Last week, Fisker Inc. announced its plans to enter the vehicle subscription market. The company will offer consumers early access to the Fisker Ocean, an all-electric luxury SUV, via subscription for $379 a month. Prospective subscribers can reserve their Fisker Ocean now for $250, which is fully refundable. Unfortunately, eager drivers will have to wait until 2022 to take delivery on their cars. Much like a lease, subscribers will have to make a down payment of $2,999 before receiving their vehicles. Customers with approved credit also have the option to finance the down payment.

As with most vehicle subscriptions, there are no long-term contracts, and each subscription allows for 30,000 miles per year. Flat rate pricing includes maintenance and repairs. Prospects can sign up now through the companys website or mobile app.

Our mission is to become the No. 1 e-mobility service provider on earth, featuring the world’s most desirable and sustainable vehicles while shaking up the old automotive industry model – from the way a customer attains a vehicle, chooses affordable insurance, services a vehicle to the overall mobility experience,” said Henrik Fisker, chairman and CEO of Fisker Inc., in a November 27 announcement.

“People around the globe will be able to obtain the Fisker Ocean starting at $379 (U.S.) per month via our mobile app in 2022. We created five easy-to-choose option packages for Fisker Ocean that will be available to our reservation holders closer to the end of 2020. This removes the complexity of complicated option configurators and allows Fisker to offer more unique experiences for less money. Customers will be able to see the vehicles and option packages when we begin rolling out our experience centers in shopping districts and airports, as well as book test drives through our app closer to the start of production, Fisker added.

Calling the Ocean the worlds most sustainable vehicle, Fisker plans to reveal a prototype of the SUV in January 2020. It will make a very limited number of vehicles available.

Fisker shared additional details about the vehicle and the subscription experience:

• In 2020, customers can see vehicles and option packages in experience centers.
• In 2021, customers can schedule test drives through the Fisker mobile app.
• Through the Fisker mobile app, drivers can get insurance quotes.
• The company will offer concierge service, including free pick-up and delivery, when vehicle repairs or maintenance are needed.

Fisker Inc. believes that the industry should stop looking at innovation superficially and start taking responsibility for its products, end-to-end – giving customers the opportunity to contribute to a more sustainable future, said the company.

As part of this commitment, the company has promised:

• A full-length solar roof to improve fuel efficiency and reduce carbon dioxide emissions
• Fully recycled carpeting
• Vegan interior
• Eco-suede interior textures and patterns

Insider Take:

This is an interesting model. Though it is being touted by the media as a subscription, it is essentially a flexible lease with an initial down payment. The only difference is that the term is flexible. You can drive the vehicle for 6 months or 6 years, and you will have the same commitment – the initial payment and the monthly subscription fee of $379. What we find particularly fascinating is the early announcement. It is one thing to announce in 2019 that you are launching an exciting new product and subscription program in 2020, or even 2021, but 2022? That seems like a long time to get and hold a prospective subscribers interest. We think this vehicle will appeal to the environmentally conscious who do not have a sincere desire to own a vehicle – and who want something that is somewhat exclusive. We arent quite sure how a lead time of two-plus years will work out for them though, especially since the vehicle subscription market is still in a state of evolution. A lot could change between now and the time the Ocean is ready for the road.