Car Subscription Service Tested in Minnesota

Car Subscription

If you’ve ever imagined driving a particular car without the commitment, this new service is for you. The biggest car rental company in the U.S., Enterprise Holdings, is beginning a new vehicle subscription service in Minnesota, Missouri, and Nevada.

What it is

Enterprise claims to own the largest selection of privately-owned vehicles in the world. Its new service, “Subscribe with Enterprise,” will use those vehicles and its network of neighborhood Enterprise Rent-A-Car agencies to allow people access to a variety of sedans, trucks, and SUVs. Furthermore, they will also be able to switch vehicles up to four times a month.

Companies across industries are adopting subscription type services as a customer-centric approach to supply. This is everything from music, movies, bicycles, scooters, and software. However, other services charge customers automatically each month through their accounts.

Some luxury car brands, such as Cadillac and Porsche, already offer subscription services.

How it works

Enterprise claims its’ new service as an alternative to car leasing or car ownership. Subscribers pay for gas, tolls, tickets and individual taxes on top of the enrollment fee and monthly subscription fee. The monthly fee covers a range of typical automotive services including insurance, maintenance, and roadside assistance. Additionally, the plan includes up to 3,000 miles per month – more miles than a standard lease arrangement.

An Enterprise spokeswoman said that test states where chosen based on internal data that gives the company confidence that results will let them determine if the program could win nationally. However, they’re allowing sufficient time to study vehicle-subscription services and consumer preferences for this type of program. When it eventually launches throughout the U.S., the service is explicitly designed to meet evolving consumer needs.

Enterprise expresses the new subscription service as an extension of its existing “mobility-as-a-service” offerings. This includes car rental, truck rental, commuting services, carpooling services, fleet management, and hourly car-sharing services.

Major Minnesota cities participating in the Subscribe with Enterprise program include Minneapolis/St. Paul, Rochester, and Duluth. Prices would consist of a $250 enrollment fee as well as a $1,499 monthly fee.

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