Here’s Why Automaker Subscription Features Are Here To Stay, Even Though You Hate Them

TL;DR

This type of behavior is becoming more frequent in the auto industry, proving that pushing consumers towards services that earn automakers recurring revenue is, unfortunately, the future.The writing has been on the walls of executive offices for years, and companies are pivoting to offering software to enable automakers to sell vehicles with features more akin to the subscription-as-a-service design.We’re not just talking about the auto industry here—in general, a subscription is a way to achieve annual recurring revenue, something that helps to predict the health of a company outside of just the amount of products it sells in a year.With the rapid transition to electrification, many new automakers have begun to pop up, and these companies have specifically avoided the idea of utilizing distributed dealership franchises to handle the after-sales experience.But a dealer could stock just one vehicle that can activate [the feature].” That streamlining could potentially save the dealership operational expenses down the road."

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