Porsche Expands it Vehicle Subscription Plan in the U.S. and Canada
【Summary】As a result of the success of the pilot in Atlanta, Porsche announced today that it is expanding is subscription service as well as its more expensive “Porsche Drive” premium car rental service to four new cities in the U.S. and Canada beginning September 2019.
As personal vehicle ownership is expected to decline with the increase of on-demand ride-hailing and other mobility services, automakers are betting on subscription models to lure in new customers to generate revenue.
Swedish automaker Volvo was one of the first to offer a subscription model, announcing its "Care by Volvo" subscription option last year. German automaker Porsche followed Volvo's lead and began testing its own subscription model called "Porsche Passport" in the Atlanta metro-area, which turned out to be a popular option for customers.
As a result of the success of the pilot in Atlanta, Porsche announced today that it is expanding is subscription service as well as its more expensive "Porsche Drive" premium car rental service to four new cities in the U.S. and Canada beginning September 2019. The new locations are Las Vegas, Phoenix, San Diego and Toronto.
The automaker announced that 80% of Porsche Passport customers in Atlanta were new to the brand.
The pilot project in Atlanta, which has been run by Porsche Cars North America (PCNA) since the end of 2017, will be taken over by the two dealers in Atlanta going forward.
With its subscription offering, Porsche is catering to customers seeking more flexibility, more individual choice, including the convenience of being able to select a vehicle on their mobile device whenever they choose.
"We want these consumers to have the same superb level of Porsche experience that we provide for our customers who buy or lease," said Klaus Zellmer, President and CEO of PCNA.
With "Porsche Passport", customers are not relegated to just one model. Drivers can change their vehicle as needed using the smartphone app, with up to 20 Porsche models to choose from including the Porsche 718 Boxster and Cayenne and Macan SUVs.
Porsche Passport only requires a 30-day commitment. Membership renews automatically monthly after the first period. Customers that want to cancel can contact Porsche to end their subscription after the current month has expired.
The subscription model is being managed by Atlanta-based Clutch Technologies LLC, the company already involved in the pilot project and will continue to manage the technology side of the platform for Porsche. Clutch, founded in 2013, provides software and services to manage the subscription-based services for automotive customers.
Porsche said that Clutch will be taking over the role of digital concierge.
The "Porsche Drive" premium on-demand vehicle rental service offers customers the opportunity to rent Porsche vehicles from all six model series, including the top of the line 911 Carrerra S and Panamera 4S – for just a few hours, by the day or for an entire week.
Porsche Drive customers also can use a concierge service for delivery and return of the car, making switching out a vehicle more convenient.
In addition to "Passport" and "Drive", Porsche has launched the pilot for "Porsche Host" in the U.S. together with car-sharing platform provider Turo.
The Porsche Host pilot program includes some of Turo's top hosts specifically selected for their knowledge and passion as Porsche owners. Driver's who book a Porsche on Turo's car-sharing platform using a Porsche Host get enhanced service and a chance to drive some of the most renowned sports cars on the market.
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
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