They’ll be competing with automakers, most of them luxury brands, that already offer their own subscriptions
Business model will build partnerships rather than compete with dealers
Two Detroit startups are taking the traditional car ownership model and flipping it on its hood.
Startups Condor Mobility LLC, operating as Condor Detroit, and Mobiliti LLC are launching vehicle subscription programs that promise a speedier, more flexible experience for their members, who pay a flat monthly fee — insurance and maintenance included — to drive a new or used car whenever they want, for as long as they want.
It’s not a new idea. Seven automakers, mostly luxury brands, have launched their own vehicle subscription programs, which have cropped up in most major cities and favor function over formality.
But Condor and Mobiliti plan to use the auto dealer network to their advantage to take on their automaker rivals in the still-unproven market.
Condor launched its vehicle subscription service in Southeast Michigan in December, while Mobiliti will launch its services in Austin, Texas, on May 1.
Both startups target younger drivers looking to sidestep the traditional buying or leasing process and offer bundled payment options to customers looking for a more tailored, hassle-free process.