The Future of Mobility

In a world where change is the only constant, our concept of mobility is undergoing a transformative shift. Deloitte's report sheds light on this shift, revealing a growing trend away from traditional car ownership, and towards subscription-based models.

At Carbn we’ve been laying the foundations to prepare for this change for several years. Our motto, "fewer cars, less emissions, same convenience," embodies the future we are preparing for, where Mobility as a Service (MaaS) plays a key role in how us busy folk get from A to B.  

Deloitte's research indicates that by 2025, more than €22 billion (NZ $44 billion) in annual auto financing will transition to subscription models in Europe's five largest markets. This represents a massive shift – 8-10% of new vehicle registrations are expected to be based on subscription models.

This shift is pointing at a broader trend: consumers are increasingly seeing car ownership as a burden rather than a benefit (a feeling accelerated by the pandemic), which has reshaped perceptions towards personal mobility.  

There are many forces at play here, with growing space constraints in our cities and rising costs in virtually all areas of life being the big ones. Owning a car is expensive – not just the upfront cost but the ongoing expenses, not to mention the uncertainty of knowing a big repair bill could land at any time. It’s true that during economic downturns especially, rethinking such large financial commitments is more common. Reliability and flexibility become even more valuable to people. People don’t want to be locked into long-term financial obligations.

Vehicle subscriptions eliminate many of these uncertainties by offering a fixed monthly fee that covers most car-related expenses, making financial planning easier and reducing the risk of unforeseen costs.  

The same applies to the businesses who employ these drivers – many of whom offer mobility options to their people so they can do their jobs.

Where the cost of living crisis reinforced the trend towards reduced car dependence among private drivers, the pandemic has played a pivotal role in changing how employees move. Usage patterns for our roads changed drastically post-COVID – you've probably noticed the slog of the Tuesday and Thursday commute. Subscription models are helping businesses make their fleets work more efficiently in light of these changing usage patterns, allowing for more per-vehicle utilisation than ownership or traditional leasing arrangements allows.  

The Deloitte report emphasises the need for a holistic approach to subscription services - one that combines customer experience with digital innovation.

Vehicle subscription services are more than just a trend. It's the future of mobility. Affordability, ease of access and simplicity of use are what people want. It’s what employees need, to be able to give their best. It’s a picture many businesses are trying to figure out. The potential for these services in Aotearoa New Zealand is expanding and at Carbn we are helping businesses maximise on this opportunity, for both drivers and employers alike.  

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