CNBC Report: Porche's Subscription Model is Working, Attracting Young Drivers
March, 29, 2018—According to a recent report from CNBC, Porsche Passport, the luxury car brand’s subscription service that began in Atlanta last November, may be providing a boost to the company’s growing sales, and is attracting younger than expected drivers.
Porsche Passport, which provides subscribers with access to Porsche vehicles via a mobile app, is currently only available in Atlanta.
The month-to-month subscription gives customers two price options: A flat fee of $2,000 or $3,000. The subscription includes a $500 activation fee and credit check, and covers vehicle tax and registration, insurance, unlimited mileage and maintenance. Smartphone users can download the app and begin using the same day or schedule future rides.
Zellmer said the majority of the subscription program's customers choose the more expensive tier, giving them access to 22 different models of high-performance sports cars and SUVs that can be "flipped whenever you want." And about 50 percent of subscribers, he said, are new to Porsche.
While U.S. new vehicle sales fell 2 percent in 2017, Porsche's sales in the U.S. had its eighth consecutive year of growth. The company's overall value increased nearly 42 percent, as market cap shot up to $24.457 billion this month, compared with $17.26 billion last March.