Mercedes-Benz Car Subscription Is Wildly Successful After Year One
M-B’s pilot program is taking off like a rocket, and 82 percent of all its subscribers are newcomers to the brand.
To celebrate the one-year anniversary of Mercedes-Benz Collection, the automaker’s luxury vehicle subscription service, Mercedes-Benz is expanding its highly successful pilot program to Atlanta, Mercedes-Benz USA’s headquarters.
Based on subscriber preferences, Mercedes-Benz Collection is also expanding its Nashville, Tennessee offering to include an additional (Premier) tier. Mercedes-Benz Collection allows subscribers to switch between different types of vehicles depending on their needs or lifestyle. With over 50 model variants in the program, the concierge-driven service offers the broadest selection of any vehicle subscription service in the luxury market for drivers who prefer variety, flexibility and convenience. In the weeks ahead, Atlanta will also test a new subscription tier, which will consist exclusively of the company’s high-performance AMG models.
A collaboration between MBUSA, M-B Financial Services USA LLC and Mercedes-Benz dealers, Mercedes-Benz Collection launched in June 2018 as a pilot in two markets: Nashville and Philadelphia. Based on a recent agreement between Clutch Technologies and Mercedes-Benz, the Atlanta expansion will involve offering Clutch Georgia members the opportunity to transition to a Mercedes-Benz Collection subscription. Mercedes-Benz Collection will continue to be powered by the subscription platform from Clutch Technologies.
“The pilot program far exceeded our expectations. Eighty-two percent of the subscribers are new to Mercedes-Benz, and we are hitting the mark attracting younger drivers who might not otherwise have the opportunity to experience the brand at such a young age,” said Adam Chamberlain, vice president of sales for MBUSA. “Interestingly, families and couples are equally accessing the service whether for use as their primary car, for fun or as a way to test drive a wide variety of models.”
“Mercedes-Benz Collection is proof that there is a strong appetite for services that provide people with the flexibility to move in and out of various Mercedes products, depending on their needs, without the added effort of managing vehicle insurance, maintenance or mileage limits,” Geoff Robinson, vice president, Mercedes-Benz Financial Services USA LLC. “Based upon market input and the learnings from our pilot programs, we continue to fine tune our offering to meet the changing demands of our customers.”
There are three tiers currently in the program – Signature, Reserve and Premier – with prices ranging from $1,095 to $2,995 per month (depending on city/level). Subscribers pay a one-time activation fee of $495 and may then choose from a broad array of Mercedes-Benz vehicle styles offered in that subscription tier, including Mercedes-Benz SUVs, sedans, coupes, cabriolets, roadsters and wagon models. Each tier also allows access to the company’s popular high-performance Mercedes-AMG models. The monthly subscription fee for the tier also includes insurance, 24/7 roadside assistance, vehicle maintenance and no mileage limitations.
The Mercedes-Benz Collection works through a combination of the Mercedes-Benz Collection app and a local concierge. Once subscribed, customers initiate vehicle exchanges, concierge communication and other actions via the app. Concierge staff then ensure the delivery is consistent with the details and preferences in the customer’s profile.
How It Works
- Those interested can download the Mercedes-Benz Collection app via the Apple App Store or Google Play Store and hit “Sign up;”
- Users create an account (provide a credit card, select a plan and provide a picture of the driver’s license associated with the account);
- Information is verified and driving and credit history are checked. In most cases, the application is processed, and the subscriber is contacted within one business day;
- The subscriber is contacted to find out his or her vehicle needs and desired delivery time and location. After the first delivery, subscribers put their requests in via the app. Requests received by noon can typically be fulfilled the next day;
- A concierge delivers the new vehicle washed, with a full tank of gas and takes away the previous vehicle.
Photos for MB World by Derin Richardson