Haley Burns, Principal Product Manager at Ridecell talks about subscription-based models, how they help companies transition from vehicle ownership to vehicle usership and the importance subscription models play in modernizing and monetizing fleet operations.
https://ridecell.com/
https://www.linkedin.com/company/ridecell/
https://twitter.com/ridecell
Haley Burns, Principal Product Manager at Ridecell talks about subscription-based models, how they help companies transition from vehicle ownership to vehicle usership and the importance subscription models play in modernizing and monetizing fleet operations.
https://ridecell.com/
https://www.linkedin.com/company/ridecell/
https://twitter.com/ridecell
Stacey Papp:
Welcome to the Mile Marker Podcast. My name is Stacey Papp, and I will be your guide taking you on a journey into the world of fleet automation and shared mobility focusing on innovations for businesses with fleets. Joining me today is Haley Burns, Principal Product Manager at Ridecell. As a product manager, Haley builds bridges between the areas of technology, business, design, and customer service. Focusing on the future of technology in the mobility industry, her expertise in building technology solutions from moving from vehicle ownership to usership helps to create a connected and cohesive transportation experience for Ridecell customers. Today she talks about how subscription models are helping fleet based businesses evolve and expand their mobility offerings and types of tools they will need as they roll out these types of programs with their fleets. Welcome, Haley. It's so great to have you here.
Haley Burns:
Thanks so much for having me. It's great to be here.
Stacey Papp:
Absolutely. Let's just jump right in into the world of subscriptions. Can you explain what subscriptions are for fleet based businesses?
Haley Burns:
Sure. At a basic level, subscriptions is one type of monetization model that allows fleet based companies to offer dedicated vehicles to either end users or businesses for a flexible period of time on a short, medium, or long-term basis. We can also offer certain perks to the end users, like the ability to swap models or pause their subscription for some period of time. And with the Ridecell platform, subscriptions is one option within a broader set of monetization models that we offer, with the goal of maximizing revenue generation per asset, and then if desired, selling the vehicle at the highest resale value possible. So whether a fleet based company wants to offer vehicles by the minute, hour, days, month, or months, we can offer that flexibility to them through our platform.
Stacey Papp:
I think you touched on this a little bit, but I definitely begs to ask the question again. What are some of the main benefits of subscriptions?
Haley Burns:
Yeah. We see several key benefits to fleet based companies in offering a subscriptions program. The first is to open up to a new market of users or a customer segment who prefer the flexibility and desire not to own a particular vehicle, but would like to use it. The second is to expand their offering to their current customer base by allowing them to access vehicles when they travel or need a different type of vehicle temporarily.
Stacey Papp:
Talk to us about how a subscription based model can modernize the way fleets recognize revenue. I know you touched on that in the first question on monetization, but revenue recognition, especially in the world where people may not be car owners and vehicle users instead, but really how does that help modernize fleet operations overall?
Haley Burns:
Yeah. The subscription model can help OEMs and other fleet based businesses understand and find their foothold as they see movement away from predominantly ownership based need to a usership based need. As a user behavior and the evolution of the shared mobility market challenges the importance of vehicle ownership, this enables these businesses to grow into this space and open up new revenue streams by allowing users to use vehicles without all the responsibility of owning them. At the same time, the brand can remain at the center of the subscription model. Also, we're seeing an interest in subscriptions as a driver for a go-to-market strategy for EV adoption. Some users are hesitant to own an EV vehicle, but are willing to try them out with a model like this. Eventually they may convert to owning an EV, creating a win-win for our OEMs. Subscriptions also command higher average revenue per unit than traditional leases or rentals.
Stacey Papp:
I want to ask this question, and you might know where I'm going with this, but in a post pandemic world, or even on the tail end, I never want to say post pandemic 'cause I don't know if that'll happen, but on the tail end of a pandemic, have you noticed subscription-based models being increased or the usage being increased in a world where people predominantly really work from home or they're commuting or they're using more city transportation versus owning their own vehicles, which a lot of people ended up getting rid of because they became primarily work from home based.
Haley Burns:
Yeah, we're definitely seeing a revitalization, I would say, in an interest in running and using subscription based models since the pandemic has kind of started to calm down a little bit.
Stacey Papp:
I want to take this next question and focus a little bit more on Ridecell's portfolio. Where does Ridecell's portfolio solution come in for fleets who are looking to use a subscription solution?
Haley Burns:
Great question. Our multiservice offering supports the entire spectrum of vehicle usership, as we discussed a little bit earlier. So by the minute, hour, day, week and month or multiple months. Subscriptions is one of the monetization models of usership that fleet based companies can take advantage of on our platform. There are also several trends we're seeing in the industry that our portfolio of solutions can help to support, being more sensitive to sustainability, the shift from ownership to usership and the need for more flexibility in these increasingly uncertain times make it essential for the fleet based companies to have tools like ours to monetize their fleets in different ways. Also, we help fleet businesses think beyond just subscriptions and the user experience needed to power a program like that and more about what makes those businesses successful. So what are the back office tools and capabilities that automate operational processes which reduce costs and make the overall program financially stable and viable. This is where Ridecell's operational and automation capabilities are tightly integrated with the monetization model like subscriptions to help fleet businesses succeed.
Stacey Papp:
Can you talk a little bit more about the user experience and what Ridecell provides in the form of solution helps enhance that portion of operations for fleets?
Haley Burns:
Sure. Yeah, Ridecell provides white labeled apps and web interfaces that allow users to gain access to these fleets in many different types of ways. Say, it's on demand car sharing, or a business to business scheduled rental, or even something like a subscriptions program like this, we offer that all out, make it highly customizable so that brand and the tone that our OEMs and other fleet based businesses want to speak to their users is preserved within that.
Stacey Papp:
It becomes more seamless using the right type of solution?
Haley Burns:
Exactly.
Stacey Papp:
Keeping with the seamless theme, what are some of the characteristics fleet based businesses should look for when they search for a solution that can help manage subscriptions?
Haley Burns:
I think finding a platform that has that type of flexibility, the ability to expand rapidly and the ability to experiment with a new type of program like this is key. Also, having a platform that can reduce operational cost and maximize revenue through smooth and scalable operations makes a big difference. Lastly, being able to gain valuable insight like when to resell or move vehicles to other business models can put a lot of value behind this type of program.
Stacey Papp:
Let's go from the micro view to the macro view. What innovations do you feel are on the horizon for subscription technology specific to the mobility industry?
Haley Burns:
I think we'll see dealers start to enter as a key player in the subscription model in a different way than you see them in an ownership based model. They might become the local test drive maintenance and the pickup drop-off hub for these types of programs. Also, I think we'll see innovations on the operational side, go to market strategies, and in the level of flexibility offered to the end users with these types of programs.
Stacey Papp:
The next question I'm going to ask you is my favorite question. It's not our last one, but it's my favorite question and it's a crystal ball question, and I ask everybody this because it really gives an insight into not only the industry, but how everyone's brains work when it comes to forward-thinking. So, if you had a crystal ball, what does the world of subscriptions look like in 5 to 10 years for fleet based businesses?
Haley Burns:
I love this question. I think it will become much more common and available to users in the next 5 to 10 years. I think you'll see more OEMs embrace and scale these types of programs. And again, they might be using this type of program to help drive EV adoption as sustainability becomes more of an important and often mandated concept in the automotive industry.
Stacey Papp:
Now, this is our last question and I promise you that. Where can folks go if they want to learn more about Ridecell and the subscription solutions that we offer?
Haley Burns:
Yeah. We have a lot of great information on our website along with the ability to send in a request to speak to our team directly about how our platform can give them the tools to monetize their fleet through models like subscriptions.
Stacey Papp:
Awesome. Well, Haley, thank you so much for joining me today and giving us a glimpse into the world of subscriptions. As always, your insights are always so awesome and no doubt will help those folks who; A, either did not know like myself, I'll admit that, or B, are looking to make the right selection in a subscription based model for their business. Again, I appreciate you joining me and just kind of giving us this forward look in into what subscriptions hold for fleet based businesses.
Haley Burns:
Thank you for having me, Stacey. It was great to be here and talk about this amazing technology that can truly change how fleets in this space operate.
Stacey Papp:
Absolutely. Until the next time, keep moving the world better.
Stacey Papp:
Thank you for listening to the Mile Marker podcast. Stay tuned for another episode full of insights and ideas to keep the mobility industry moving forward. In the meantime, follow us on social media and be sure to like, comment, and share today's episode.