As a start, the new service will only be offered in specific markets in the U.S, namely in Austin, Texas and Atlanta, Georgia and offered through two different price plans. For $999 per month, customers will be able to subscribe to full-size sedans, small SUVs and trucks. Bump that up to $1,399 a month and you’ll get access to Luxury sedans, regular SUVs and larger trucks. Important to note is that these prices are before taxes and also come alongside a $250 enrolment fee, and a monthly 2,000-mile allotment, where every extra mile after that will cost you $0.35 per mile.
This playing field in the transportation sector is getting more and more crowded, and alongside Hertz there are similar services found from Porsche, Mecedes-Benz, BMW, Audi, Jaguar, Volvo, Cadillac and Enterprise (a direct competitor to Hertz who recently launched a $1,499 a month subscription plan ).
It seems more and more actors realize the need for new business models in the rapidly changing transportation sector. Question is, are these subscription offers really viable alternatives for vast amounts of transportation consumers, or a novelty only suited for a few?
Based on the price of these services, I have a hard time imagining the everyday joe affording it compared to what kind of other transportation solutions money can buy. An interesting example of this is WHIM’s unlimited Mobility-as-a-Service package, which aims to be reflective of the cost of actually owning a car and grants you unlimited travel through a variety of different mobility options at a cost of around $550 a month .
Written by Darijan Jelica, RISE Viktoria.
1. 2019-06-04. Hertz launches $1,000-per-month car subscription service.
3. 2019. WHIM – Find your plan.