How Subscription Models Boost Mobility as a Service

Urban mobility is undergoing profound transformation. Consumers, seeking transportation solutions best suited to their lifestyles, are increasingly turning away from ownership.

Whether it's cars, bikes, or scooters, today's consumers primarily seek easy access to transportation without worrying about the hassles of ownership:

• Regular and costly maintenance
• Unexpected repairs
• Risk of breakdowns
• Theft concerns

In recent years, subscription services for cars, bikes, and scooters have emerged in dense urban areas, providing alternatives to public transportation.

The global pandemic has dramatically accelerated this trend. City dwellers are looking for safer means of transport to maintain social distancing.

The first step was shifting to bikes, e-bikes, or electric scooters—a trend observed worldwide that continues to grow.

Mobility as a Service Driven by Subscription Models

New mobility solutions, new business models.

These new urban mobility services all rely on subscription models.

This is a model that prioritizes using transportation without the usual constraints of ownership.

Key advantages for users:

• Elimination of unexpected breakdowns
• Protection against damage
• Coverage for theft
• Removal of purchase barriers
• Guarantee of smooth transportation

Subscription offerings also enable companies providing these new mobility types to democratize access to a product—which becomes a service—and offer it to a broader customer segment.

For example, electric cars have high purchase costs and numerous barriers:

• Technical sophistication making repairs potentially expensive
• Specialized and costly maintenance
• Limited charging infrastructure
• Uncertainties about battery lifespan

Offering such vehicles through subscriptions removes these access barriers and allows consumers to benefit from this type of transport without constraints.

Furthermore, subscription or rental models put customer experience at the heart of their model.

Urban Mobility: A Flourishing Market

Bikes, e-bikes, scooters, cars, electric cars... New offerings have been blossoming in the market for several years.

European Success Stories

Swapfiets, for example, offers residents of major European cities monthly bike rentals without commitment, with full repair coverage and theft insurance.

Starting at €16.90 per month, subscribers can access an all-in-one mobility service. In case of breakdown, the bike is repaired within 48 hours.

Other startups have successfully replicated this model:

• Buzzbike: bikes for £32/month in London
• Step: e-scooters for €39/month in Belgium
• Dance (SoundCloud founders): e-bike for €59/month in Berlin
• Ebike-to-go: e-bike rental from €89/month in the Netherlands

French Market in Full Development

In France, Decathlon Rent offers customers a choice of 5 bike models, including 2 electric ones, at attractive rates between €15 and €75 per month.

The service includes:

• Lock included
• "Theft and damage" insurance
• Regular maintenance
• Option to keep your bike longer
• Storage in apartment courtyards or private spaces

Unlike traditional bike-sharing rental services, Decathlon Rent offers genuine temporary ownership of the vehicle.

Electric Mobility Innovation

Zeway offers electric scooter rentals with revolutionary swappable batteries.

For €130 per month, customers can access an electric scooter with unlimited mileage without worrying about charging.

The new offering is also marketed through a strategic partnership with Fnac-Darty, multiplying customer touchpoints.

Reimagined Customer Relationships

Thus, subscription models emphasize concrete customer benefits. Customers can then access modern, clean transportation at lower cost.

For example, owning a car in a major city today presents more constraints than advantages:

• Difficulty finding parking
• High parking costs
• Mandatory regular maintenance
• Risk of damage and vandalism
• Imbalance between actual use and fixed costs

Consumer Benefits

Accessing a mobility service allows consumers to no longer suffer these constraints and focus on using their transportation.

They can consume only what they need, nothing more, nothing less. They benefit from a turnkey service without worrying about ownership constraints:

• Insurance included
• Repairs covered
• Theft protection
• Damage management
• Preventive maintenance

Business Opportunities

For companies offering mobility as a service through subscription or rental models, it's also an opportunity to generate regular and predictable revenue.

This model has the advantage of completely transforming the customer relationship: instead of making a one-time sale, the company is connected to its customer for several months or even years.

Benefits of this circular approach:

• Optimization of vehicle utilization rates
• Reduction of resource waste
• Extension of product lifespan
• Development of refurbishment and second-hand services
• Creation of a more sustainable economy

Are you planning to experiment with subscription models? To get started with expert support, contact us.

() The Shared and Multimodal Mobility Observatory (study conducted by IFOP for Sixt)*