Car subscription services: Automakers' shift towards servitized and sustainable business models

• Published in: Sustainable production and consumption Vol. 36; pp. 184 - 193
• Main Authors: Smania, Guilherme Sales, Arakaki, Igor Rubens Yukio, Oliveira, Allan Freitas, Cauchick-Miguel, Paulo A., Mendes, Glauco Henrique de Sousa
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.03.2023
• Subjects: Automotive industry; Business model; Car subscription services; Mobility solutions; Servitization; Sustainability; Business model; Mobility solutions; Servitization; Sustainability; Automotive industry; Car subscription services
• ISSN: 2352-5509; 2352-5509
• DOI: 10.1016/j.spc.2022.12.024

Servitized and sustainable business models are growing in the automotive industry, where car manufacturers are shifting towards providing new mobility solutions. Car subscription business models are among these new solutions. However, they are scarcely explored in servitization and sustainability studies regarding their implementations and sustainable benefits. Thus, this article aims to investigate the process of implementing car subscription business models from the automaker's perspective. Case-based research was carried out in a Brazilian subsidiary of a multinational automaker. Our findings highlight implementation practices and prospects for expanding the car subscription offerings. We also identify the internal and external challenges faced by the automaker to implement the car subscription business model. Lastly, we explore its sustainable benefits, such as the expanded revenue and customer base, the improved use of resources, and the customer's well-being. Negative externalities generated by the car subscription business model are also discussed. This study contributes to the theory by shedding light on implementing car subscription business models and their sustainable outcomes. The article also contributes by assisting managers in implementing car subscription business models.