The market share of car subscriptions continues to grow: Is Carvolution now revolutionizing the auto industry?

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Carvolution is one of the most promising start-ups in Switzerland. The business idea is as simple as it is revolutionary: use the car by subscription instead of renting or buying it. So what’s behind this idea? Why is this business model praised by experts as particularly promising? Why is the subscription tool becoming more and more popular with drivers? A look at the goals of the subscription model and how it works.

The concept of a vehicle subscription is simple and reasonable: Since the purchase of a car is often time-consuming, complex and also associated with high and unmanageable costs, Carvolution has aimed to make the customer experience with the vehicle simpler, better. Flexible and cheaper to design.

To ensure this demand is met, Carvolution also bundles full coverage insurance, motor vehicle taxes, tires including replacement and storage, as well as service and maintenance with the vehicle. This leads to an all-inclusive monthly flat price. This is exactly why the prices seem high at first glance. To show that the first impression of subscription prices is misleading, Carvolution offers the best price guarantee compared to the total rental cost. As a result, car subscription customers are guaranteed never to pay too much.

Carvolution relies on quantity structure for orders, digitized fleet management and processing, as well as without capital-intensive locations and showrooms, to keep overall costs low compared to leasing or purchasing. As a result, customers benefit from lower overall costs for their vehicles. In addition, the subscription terms can be flexibly adapted to your needs between 3 and 48 months.

Benefits of vehicle subscription for customers:

• You can get a new or like-new car for a low fixed monthly price.
• The subscription includes everything but fuel or charging current so you don’t have to worry about insurance, taxes, new tires or service costs.
• You can choose the contract period between several months or several years.
• You can choose from nearly 50 models of many brands. From the small city car to the premium SUV.

• With the best price guarantee compared to the total rental cost, subscription customers never pay too much.

The successful implementation of the vehicle subscription concept depends on the right vehicle selection and company structure. Managing the fleet extremely efficiently and providing excellent customer service is essential. Five years after its founding, Carvolution has achieved this and has reached a position in the automotive industry that makes it possible to supply the right cars in the right quantities. In addition, the Bern-based start-up has adjusted all its processes to the needs of its customers from the very beginning. The most important functions can be managed in just a few clicks via the Carvolution app. Tire change or service visits are easy and uncomplicated for vehicle subscription customers, thanks to its extensive, national partner network.

Olivier Kofler, co-founder and CEO of Carvolution, says: “Competitive offerings and a wide selection of cars are important. But more importantly, it’s a well-established team that works in the background. Our auto experts, digital professionals and customers know that we’re not done when they hit the road with their new cars. We have a team that knows.” The Carvolution service is all about making the car experience as easy as possible for the customer.

This is successful, as a customer survey shows: 85.5 percent of customers surveyed say they “don’t have to worry about the car” thanks to the subscription.

Carvolution started in 2018 as an anonymous company in the auto industry. Initially, several hundred cars were purchased and there were only a few models to choose from. Carvolution currently manages one of Switzerland’s largest car fleets. The headquarters of the nearly 100-strong team is located in the Bannwil countryside of Oberaargau. Behind Carvolution are four strong founding teams: Bernhard Drüner, Léa Miggiano, Luis Wittwer and Olivier Kofler. The team not only convinced well-known investors, but was also praised by Swiss economic experts. Léa Miggiano, co-founder of the automobile subscription start-up, was named Young Entrepreneur of the Year 2021 and Carvolution was awarded the Swiss Young Entrepreneur Award in the Service category by the Swiss Economic Forum (SEF) in 2022. But Carvolution is not only popular with business professionals, but the young company has been one of the most promising start-ups in Switzerland every year since its founding in 2018.

Carvolution has also made a strong impression with its strong growth figures in recent months. When asked if the market share of car subscriptions will increase to 40 percent by 2030, Kofler said: “Car subscription will reach this market share. Exactly how quickly and when this will happen is impossible to answer at this time. We are definitely preparing for this and look forward to welcoming new customers every day.”

Model and technology options are constantly being expanded in Carvolution. Subscription tools are modern and well-equipped. Driver assistance systems provide safety and comfort. But there are no expensive extras. This results in a high residual value enabling low prices.

That’s why the path to your own car is very simple: choose the car you want from Carvolution, configure the term and mileage package, get a non-binding offer. If the offer suits you, sign a digital subscription contract and be on your way soon. We have a large number of vehicles in stock. The Opel Corsa 1.2 Turbo Edition is currently available starting at CHF 389 per month for a fixed two-year period.

Source: Blick