Why you will subscribe to your next car

In the midst of the global lockdown caused by the coronavirus pandemic I’ve taken some time to reflect on how COVID-19 may actually be a catalyst for some major changes in the way the automotive industry “sells” cars.

There is no question about how important it is right now to be well-positioned digitally. Companies who have created solid online platforms that facilitate access to core necessities are currently winning. When it comes to the automotive space it is still very traditional, having to piece together many disjointed services such as bank loans, Insurance, roadside assistance and your car dealership, a process which hasn’t changed in over 100 years.

Traditional retailers are facing huge challenges in selling or renting cars right now as footfall in dealerships and rental offices is not possible. People are looking for digital access to individual mobility today more than ever. “Access not ownership” is the future, where we live in an era of Netflix, Spotify and JetSmarter. Current generations will not want to lock up their hard-earned money in depreciating assets like cars but rather pay for access to the car they want, when they want. Globally manufacturers, dealerships, rental car and technology companies are all working to bring new ownership models to the table for consumers so the chances are very high that you will subscribe to your next car.

We launched Carasti, a car subscription app in 2019 in response to this major trend which is now being accelerated by COVID-19. Our business processes are fully digital. Customers book online via our app, we are connected to our partners via a digital platform and internal communication takes place via email, chat and video conferences. There are cars in our fleet to suit every taste and budget and we have managed our cost base appropriately to ensure we can get our fellow UAE citizens on the road as cost-effectively as possible with no down payments, no paperwork, no long-term commitments and a fully disinfected car delivered to their doorstep within 4 hours of booking.

In this COVID-19 era, people who normally use public transport want to be in their own vehicle as quickly as possible, in order to avoid the risk of infection on public transport. They also want flexibility without needing to be committed to a vehicle and a loan for a long period of time. Car subscriptions are the perfect solution. Since the coronavirus pandemic has struck, we have seen the value of our subscription model come to life; since if you don’t drive to work and shop in the supermarket around the corner, you don’t need a car. If you have a Carasti Car you can simply stop or pause your subscription, hand the car back and schedule a delivery for when you need a car again.

In conclusion, I feel 2020 will be the year Car Subscriptions will rise and change the automotive industry forever for the following 3 reasons:

Firstly, the latest developments are reviving the trend toward private transport. Your own car as a protected space is gaining in importance again.

Secondly, as we are going through an economic crisis, mobility remains a basic need even in such a phase. The previous offers of cash purchase, classic financing or leasing mean long-term commitment. Nobody wants to take this risk in economically uncertain times. Car subscriptions are a flexible, predictable and cost-effective alternative.

Thirdly, booking a car subscription is fully digital and is therefore contactless. Advice is given by phone, chat and email. The customer does not even have to leave the house. This greatly facilitates access to individual mobility.

The process to subscribe is simple, just follow these 3 steps:

Download the Carasti app by searching for us on the Apple or Google Play store.
Select the car of your choice starting at just 1,299 AED monthly.
Add your delivery location, timeslot and pay! Your car will be delivered to your doorstep.

Author: Claudio Esposito Aiardo, Founder and CEO of Carasti