A new car on subscription, you will come across it more and more in the coming years. The business model of the car industry is gradually changing. Volvo already started it last year, we wrote about it earlier. And now Link & Co is coming to the Dutch market. Like Volvo, it has Geely as its parent company. However, the cars of Link & Co look completely different. The concept behind it also differs, but the idea remains the same: from ownership to access.
Purchase or subscription?
You can also buy the hybrid Link & Co 01 if you like, for €39,000 (incl. VAT). Link & Co’s initial expectation was that about 30% of customers would opt for this and the remaining 70% for the subscription, says Telma Negreiros (head of communications) in Trouw. The figures show otherwise: only 10% want a buy car and 90% choose the subscription and flexibility. The minimum term for a subscription is only one month.
What does it cost?
The subscription costs €500 (incl. VAT) per month. For this you may drive up to 1250 km a month, if you make more meters you pay €0.15 per extra kilometer. But if you do not use all 1250 km per month, the kilometers not driven will be transferred to the next month. You have to pay for the fuel (petrol, electricity) yourself, and the same goes for fines.
Sharing reduces costs
You can also share the car. The more other members use it, the lower the monthly fee. A free membership is also possible. Although you do not get a Lynk & Co 01 in front of your door, you do have access to the sharing platform and you only pay for the (temporary) use of the vehicle. However, Link & Co has not yet announced the rates for this.
According to Negreiros, the target group is “people who are young at heart. People who are ready for development and change”. We see the same thing with many users of subscriptions to other services such as Spotify, Swapfiets and Gerrard Street. Usually they are in the age group of 18 to 40, while older people are still attached to ownership. But gradually this is changing.
Doing is learning
In the coming years we expect more car manufacturers and newcomers to launch such mobility concepts on the market and also expand them with more services, think of combinations with other means of transport such as micro mobility (E-steps and bicycles, public transport). Parties like Link & Co dare to do things and learn quickly. To be continued…
Auke van Stralen
Auke has been developing services for long-term subscriptions and contracts for over 25 years. He has done so in various management positions for listed companies in telecom, energy and waste. He continually strives to add value, so that both clients and companies benefit.