Mercedes Launches Vehicle Subscription Service

June 6, 2018—Mercedes-Benz launched a subscription service on Tuesday, providing luxury vehicles to drivers.

A collaboration between Mercedes-Benz USA, Mercedes-Benz Financial Services USA and Mercedes-Benz dealers, Mercedes-Benz Collection allows subscribers to switch between different types of vehicles depending on their needs or lifestyle. The service is available as a pilot in two cities: Nashville, Tenn., and Philadelphia. 

A subscription service allows customers the ability to drive a vehicle for a monthly fee and also allows customers to switch among available vehicles. The monthly fee includes maintenance, and insurance, as well as pickup and delivery.

This follows in the footsteps of Volvo, which announced a similar subscription package in December 2017.

This is notable for collision repair because, as Jerry Albright noted in a recent story, if insurance companies want to remain relevant, they’ll need to partner with OEMs as vehicles become more and more connected.

In fact, CCC Information Services is pushing for that OEM-insurance partnership with CCC Drive, which is a telematics platform that allows a vehicle to automatically notify an insurer when a crash occurs

There are three tiers in the program—Signature, Reserve and Premier—with two offered in each city and prices ranging from $1,095 to $2,995 per month (depending on city/level). Subscribers pay a one-time activation fee of $495 and may then choose from all the vehicle body styles offered in that subscription tier, including Mercedes-Benz SUVs, sedans, coupes, cabriolets, roadsters and wagon models. Each tier also allows access to the company's popular high-performance Mercedes-AMG models.

The Mercedes-Benz Collection works through a combination of the new Mercedes-Benz Collection app and a local concierge. Once subscribed, customers initiate vehicle exchanges, concierge communication and other actions via the app. Concierge staff then ensure the delivery is consistent with the details and preferences in the customer's profile. Subscribers can access any type of vehicle within their tier with no mileage limitations. The monthly subscription fee for the tier also includes insurance, 24/7 roadside assistance and vehicle maintenance.

How It Works:

• Those interested can download the Mercedes-Benz Collection app via the Apple App Store or Google Play Store and hit "Sign up"
• Users then create an account (provide a credit card, select a plan and provide a picture of the driver's license associated with the account).
• Information is verified, and driving and credit history are checked (subscriber may be contacted with any questions). In most cases, the application is processed and the subscriber is contacted within one business day.
• Subscriber is contacted to find out his or her vehicle needs and desired delivery time and location. After the first delivery, subscribers put their requests in via the app. Requests received by noon can typically be fulfilled the next day.
• Concierge delivers the new vehicle washed, with a full tank of gas and takes away the previous vehicle.