Electric vehicle subscription company, Steer EV, announced today it’s entering into an agreement with Enterprise Fleet Management to lease over 1,000 EVs.
Steer EV was bought out by Facedrive, a Canadian ride-sharing company, in 2020 for $3.25 million. Since then, the EV subscription market has taken off.
With this in mind, Steer EV’s new agreement with Enterprise Fleet Management expects to be a growing trend as businesses and consumers transition to cleaner, sustainable solutions.
Companies like Autonomy and Steer EV help give consumers the option to drive electric vehicles without the hassle of owning or leasing a car. According to recent data, the global vehicle subscription market was worth around $5 billion in 2021, and expects to reach over $31.7 billion by 2030.
Higher gas prices, less maintenance, and fewer costs are pushing demand for electric vehicle subscriptions.
Subscription services make it easy for users to go electric by offering a wide range of EVs to choose from. In addition, subscriptions generally offer more flexibility than leasing programs.
For example, Steer EV offers subscription services starting at $1,299/month. The basic plan allows two vehicle swaps per month, insurance coverage, routine service & maintenance, roadside assistance, EV charging resources, and more. Users can choose from several popular EV models, such as the:
For a higher monthly fee, users can enjoy unlimited vehicle swaps. To get started, all you need to do is download the Steer subscription app, select your plan and schedule your EV delivery. Then, you can manage your subscription and swap EVs directly from the app.
Steer EV’s new contract with Enterprise Fleet Management is a big step for the company’s planned US expansion.
Steer EV expands US position with new Enterprise Fleet Management deal
Steer EV sees the new deal with Enterprise Fleet Management as an ample opportunity to grow its US presence. The agreement is worth between $80 and $150 million for over 1,000 EVs.
Enterprise is the largest rental car company in the world, with around 10,000 branches in over 90 countries. On top of this, new government incentives, such as those included in the new climate bill, are leading companies and consumers to adopt EVs.
That being said, the move could be significant for Steer EV as the demand is high for electric vehicles and supply is limited. Therefore, companies looking to transition their fleets may be more inclined to use a subscription service.
Suman Pushparajah is excited about the potential of the deal, saying:
The data we have collected, including from our recent launches in Texas and British Columbia, as well as preparations for the upcoming launch in Florida, has demonstrated a growing demand for a month-to-month all-inclusive subscription service. With the help of this partnership with Enterprise Fleet Management, STEER is on track to fulfill demand and scale its fleet considerably in the months to come.
Steer EV expects its aggressive expansion with Enterprise Fleet Management to translate to organic revenue growth in 2022 and 2023.
FTC: We use income earning auto affiliate links. More.
Comments