Subscription for Cadillac, anyone?

Cadillac has introduced an app called, “BOOK by Cadillac”. The app allows users to subscribe to Cadillacs for USD 1,500 per month, however, there is a one-off membership fee of USD 500 when you register on the app. It’s cancellable at any time and a vast range of the current models can be subscribed to. Once subscribed the models can be swapped for one another for up to 18 times per year.


Image Credit: JM Legend Autogroup

The app is currently a beta version and Cadillac is currently only offering this service in the New York Metropolitan area. Costs such as maintenance, registration, taxes and car detailing are covered and other costs such as fuel, fines, toll changes are to be borne by the subscriber. A premium is not being charged as part of the service therefore, the monthly subscription of USD 1,500 does not vary based on the model that the subscriber has chosen or swaps.

Business Insider reports that the pricing may be revised when the subscription offering is more widely offered in the United States.

While subscription fee is not within everyone’s reach, it does provide customers who are unable to purchase a luxury car, a chance to get the feel of driving one for a fraction of the price.

While subscription is a popular revenue model for eCommerce, it’s quite refreshing to see a car manufacturer adapt to such a strategy.

Do you think other luxury car manufacturers will follow suit? Have any of you come across similar subscription revenue models being adapted by businesses in the luxury sector through their digital marketing platforms? If yes, please comment with the link below.

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