Autonomy, an EV subscription company, has announced a strategic pivot from vehicle subscriptions to launch a new SaaS venture, Autonomy Data Services (ADS), in collaboration with Deloitte. The new venture has successfully raised $2.5 million in funding and executed a $32 million debt-for-equity swap, alongside acquiring all related technology and intellectual property.
Amid significant changes in the automotive industry, particularly regarding residual values and their effects on both consumers and fleet operators, Autonomy is navigating these challenges and emerging with a renewed focus on technology and subscription services.
The subscription model has demonstrated its effectiveness with robust technology, strong vehicle performance, low delinquency rates, and high consumer demand. Lower prices, a simplified process, and high utilisation rates affirm the model’s success.
Scott Painter, founder of ADS said, “With Deloitte as our partner, ADS is set to expand its market reach by leveraging Deloitte’s extensive network and expertise. This partnership positions ADS at the forefront of the evolving vehicle subscription market, enabling the provision of innovative solutions without the burden of debt or residual risk.”
ADS will adopt a SaaS model with no associated debt or residual risk. Its licensing and SaaS revenue model will cater to OEMs, captive finance companies, fleet operators, rental car companies, and car dealerships seeking to implement subscription services. This model is already operational and generating revenue with existing clients.
In its strategic transition, ADS has acquired key assets from Shift, Canvas, UberXChange Leasing, and Fair, with the acquisition valued between $10 to $12 million. These assets include brand names, domain IP, compliance documentation, legal work for 50-state operating licensing, technology codebase, customer apps, integration mapping, system algorithms, and extensive data assets.
“The shift to a SaaS model allows ADS to leverage its technology and data to offer comprehensive subscription solutions to OEMs,” said George Bauer, Executive Chairman of ADS, adding “Here at ADS, we are now a bigger believer in the subscription model more than ever.”
The automotive sector is evolving rapidly with the rise of electric vehicles (EVs) and sustainable transportation solutions. The vehicle subscription market is expected to reach USD 4.52 billion in 2024, with a projected compound annual growth rate (CAGR) of 34.2%, reaching USD 35.49 billion by 2031. Consumers increasingly prefer flexible, all-inclusive plans over traditional vehicle ownership.
A 2024 Deloitte consumer study highlights that 45% of US consumers are reconsidering vehicle ownership, with 28% of 18-34-year-olds favoring subscription services (29% in Germany). This trend aligns with ADS’s goal to spearhead innovation in subscription services and digital mobility solutions.