Volvo to Stop Car Subscription Service in Europe and US

TapTechNews September 15th news, Volvo Cars announced that it will stop its car subscription service 'Care by Volvo' in the European and American markets.

Car subscription service (Cars subscriptions) allows customers to pay a monthly fee to use a car instead of buying or leasing a car. The car subscription service offers a variety of benefits, including that subscribers can change cars frequently, the subscription company is responsible for maintenance and insurance, subscribers can terminate the subscription in a short time, and subscribers can 'test drive' different vehicles before committing to purchase, etc.

The car subscription service was once regarded as a new tuyere in the automotive industry, and its flexibility and convenience have attracted many consumers. Through the subscription service, consumers can choose different models according to the season or demand, such as choosing an SUV in winter and a convertible in summer. However, in recent years, many automakers have abandoned this model. General Motors' 'Book by Cadillac' and Mercedes-Benz's 'Mercedes-Benz Collection' have both been shut down.

TapTechNews noted that Volvo did not clearly give the reason for stopping the subscription service, but only said that this move is to 'focus on core customer services, upcoming new products, and improve operational efficiency'. The company also retains the possibility of reintroducing the subscription service in the future.

Although Volvo's subscription service 'Care by Volvo' in the US market has been profitable and welcomed by some dealers, it still cannot escape the fate of being shut down in the end. Some dealers said that the subscription service accounts for 10% of their business and is an effective way to attract new customers.