Kyte Launches Tesla Model 3 Subscriptions

Kyte, the California-based company delivering cars on-demand, announced on March 31 the launch of its new Tesla subscription product. The new fleet of premium electric cars will be available in San Francisco and New York City service areas (including Manhattan, Brooklyn, and Jersey City) starting April 15.

The service will eventually be available in all of Kyte’s current 14 markets, according to the announcement. Portland opened in March. As part of this new subscription, Tesla Model 3s will be available and will include maintenance, insurance, registration, and roadside assistance. The service provides a meaningful way for customers to get the experience of a Tesla without the hassles and commitment of ownership. Kyte will also provide the option to extend subscriptions flexibly at any time.

“Being able to expand our fleet and amplify EV adoption is mission-critical. We don’t want to only be innovators in how we give people access to cars, but we want to be a catalyst for the rapid change going on in the transportation industry as a whole,” said Erik Zahnlecker, director of product at Kyte. “This rollout is pivotal to our growth strategy and core to our electrified, autonomous, and shared vision.” 

In an email exchange with Auto Rental News, Kyte cofounder Ludwig Schoenack was bullish in general on EVs: "We're heavily leaning in and think that those that wait and see are missing out on an opportunity to make a dent in an industry that has collectively missed more than one opportunity to adapt, change, and evolve."

Schoenack confirmed that while Kyte is growing its owned fleet — a TechCrunch report stated the company plans to increase its fleet to 10,000 units by next year — the company continues to maintain relationships with professional fleet owners to supply the Kyte platform. 

The news follows the company’s announcement last week of a significant round of asset-backed credit financing from Goldman Sachs and Ares Global Management of $200 million. In October, Kyte raised $30 million in Series A funding.