In the ever-evolving world of transportation, a new option has emerged that challenges the traditional norms of car ownership. It’s called car subscription, and it’s quickly gaining traction in the UK. This innovative model allows individuals to subscribe to a car for a flexible period, providing a convenient and hassle-free alternative to owning or leasing a vehicle.
What sets car subscription apart is the comprehensive package it offers. In addition to the vehicle itself, subscriptions often include additional services such as insurance, maintenance, and roadside assistance. This means subscribers can enjoy a hassle-free experience without the need for significant upfront or down payments. It also eliminates the long-term financial commitments and risks associated with vehicle resale value, providing peace of mind and financial flexibility.
One of the notable advantages of car subscription is the variety of vehicle models and options available. Unlike traditional leasing, car subscriptions offer a wider range of choices, allowing subscribers to experience different cars without the burden of ownership. Prices can vary depending on the chosen vehicle, ranging from £200 to £3,500 per month.
As the demand for car subscriptions continues to grow, the global market is projected to reach a staggering $35.8 billion by the end of 2029. While the industry experienced a setback with the exit of subscription giant Cazoo, leading to the closure of sites and job cuts in the UK, other established subscription providers are seizing the opportunity to expand their offerings.
In light of this thriving market, numerous startups in the UK are now offering car subscription services. These startups provide individuals with the opportunity to rent cars on a subscription basis, opening doors to a world of convenience, flexibility, and financial freedom. The car subscription revolution is here, and it’s transforming the way people think about mobility in the UK. Having said that, here is a list of startups in the UK offering car subscription services.
Wagonex
Founder: Toby Kernon
Founded: 2016
Total funding: Not available
Offering an appealing alternative to car ownership, Wagonex has emerged as a leading car subscription platform in the UK. This innovative service allows individuals to subscribe to a vehicle on a monthly basis, granting them access to a diverse range of makes and models. The subscription fee typically covers insurance, maintenance, and breakdown assistance, simplifying the overall car ownership experience. With a recent expansion of its relationship management team, Wagonex is gearing up for further growth. A strategic investment from Admiral in 2022 has bolstered its vision to become a prominent player in the sector.
Flexed
Parent company: Autohorn Fleet Services Group
Founded: 2013
Total funding: Not available
Flexed lives up to its name by specializing in flexible car leasing solutions. Offering short-term leasing options starting from 28 days, Flexed caters to customers’ varying needs. The company provides an extensive selection of vehicles, including models from popular manufacturers like Audi and Skoda. Alongside flexible lease terms, their packages often include additional benefits such as maintenance, roadside assistance, and vehicle warranty, ensuring a comprehensive and hassle-free leasing experience.
Onto
Founders: Dannan O’Meachair, Rob Jolly
Founded: 2018
Total funding: $151 million
Onto has established itself as a prominent car subscription service in the UK, with a specific focus on electric vehicles. Formerly known as Evezy, Onto offers all-inclusive subscriptions for electric cars, allowing individuals to enjoy the flexibility and convenience of driving an EV without the associated burdens of ownership. Subscribers have a wide range of electric car models to choose from, including renowned brands such as Tesla, Nissan, and BMW. The subscription package encompasses insurance, maintenance, and breakdown cover, and offers 750 monthly miles. Users can stop, continue or swap car models, etc.
With a recent £100 million credit facility secured from CDPQ and Pollen Street, Onto is well-positioned for continued growth and expansion.
Mycardirect
CEO: Duncan Chumley
Founded: 2020
Total funding: Not available
As an emerging online car retailer and subscription service in the UK, Mycardirect offers customers a digital platform to browse, select, and purchase or subscribe to a wide range of vehicles. This comprehensive service caters to both traditional car sales and car subscriptions, providing customers with flexibility in accessing and owning a vehicle.
Whether customers prefer to purchase a car outright or opt for a monthly subscription, Mycardirect ensures a convenient and hassle-free experience by including insurance, maintenance, and roadside assistance. Their user-friendly online platform facilitates easy exploration of various models, detailed vehicle information, and even facilitates home delivery or collection from their locations.
Editorial update: This article has been updated as per the latest information.
