Enterprise Launches Car Subscription Service in Three States

Subscribers in Minnesota, Missouri and Nevada will be the first to try Subscribe with Enterprise.

Subscription News: Enterprise Launches Car Subscription Service in Three States

Source: Enterprise

Enterprisekicked off the month by launchingSubscribe with Enterprise, the companys first car subscription service. The new subscription service will be tested in three states to start: Minnesota, Missouri and Nevada. For one monthly fee of $1,499, exclusive of taxes and other fees, subscribers can choose from more than 20 makes and models, including different vehicle classes including full-size, small and mid-sized SUVs and light duty trucks. They can swap out their vehicles up to four times a month, and an Enterprise representative can deliver vehicles or the customers can pick them up.

Were starting out in just three states to make sure we have enough time to develop a deep understanding of the subscription process and consumer preferences, said Randal Narike, Executive Vice President of Operations for Enterprise Holdings.

Subscription News: Enterprise Launches Car Subscription Service in Three States

Source: Enterprise

Consumers have asked us for long-term rental options that offer a new level of flexibility for when they need a sedan, an SUV or even a truck, added Narike. This service expands on our commitment to provide customers with innovative mobility alternatives that meet them where they live and work.

The minimum commitment to participate is two calendar months. The monthly subscription fee includes up to 3,000 miles per month, vehicle maintenance, roadside assistance, damage and liability protection and, in some cases, SiriusXM radio. Approval is required to subscribe to the program. Once a subscriber is approved, they will receive a confirmation email and can contact a program concierge to make their first vehicle reservation.

To be eligible for the subscription program, a subscriber must be at least 21 years old, have a valid U.S. drivers license, in good standing, with their name and photo, and current, verifiable email and physical addresses. Upon acceptance, Enterprise will charge the subscribe a non-refundable fee of $250 and estimated taxes, based on the first full calendar months subscription fee.

At the outset, Subscribe by Enterprise is available in these cities:

  • Minneapolis, St. Paul, Rochester and Duluth, Minnesota
  • St. Louis, Kansas City, Columbia and Jefferson City, Missouri
  • Las Vegas, Henderson and Reno, Nevada

Narike said he believes the company is well-positioned to be competitive in the auto subscription marketplace between they know how to give customers the services they want and need.

A one-size-fits-all approach just dont work anymore, said Narike.

The subscription terms and conditions reveal the fine print. For example, though Enterprise may accept a subscriber into the program, the subscriber is not guaranteed access to or use of any specific vehicle. Also, the vehicles made available to by Enterprise are subject to change without notice. When a subscriber wants to swap out a car, they must call the dedicated subscription line and provide at least three business days notice. Anyone exceeding the 3,000 mile per month limit will be charged $0.40 per mile for each mile over the mileage cap.

Insider Take:

The program allows subscribers to select vehicles like the Nissan Altima, Toyota Camry, Toyota RAV4, Ford Escape and the Nissan Pathfinder, but regardless of type, it appears that the monthly subscription fee is the same -$1,499, not including taxes and fees. While this may include vehicle maintenance, roadside assistance and SiriusXM, thats a pretty steep price tag.

In a 30-day month, that $1,499 fee works out to be almost $50 a day. For a Nissan Pathfinder which rents for about $107 a day (in Duluth, Minnesota) and larger or premium vehicles, thats a deal. For any other vehicle type, Enterprise is making a substantial premium. For example, a full-size Ford Fusion, rents for about $30 a day (in Duluth, Minnesota). Essentially, Enterprise seems to be repackaging a short-term rental into a longer-term rental without a discount for longevity. This program might need some tweaking to be successful.

Subscription News: Enterprise Launches Car Subscription Service in Three States

Source: Enterprise.com