The market reaction is flat: Mercedes-Benz stops its car subscription service

Mercedes has stopped its subscription service for two years because of flat sales,media reported. Adam Chamberlain, Mercedes-Benz’s head of U.S. sales, said the service was a learning experience that could have been expanded if sales had improved. “If demand is very good, it may go further,” he told Automotive News last week. But if it works, we’ll leave it. “

Mercedes-Benz launched its Collection subscription service in Atlanta in 2018, with the goal of attracting customers who want to own a fleet of luxury cars but don’t necessarily want to own a luxury car. The service provides users with 30 models per month, including insurance, round-the-clock roadside assistance and vehicle maintenance.

The market reaction is flat: Mercedes-Benz stops its car subscription service

But its scope never extended beyond the original pilot cities of Philadelphia, Atlanta and Nashville. The service attracts hundreds of customers, and Mercedes executives had expected the service to be profitable in the first 12 to 18 months, Auto News reported. But now a spokesman says the pilot program will end on July 31.

“From the very beginning, the Mercedes-Benz Collection was designed as a pilot project; In a statement, Mercedes said, “After two years of operation, the pilot project is over and it is time to end MB Collection.” The information and experience we gain from the pilot on customer and subscription business models is valuable and may be applied to future initiatives. “

Mercedes Collection is understood to offer three package options: Signature, $1095 a month; Reserve, $1,595 a month; and Premiere, $2,995 a month. Users will also be required to pay a one-time entry fee of $495. As of February 2020, Mercedes is still trying to increase its user base by adding new models of high-performance AMG models.

But it’s clear that Mercedes won’t leave the subscription service empty-handed. Chamberlain told Auto News that the company collects “massive amounts of data” from users, many of whom are 10 years younger on average than the company’s typical customers. He said this would help the company better target Millennial car buyers in the future.