Subscription Commerce

Mercedes-Benz Unveils Luxury Car Subscriptions

Mercedes-Benz

In an effort to reach drivers who want the convenience and variety of a subscription, Mercedes-Benz is rolling out a pilot service called the Mercedes-Benz Collection. Drivers will be able to access Mercedes-Benz vehicles in Philadelphia and Nashville with the launch, the company said in an announcement.

“We’re always looking to stay ahead of our customers’ needs and wants, as well as to bring new people to the brand,” Dietmar Exler, president and CEO for Mercedes-Benz USA, said in the announcement. “We know there is a market opportunity for people who would like the ability to move in and out of vehicles, depending on what they need or want at a particular point in time, or who don’t want to own a vehicle right now. That’s why we are excited to test the waters with Mercedes-Benz Collection.

With the pilot, Mercedes-Benz is launching three tiers: Signature, Reserve and Premier. Drivers can select from any vehicle body style offered within their selected level. Vehicles offered include SUVs, sedans, coupes, cabriolets, wagon models and even roadsters.

The news comes as BMW geared up to launch a car subscription pilot — called Access by BMW — in Tennessee earlier this year. According to Bloomberg, the service was to be offered by a local BMW dealership in Nashville starting on April 2. BMW’s North American CEO, Bernhard Kuhnt, spoke about the company’s plans for a subscription-type service at the Detroit Auto Show in January. But while a company spokesman confirmed that BMW is planning a subscription pilot program in 2018, there were no additional details given at the time.

This type of service is one strategy automakers use to attract younger customers. Last year, Cadillac launched a car subscription concierge service of cars and SUVs called BOOK. The service allows for the company’s vehicles to be delivered and picked up on demand via a smartphone app. The program will be available in New York City and expand to additional larger U.S. cities over time.

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