Léa Miggiano, you are the face of Carvolution. Do you like to be on the agenda?
Anyone who knows me knows that I actually prefer to sit in front of the computer and deal with numbers or concepts. But yes, that’s right, I’m the face of Carvolution and honestly it makes me very proud to represent such a great team and a unique product like the subscription car.
What makes a car subscription so unique?
A car subscription is an alternative to renting and buying a car. On the one hand, it is easy and flexible for customers, and on the other hand, it is very attractively priced. Because the total cost of a car subscription, for example, is usually much lower than if you leased the car for 3 years. If you want a car subscription, you can choose a suitable car online, with over 70 models from various brands and durations ranging from 3 to 48 months. Everything is already included in the monthly subscription price, i.e. full insurance, taxes, tires, etc. – everything except refueling or charging.
You advocate for automobile mobility: Given the criticism of private transport, can you do it with a clear conscience?
There are certain things that need to change in mobility. However, private transport is an essential part of a functioning society. That’s why I’m against discussing solutions without private transportation. This is not effective. Instead of having black and white discussions, we start at Carvolution by giving people the opportunity to drive a car that fits their current needs. Without having to take any financial risks.
Former AMAG boss Morten Hannesbo is a new member of Carvolution’s board of directors. It justifies its entry with changes in mobility that have become more sustainable and flexible. How sustainable is the Carvolution car subscription?
The concept itself promotes sustainable behavior with customers among customers. For example, because the mileage package can be adjusted monthly with us, people also drive less because they pay less. In addition, since we have flexible subscriptions and therefore there are no financial risks, the threshold for switching from us to an electric car is much lower than when buying an electric car.
To what extent does Carvolution contribute to changing mobility?
We do not change mobility; we have launched a subscription vehicle concept that meets today’s requirements. The mobility needs of society have changed. You no longer need to be the owner of the car. We haven’t driven the same car for 20 years anymore. The majority no longer see the car as a status symbol and prefer it if it can be used easily, flexibly and especially at low total cost.
How popular are electric cars in Carvolution?
Electric cars are a very important part of our offer. We often hear from our customers that, thanks to the subscription, they have put an end to their worries about electric cars and will never switch to the internal combustion engine again. If a decision had to be made today as to whether to offer only electric cars or only internal combustion engines, it would not take a second to make that decision.
Do you travel electric too?
I wish I was I am waiting for the possibility of a parking lot with charging facilities or existing charging facilities in my house. Therefore, no, I am currently using an internal combustion engine.
Do you travel a lot with him?
About 12,000 kilometers per year by car. Although I don’t use all the routes myself, because I always lend my car to someone (laughs). I use a combination of bus, tram, train, e-scooter and car to be mobile.
Which car are you using?
I’ve been using Ford Focus for over three years and have no complaints. However, if I had to choose another car it would be either the Fiat 500e or the Audi e-tron S, but only for a few months, because an SUV is actually too big for me.
These are three of the over 70 vehicle models in your assortment. Let’s stick to the numbers: Carvolution has over 100 employees. The company is located in Bannwil BE, where approximately 700 people live. What numbers can you tell us?
I don’t really like to talk about numbers, but an exciting number I just mentioned was this: 9 out of 10 customers actively recommend Carvolution. At this point: Thank you very much!
What is Carvolution most praised for?
For our front team. Our consultants and the entire customer service team get lots of compliments. I think our clients think the concept is great and are surprised how much they enjoy getting advice and support from us. We believe in what we do as a company, and I think people feel that.
What are the most common subscription questions?
There are two questions: Why are you so expensive? Why are you so cheap? The first one takes a little longer to answer because we start the calculations and ask interested parties to get quotes so we can compare. The second question is easy to answer: Our purchasing volumes, lean, digital processes and efficient packaging of vehicle components all have a positive impact on price. Our customers benefit from this.
For a long time Carvolution was the only provider of subscription cars. There are several players in the market now. How many problems do you have with your competitors?
We look forward to every new market participant. It confirms that car subscription is not a trend, but an integral part of how we access cars.
Carvolution won the Swiss Economy Prize in the summer of 2022. You were named Young Entrepreneur of the Year in 2021, listed in Forbes’ Top 100 Women in Business and 30 Under 30 list. What do these awards mean to you?
(laughs) Thanks for the flowers. Of course, such awards make me happy, but it does not give me the energy and motivation to be able to work with the team on a great business model. Yet such rewards are important. Especially as a young founder with a case in the established automotive industry, you need to prove yourself, and the awards help.
Carvolution completed a new funding round and received CHF 16 million. How successful are you in the 4th year after starting?
We have a really solid business model and, above all, extremely loyal customers. Given the current economic situation, it is not a natural matter to receive such sums and be able to rely on the trust of investors. This would not have been possible if our practice in recent years had not been convincing and our structure had not been as it is today.
A look at the end of the year: Are you satisfied with 2022?
Almost done doesn’t mean it’s over. Our Christmas campaign continues. I wonder how this has developed and whether we have enough tools. But looking back, 2022 was a great year, there were a few delivery issues that were pushing us, but we’ve accomplished a lot and most importantly, we’re really looking forward to the coming months.
What have you planned for the new year?
(laughs) A lot. But to mention a few specific things: We will continue to simplify subscription management in the app. There will be a new campaign and we ordered some really cool cars. It is also important for me to have a good grasp of the overall cost issue and to provide more transparency. I get partly annoyed when people decide against us because they liken the subscription to a direct rental payment, and then I get angry at myself for not being able to explain it better. There is also a best price guarantee.