Car subscription services are gaining attention as a potential driver of greener mobility in the UK, with academics from Birmingham Business School suggesting they could accelerate electric vehicle adoption.
Recent data shows that electric vehicle (EV) sales in the UK have been steadily increasing, with year-to-date sales having seen a 14% increase, according to the European Automobile Manufacturers Association. In October last year, 29,802 new EVs were registered, marking a 25% rise from the previous year.
David Bailey, a professor of Business Economics at Birmingham Business School, suggests that car subscription models could help accelerate the adoption of electric cars in the UK.
“Car subscription models are a great way for consumers to 'dip their toes' into the EV market. Drivers are sometimes hesitant about adopting this new technology due to high upfront costs and fears about range and charging and uncertainty regarding resale value," said Bailey.
He noted that such models offer a way for consumers to explore EVs without committing long-term. "A car subscription model allows consumers to see if EVs fit their lifestyles and whether they are cost-effective for them."
"When the customer has the flexibility to choose, we see a greater variety in the car models that are picked. When longer drives or infrastructural uncertainty occurs, we often see people switching back to conventional fossil-fuel cars," said Jesper Hill-Kjærsgaard, CEO of :Dribe.
However, Hill-Kjærsgaard observed that once people become accustomed to the benefits of electric vehicles, they often continue using the technology.
Peter Wells, a professor of Business and Sustainability and director of the Center for Automotive Industry Research, sees car subscriptions as a way to optimise resource use in the transportation sector.
Wells explained that car subscriptions allow consumers to select cars based on their immediate needs, rather than over-consuming resources by purchasing large, all-in-one vehicles.
"Car subscriptions hold untapped potential for advancing green mobility by instead allowing consumers to change cars as needed, meaning new cars don’t have to be oversized all-in-one solutions," said Wells.
Despite the potential benefits, Wells acknowledged the challenge of shifting the automotive industry from traditional models.
:Dribe, which leverages the legacy and experience of the Semler Group, aims to integrate digital solutions to ease this transition.
Do you think car subscriptions could be the key to increasing the adoption of electric vehicles? Share your thoughts in the comments.
