33% of European consumers are considering a car subscription as an alternative to ownership in the future, according to a 2023 study from McKinsey & Company, circulated by :Dribe, a Danish car subscription service in a Sept. 11 news release.

:Dribe also cited a 2024 study from Deloitte that shows 31% of European consumers are open to the idea of car subscriptions instead of vehicle ownership, while 38% appreciate the flexibility of car subscriptions. Overall, survey respondents indicated they seek shorter commitments and fewer concerns about vehicle maintenance and depreciation. Many also value the simplicity of a fixed monthly price that covers all expenses.

David Bailey, professor in business economics at Birmingham Business School and a leading international expert on the automotive industry, highlights the growing importance of car subscription services for consumers.

“Car subscription services have taken off in Europe, especially with younger drivers,” Bailey said in the news release. “They give drivers more flexibility and choice. The cost of full ownership can be prohibitive for younger buyers in big European cities, especially once insurance is factored in.

Car subscription, which offers the use of a personal car without all the hassle of full ownership, is part of the growing mobility-as-a-service movement, Bailey added.

European Automotive Industry Sees Potential in Car Subscriptions

Jesper Hill-Kjærsgaard, CEO of :Dribe, noted that several big players in the European automotive industry are interested in their business model.

“We're seeing an increasing number of dealerships exploring new revenue streams to accommodate the change in technology and consumer behavior,” Hill-Kjærsgaard said.  “Many see subscription models as a catalyst for both growth and retention.”

The industry recognizes the opportunities presented by a plug-and-play solution that enables a subscription service without significant investments, he said. Automated processes and streamlined digital management reduce the need for manual labor.

Bailey sees this as a natural response to market demand. “I’m not surprised car subscription services like :Dribe are getting lots of interest in franchise type set ups. There is a gap in the market for fleet managers to use this type of service.”

Car Dealers Look to Expand EV-Options

Growing interest in car subscriptions among dealerships is linked to the new options they offer for electric vehicles, Bailey said. “Car subscription services offer a low-risk way for consumers to sample EVs for the first time. This will be key in encouraging wider EV uptake.”

Additionally, the higher upfront cost of electric vehicles, driven by expensive batteries and cutting-edge technology, can pose a financial challenge for many consumers.

“Coupled with the uncertainty around future resale values, subscription models provide a flexible way to embrace the future of mobility without making a heavy financial commitment,” Hill-Kjærsgaard said.