Australians could soon pay for Uber like Netflix with an expert predicting the nation’s automotive sector is undergoing a revolutionary subscription-based boom.
EXCLUSIVE: Australians could soon pay for Uber like Netflix with an expert predicting the nation's automotive sector is undergoing a revolutionary subscription-based boom.
The subscription model has moved beyond entertainment services such as Netflix or Spotify, recently surging in popularity with car leasing schemes and even meal delivery.
KPMG automotive analyst Steven Bragg told 9News the automotive industry would change rapidly in the next 20 years, predicting Uber would soon jump on the subscription bandwagon at full speed.
"Uber will switch from specifically having someone who calls for a car, to someone who subscribes to a service of mobility," Mr Bragg said.
"It means someone will have access to a certain amount of kilometres or rides per day.
"It's going to be quite disruptive, but there's also a lot of opportunity for a lot of people."
Mr Bragg also predicted up to 100,000 people would stop buying new cars each year and instead steer towards car leasing schemes, due to the rising costs of ownership.
The Federal Chamber of Automotive Industries' 2019 sales report showed 1,062,867 new vehicles were sold in the 12 months to December 31 - the lowest total in eight years.
Mr Bragg said the schemes range from short-term and month-to-month options, to long-term hire enabled through a subscription fee.
The growing market is believed to be driven by factors of affordability and flexibility due to no lock-in contracts or large payments up front.
"As cars become more expensive its popularity will increase," he said.
"You have flexibility in the contract and the cars you can drive."
Australian subscription services such as FlexiGo, Carbar and Carly differ from membership programs like GoGet by allowing people to choose their own car, rather than share it.
Carshare service GoGet, which allows drivers to hire a car for as little as one hour, has also grown rapidly over the past few years, with 17 per cent of all City of Melbourne households holding a membership to the service.
Leasing costs start from $76 per day, on top of a membership fee of $30 a month, for members opting to drive once a week or more.
One shared vehicle claims to take 10 private vehicles off the road, freeing parking and reducing traffic.
Melbourne member Jeremy Lawrence, who lives in inner-city suburb Cremorne, said he joined the service 10 years ago in order to casually use a car.
"We are close to the city and we find we can manage pretty well without owning a car," he said.
"But I wanted access to a car for odd trips, taking kids to a birthday party, or hiring a ute to carry a table."
He said the service appealed to him, as he could easily change cars and park in designated GoGet spaces.
"I can pick and choose which car I want and I don't have to worry about maintenance," Mr Lawrence said.
"It shows you a map of where you are and a list of the cars that are closest to you."
Source: 9News https://www.9news.com.au/national/uber-could-move-to-subscription-model-according-to-analyst-prediction/3d53d5b3-7159-4eb4-afaf-48b94228e6af