200 miles) a year. Going above 10,000 km in a year leads to additional charges. Meanwhile, the Fiat deal lasts 13 months and includes 13,000 km.

There is no down payment, start fee or final installment, and customers can pick up their vehicle at one of six locations across the country, including Berlin, Munich and Cologne.

For an extra 199 euros, customers can have like2drive deliver the cars to their homes.

After the subscription period ends, a customer either returns the vehicle, signs a new contract to keep using the current car or books a new vehicle.

The all-inclusive rate covers vehicle insurance, seasonal tires and maintenance up to the contractually agreed mileage limit. Customers, however, must pay to charge their vehicles.

Tchibo said those who want to recharge the vehicle at home can order a charging solution from NewMotion at a discounted rate.

"Through this e-car subscription, our customers can test the world of e-mobility at affordable conditions and without having to make the financial commitment of a purchase," a Tchibo spokesperson told Automotive News Europe in an emailed statement.

The offer will run for a limited time due to the number of cars available, the spokesperson said. Tchibo declined to say how many vehicles are available as part of the offer.

Subscription-based plans respond to the needs of an ever-larger group of customers who prefer using to owning and are looking for the flexibly to book the right vehicle in a simple way, said like2drive's managing director, Niels Reimann.

Reimann expects that subscription offers will gain significant momentum because they are more convenient than buying a car from a traditional dealership. "Our customers can do it in less than 5 minutes from any internet-enabled device," he said.

Reimann said like2drive processed 15,000 car subscriptions through parent company Fleetpool Group across all car subscription brands last year, averaging around 1,200 car subscriptions a month, a figure he said hopes will increase through the partnership with Tchibo and others.

"This is essentially the bridge from the manufacturer to the customer and is ideal for giving undecided users the opportunity to try out an electric car without risk," he said. "In this way, customers can test e-mobility without a long-term commitment, and see how they get on with it and, at best, plan for the long term afterwards."

Subscription schemes are gaining in popularity, according to a November 2020 report from analyst firm McKinsey, driven in part by the growing curiosity around electric cars.

Subscription-focused startups ViveLaCar and Cluno offer their own plans and compete automakers such as Daimler (Mercedes Flexperience) or Audi's "Select" subscription service.