Apr 15, 2021 (Baystreet.ca via COMTEX) -- EV sales jumped 43% in 2020 while overall car sales decreased by 20%, and there’s still plenty of room to run on the electric playing field, according to some of the biggest wealth managers, but there’s a potential big industry disruptor here …
One of the next big shake-ups in the auto industry - and one that will help, not hinder the adoption of EVs - is the burgeoning car subscription business.
The car subscription market is set to top $12 billion by 2027, and many of the big car makers are making moves on it, from Porsche to Volvo … and even to Hertz itself, since there is a big opportunity here.
But Washington, D.C.-based Steer combines two big trends: subscriptions and EVs, making it one to watch in this sector.
Acquired by Canadian Facedrive in Q3 2020, Steer - like Facedrive itself - is all about getting out in front of the newest trends, first…
And turning carbon-offset offerings into profitable tech-driven verticals.
Facedrive’s Steer (tsx.v:FD)(otcmkts:FDVRF) knows a lot about millennials. They are millennials. And many millennials just don’t like to buy and own. They are far too dynamic for that.
They like to rent and move on to the next best thing. They aren’t auto loyalists looking to get tied down with a major loan or lease commitment.
Leases were already becoming a favorite for many millennials as far back as 2016 when 34% of them chose leases over financing.
We think what millennials will like even more is the flexibility of a subscription, and the hassle-free way to own their favorite vehicles - electric.
That’s where Steer comes in to fill one of the gaps in this emerging trend…
Your Own EV Garage At the Touch of a Button
Steer is a new all-inclusive, monthly, low-risk car subscription service that features 100% electric, plug-in, and hybrid vehicles.
And the company was created with an overriding ambition: To take the EV industry one step further by helping to change the way people view car ownership, forever…
Let’s not mince words, here: The car ownership experience is woefully lacking. From the annoyance of haggling with that special breed of car dealers… to the hassle of shopping for, paying for, and attempting to understand the nuances of insurance… to myriad financing options, all of which tie to you a car you don’t want to be committed to for so long…
There was minimal flexibility in this market until the advent of subscriptions.
And there were very few carbon-offset subscription options for that rapidly growing lineup of new EVs… until Steer.
Steer is one of the answers to the last remaining hurdle of full-on adoption of EVs: cost and charging technology.
A subscription to Steer comes with your own concierge who delivers your car wherever you need it and assists with charging, either at home or on the road.
Unlike leasing a car, there’s no mileage limit.
With Steer, members get their own virtual gallery to fit various budgets, including everything from the Audi e-Tron and the Hyundai Kona to your favorite Tesla, and beyond.
And the growth runways are excellent when you consider that 70% of Steer members have never even driven an EV before. That means that these are new converts.
Facedrive, Steer and Giant Exelon: The Next Phase of Change
Facedrive (tsx.v:FD)(otcmkts:FDVRF)acquired Steer from Exelon /zigman2/quotes/205982254/composite EXC +0.45% in a deal that included a $2-million strategic investment by energy giant Exelon’s wholly-owned subsidiary, Exelorate Enterprises, LLC.
Together, they could pose a positive challenge to an auto industry that’s already trying to adapt to the changing EV industry.
And the leaders are emerging as those who can do two things: tie their business into the “ESG megatrend”, where big money is starting to flow; and understand what today’s market wants: on-demand service and dynamic options.
Steer’s seamless, hassle-free technology and its lineup of hot EVs do both.
It’s what some are calling a Netflix style of new car use.