HOLDEN has become the first car company in Australia to start a subscription service, which is set to launch this year as an alternative to the existing short-term car-sharing private and commercial operations under the Maven umbrella.

The subscription service, called long-term rental by Holden’s Maven division, was quietly released last October to selected customers.

The service, which has been adopted in Australia before the US, will now be rolled out nationally.

Maven Australia general manager John Kett said the subscription service evolved by word of mouth and was tailored to suit people who want car-share arrangements outside the existing car-share program. It complements the existing Maven car-share for private customers and the Maven Gig for Uber and commercial rideshare operators.

“We’re getting significant growth in rideshare, we’re just about to expand in car-share and we’re putting a significant amount of resources into technology including the long-term car-share product,” he told GoAutoNews Premium.

“The long-term rental is done in Australia and not in the US. It’s for people wanting car-share outside the normal car-share program.”

Mr Kett said Holden dealers are “strong partners”.

“Maven is involved with the dealers in all states,” he said. “They supply initial pre-delivery, maintenance and servicing of the cars and at Maven, we have the relationship from the administration side.

“We are also seeing a very good rub-off from users of Maven to becoming customers buying a Holden.”

Maven now operates in all states. Mr Kett said the membership base of the Maven car-share for private customers was now 3200 members, “which is three times what we had in 2017”.

“We have also doubled our fleet and now have 2000 Holdens across Australia in rideshare,” he said.

“We have also seen that our members are staying in the car longer – around an extra four to five weeks – so that’s been a positive sign for us.

“In 2018, we had around 6500 appointments – which means a car being returned or exchanged or collected. This is also three times more than in 2017. We are very much progressing and being recognised by customers.”

Maven has introduced an app for its rideshare customers that makes getting into a car far easier and quicker than before. It is specifically suited to people wanting a car by the hour or day.

“We have some work to do to bring that to the platform, but by the end of the year we’ll add that to other initiatives we have planned,” Mr Kett said.

GM International strategy and urban mobility director Anthony Riemann said the long-term or subscription service allows vehicles to be rented month-by-month at a weekly rate and inclusive of distance and other costs.

“People may want that change of vehicle flexibility and may want to give the car back on short notice or change the vehicles for another model,” he said.

“This is starting to take off with individuals who want a flexible vehicle choice but has also attracted small and medium businesses for the same reason. We’re now talking about this more publicly.

“This car-sharing side – we’re only a few months in – is a learning process and is being refined to reach the right customers.

“A month-by-month rental can be more advantageous to meet business needs and help by not having a long-term commitment to a vehicle.”

Mr Riemann said people have to judge if they want this subscription service and balance out the advantages of the flexibility and the one-payment system against committing to a three-year lease.

“The subscription model actually does appeal to a large group of motorists,” he said.

“We started through the Gig program because some drivers needed rideshare but still wanted to have a flexible car ownership plan. So we thought we’d extend it to these people who were advocates of the brand.

“From that, we saw the opportunities across the broader market and so we researched and targeted people with digital marketing.

“We are finding now that it is on people’s radar and that they do find it has advantages.

“We’re still evolving and finding ways to reach groups who want this type of car use.

Word of mouth is very important in getting the message across.”

Mr Riemann said the rideshare products in Australia under Maven leveraged GM’s technology developed in the US.

“All our cars are keyless and the entry and starting is done via the mobile phone,” he said.

“So it’s all done without needing a key. We started that around September and it’s been improved as we go along.”

Maven started in Australia in 2016 with the initial focus on car-sharing in urban areas. It then expanded to Maven Gig, the rental program for delivery drivers and rideshare businesses such as Uber.

Car-sharing and building fleets in Victoria were open to the public after being trialled for two years by Holden employees.

“We are looking at expanding the car-share side in the very near future,” Mr Riemann said.

“We will put vehicles in key locations, but they will only be the top-spec models.”

Maven has introduced Equinox to the fleet and Trailblazer, Holden’s seven-seat large SUV, in some states.

“We are always looking to supplement the fleet. We already have a choice including top-spec Commodores and small-SUV Trax, utes and mid-size SUVs. So there’s a good range,” Mr Riemann said.

By Neil Dowling