Kyte, an on-demand rental company, announced that it is acquiring a fleet of Tesla Model 3 vehicles to offer a new monthly subscription service across the US starting at $995.
The concept of “subscribing” to a car instead of outright buying it or leasing it has gained traction in recent years. Several automakers and third-party companies have started such services, which have the main advantage of being simpler and requiring less commitment than leases – Tesla vehicles are starting to become a popular option for those services.
Earlier this year, Autonomy, a new startup, announced that it purchased a fleet of 100 Model 3 vehicles to offer a subscription service, and it aims to grow the fleet to 10,000 Tesla vehicles by the end of the year.
Now Kyte, better known as an on-demand car rental service, announced that it is jumping into the car subscription business also with a fleet of Tesla Model 3 vehicles:
This rollout of Kyte’s latest offering is the next milestone in a series of impressive successes by the California-based company and will eventually be available in all of Kyte’s current 14 markets. As part of this new subscription service, Tesla Model 3s will be available and will include maintenance, insurance, registration, and roadside assistance. For those looking for the experience of a Tesla, without the hassles of ownership and the long term commitment, Kyte’s offering will allow customers to reap all the benefits while avoiding the challenges – no maintenance and no lock-in. What’s more, for those that come to love the performance of their Tesla, Kyte provides the option to extend subscriptions flexibly at any time.
The company didn’t reveal how many Tesla vehicles it secured for the service, but it recently secured $200 million asset-backed credit financing to expand its offering.
The service is all-inclusive with registration, insurance, and more:
They are using the Tesla Model 3 Long Range AWD, and the website specifically mentions the Pearl White color, which is the base color.
It starts at $995 per month with a 12-month commitment, but you can subscribe to the car for just three months:
In comparison, Autonomy starts at $490 per month, but it requires a steep $4,900 “start fee.” The company revised those prices down just earlier this week, as Kyte announced its own service.
Erik Zahnlecker, Director of Product at Kyte, commented on the announcement:
Being able to expand our fleet and amplify EV adoption is mission-critical. We don’t want to only be innovators in how we give people access to cars, but we want to be a catalyst for the rapid change going on in the transportation industry as a whole. This rollout is pivotal to our growth strategy and core to our electrified, autonomous, and shared vision.
The company is going to start deliveries of the Model 3 vehicles on April 15.
FTC: We use income earning auto affiliate links. More.