Mercedes Benz recently launches its Benz Collection car subscription service and in so doing, joined the likes of Lincoln, Cadillac and BMW in the luxury car subscription industry. The service is app based and initially available to drivers in Philadelphia and Nashville with three pricing tiers ranging from $1,095 to $2,995 per month. Those who subscribe to the service are going to get access to 30 different models from GLE SUVs to C class sedans.
They will also be able to swap cars as often as they want depending on the package they have selected. Dietmar Exler, the CEO of Mercedes USA claimed that the brand is always looking to stay ahead of the needs of the customers and bring others to the fold.
Subscription Service Details
The Mercedes collection membership requires a one-time activation token of $495. Thereafter, the three tiers include signature, reserve and premier, though only signature and reserve are currently available in the aforementioned cities. Signature goes for $1095 while Reserve is $1595 per month. Signature will avail coupes, C-class sedans and convertibles as well as the GLC 300 SUV. The middle tier allows for E-Class sedans, wagons, convertibles and coupes. Four AMG models are on offer, as are the C43 sedan, GLC 43 SUV and the C43 coupe. The plans come available with roadside assistance, service and maintenance as well as insurance. There also be a concierge that will flip the client from one vehicle to another.
It should be noted that the packages on offer are comparably cheaper as compared to other subscription services like Cadillac, Porsche and BMW. These range from $1500 to $3000 per month. Apparently, the only service which happens to be cheaper than Mercedes is Care by Volvo which only charges $600 per month. This is inclusive of roadside assistance, maintenance, and insurance though the downside is it only offers one vehicle; the XC40.
Mercedes Heeds the Call of Customer Centricity
Mercedes is clearly fulfilling an increasingly significant market need. Clients are searching for a means to enjoy the car experience at a higher level than before and that may not necessarily mean buying the best there is out there in the market. People are going for the best experience but do not necessarily want to be committed to one decision for a number of years. if they have the money, then the luxury car subscription service would be the best avenue to exploit their new tastes.
In so doing a client can have an SUV for one month and then switch to a convertible or sedan in the next month or weeks if they so choose or require it. As such, the Mercedes USA, chief executive was right when he claimed the presence of a market opportunity for people who would like the ability to move in and out of vehicles depending on what they want or need. There are implications the coming EV era will have brands move to more of a car subscription service as powertrains become immaterial. The car experience is steadily transforming to become more customer centric and so the cars themselves lose priority in terms of their standalone value and become tools rather than priced possessions.