- Pictured above: 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)
AUTONOMY, a leading EV subscription company based in Santa Monica, California, is pivoting from vehicle subscriptions to launch a new SaaS business in partnership with Deloitte, called Autonomy Data Services (ADS).
Autonomy Data Services 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.
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 says it 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 utilisation, 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. 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.”
Scott Painter, founder of ADS
ADS offers 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, says ADS.
As part of its strategic shift, ADS has acquired key assets from Shift, Canvas, UberXChange Leasing, and Fair. ADS said 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. Here at ADS, we are now a bigger believer in the subscription model more than ever.”
George Bauer, Executive Chairman of ADS
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 favouring flexible, all-inclusive plans over traditional vehicle ownership, according to ADS.
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.
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