Porsche Unveils On-demand $2000 Car Subscription Service

Porsche, Mission E, TeslaMahal / Pixabay

Porsche is launching the new app-based subscription service, Porsche Passport, wherein the customers can get a ride in one of the many Porsche sports cars starting for $2,000 per month. The service includes “frequent” vehicle swaps, unlimited mileage and covers major expenses for 22 cars.

“With Porsche Passport, we now offer our customers a simple and flexible driving solution at their fingertips,” said Porsche Cars North America president and CEO Klaus Zellmer, in a press release. For now, the Porsche Passport is being tested in Atlanta. A Porsche spokesperson said that once they start receiving feedback in Atlanta, this subscription-based service would be rolled out in other markets.

By paying $2,000 per month for the entry-level “Launch” plan, a customer would get access to eight vehicles including the Boxster, Cayenne, Macan S and Cayman S. For unlocking all the 22 cars under the plan including the 911 Carrera or Panamera 4S, customers will have to shell out an extra $1,000 to subscribe to the Porsche “Accelerate” plan. For both of the plans, a minimum 30-day commitment is required.

Porsche notes that the monthly fee paid by the subscriber is inclusive of insurance and taxes. Further, maintenance of the car is also covered along with cleaning and delivering to the customer. All the customer needs to do is mention the time and location of the delivery. Further, members are free to swap the cars any number of times, and there is no mileage limit.

With the Launch and Accelerate plan, Porsche is looking to tap millennials, who are largely dependent on ride-hailing apps such as Uber for their daily commute. During a phone interview with Bloomberg, Zellmer said, “We now have millennials who are incredibly successful and have the financial power to own a Porsche, but might not be willing to own a Porsche today.” The company, according to Zellmer, is confident that the latest service will drive the sales growth going forward.

Porsche lovers who want to experience what it is like to drive a Panamera can download the Porsche Passport app on their iOS or Android smartphone. After getting approval, a user will have to pay a $500 activation fee. Once background and credit checks are complete, deliveries will start. Porsche stated that the deliveries of the cars will start next month. To ensure the smooth running of its app-based plan, the German automaker has partnered with the Atlanta-based software startup Clutch Technologies LLC.

Porsche Passport is not the first car subscription service to be launched this year. Earlier this year, General Motors started offering Cadillac on a subscription basis, and there is also a Care service by Volvo, which combines maintenance, lease and insurance into one monthly payment.

Meanwhile, Porsche is also aggressively moving ahead with its electric car project. It is expected that its fully-electric Porsche Mission E will arrive somewhere in 2019. The company, however, is already showcasing the underlying technology with a new battery-powered Porsche Cayman e-volution concept car.

According to Porsche, it has no plans to continue the e-volution beyond concept car. The concept car will take charge from the Turbo charging system, which the company plans to unveil along with the Porsche Mission E in 2019.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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