2023 With the arrival of reliable fast networked digital information businesses can track the location and status of all kinds of | Assignment Collections

  With the arrival of reliable, fast, networked digital information, businesses can track the location and status of all kinds of objects, such as cars and bicycles. This is introducing a new business model different from individual ownership—now, using a car can become a “subscription” service. What options are there for “subscribing” to a car instead of owning one? How about for a bicycle? Are there other businesses you can identify that would be able to take advantage of digital information and become subscription services instead of vendors of a physical product? What are the advantages to the consumer of subscription over ownership? What are the drawbacks? 

Reply(Shiva)

Car subscription services have become very popular across all classes in society. People find it easier and appealing to subscribe rather than buy a motor vehicle. The traditional ownership model is slowly fading out. There are some few subscription varieties.

The first one is the flip service. In this option, a person is allowed to change vehicles are regularly as he can be able within a given time period, say a month(Lachnit, 2018). A specific carmaker allows the subscribers to choose only from its own models. On the other hand, an independent dealer gives freedom to choose from different brands within the subscription period.

Option two is a one-car service. This allows a person to use only one model per subscription. Insurance and maintenance are always catered for within this period. The last option is known as stay awhile. Here, the cost of subscription becomes lesser with an increase in the subscription period. People are encouraged to subscribe for longer periods. Bicycles options also vary. The most common one is the Vanmoof option where one pays a one-time payment followed by a monthly subscription fee. Swapfiets services give a bike and support services upon payment of a monthly subscription fee.

Other products that can use subscription include plant machinery and equipment. Subscribing to these services would help a business to use the little capital available for production rather than buying the machinery. Electronic gadgets would be convenient for a subscription since we replace them often. Subscription has a number of advantages.

It offers flexibility to customers and helps subscribers to spread out the cost over a certain period. In this case, fixed cost is transformed to manageable variable cost. It also guarantees high-quality services from providers. Price is simplified and upfront payments removed. On the other hand, the total cost may end up being high(GarageFly Digital, 2017). In addition, drivers must keep the vehicle in their possession during the subscription period.

References

GarageFly Digital. (2017, July 18). The Pros and Cons of a Vehicle Subscription Service | Quebedeaux Collision. Retrieved October 26, 2018, from http://quecollision.com/pros-cons-car-subscription-service/

Lachnit, C. (2018, May 4). To buy or not to buy? Car subscriptions offer alternative for new car shoppers. Retrieved October 26, 2018, from https://www.usatoday.com/story/money/cars/2018/05/04/buy-not-buy-car-subscriptions-alternative/572538002/