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Porsche Drive (A): Vehicle Subscription Strategy
Car manufacturers offered car subscription programs, allowing customers to access cars for a flat monthly fee that covered the vehicles’ cost, maintenance, and insurance. Unlike traditional leasing or financing options, these subscription programs provided an appealing alternative for customers who wanted to avoid long-term ownership commitments and appreciated the all-inclusive convenience. Since 2017, several car manufacturers had launched subscription programs with both successes and failures. As of the summer of 2023, only Porsche and Volvo continued to offer subscription programs in the United States. The case examines the continuously evolving Porsche Drive subscription program and explores its development, supply chain and pricing strategies, and future challenges.