Leading EV Subscription Co. Launches New SaaS Platform in Partnership with Deloitte

August 11, 2024 at 18:00 PM EDT

Autonomy, the leading EV subscription company, announces it is pivoting from vehicle subscriptions to launch a new SaaS business, Autonomy Data Services (ADS), in partnership with Deloitte. ADS has secured $2.5 million in new funding and completed a $32 million debt-for-equity swap, along with acquiring all subscription-related technology and intellectual property.

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Deloitte and Autonomy team at the Move America Conference in Austin, Texas. September 2023. From left to right: Rodolfo Dominguez, Jim Nguyen, Heather Weiss, Alexander Kantor, Ann Marie Jacobs, Mac Makhni. (Photo: Business Wire)

The automotive landscape is experiencing significant shifts, particularly with the chaos surrounding residual values and their impact on ownership for both consumers and fleet operators. Autonomy has survived these turbulent times and is emerging stronger, pivoting to a renewed focus on technology and subscriptions.

Subscriptions have proven their efficacy: the technology is robust, vehicles are performing well, and there are low delinquencies and defaults. Strong consumer demand, driven by lower prices and an easier process, coupled with high utilization, confirms the effectiveness of the subscription model.

“With Deloitte as our partner, ADS is set to expand its market reach by leveraging Deloitte's extensive network and expertise,” said Scott Painter, founder of ADS. “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 introduces a new business approach with no 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 offerings. This model is already operational and generating revenue with existing clients.

As part of its strategic shift, ADS has acquired key assets from Shift, Canvas, UberXChange Leasing, and Fair. The acquisition, valued between $10 to $12 million, provides a solid foundation for the company's new business model. The acquired intellectual property includes brand names, domain IP, compliance, legal work product 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. “Here at ADS, we are now a bigger believer in the subscription model more than ever.”

The automotive industry is evolving with the rise of electric vehicles (EVs) and sustainable transportation solutions. In 2024, the vehicle subscription market is expected to be valued at USD 4.52 billion and is projected to grow at a compound annual growth rate (CAGR) of 34.2%, reaching USD 35.49 billion by 2031. Consumers are increasingly favoring flexible, all-inclusive plans over traditional vehicle ownership.

A 2024 Deloitte consumer study revealed that 45% of US consumers are reconsidering vehicle ownership, and 28% of 18-34-year-olds prefer subscription services (29% in Germany). This trend aligns with ADS's strategy to lead the next wave of innovation in subscription services and digital mobility solutions.

About Autonomy

Autonomy is a mission-driven company that uses technology to accelerate the adoption of electric vehicles by making them more accessible and affordable. The company was founded by Scott Painter and Georg Bauer, disruptors in the auto retail, finance, and insurance industries who pioneered the Car-as-a-Service (CaaS) category with the first-ever used-vehicle subscription offering, Fair. Building upon that experience, Autonomy is up-leveling its commitment to carbon neutrality and financial inclusion. Its customers have driven over 11 million miles to date, saving more than 9.7 million pounds of CO2 from being emitted into the earth’s atmosphere. Easier to qualify for than a lease, its low commitment, 100% digital solution allows people to pay monthly on their credit card and aims to get more people driving EVs who otherwise might not be eligible or interested in traditional lease or loan products. And unlike leases of loans, everyone who qualifies is charged the same rate regardless of FICO score. Autonomy believes that the future of mobility is electric. It exists to enable that transition more rapidly through innovations in technology, finance, and insurance. Autonomy is based in Santa Monica, California.

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