Car subscriptions hamper car wash business

The range of car subscriptions is growing. Customers pay a fixed monthly amount for a car with a short minimum contract period of only a few months. The price includes all costs such as maintenance, inspection, insurance and taxes. The question arises whether such drivers will still value a carwash in the future.

The carwash industry emphasises that the carwash not only has a visual effect. Road safety and the preservation of the vehicle’s value should also be taken into consideration when customers consider visiting the carwash less frequently.

Car subscriptions change the market

If the trend of car subscriptions continues to grow, this could have a lasting effect on the mobility industry. Especially in big cities, where the wide range of mobility options reduces the need for a car. If car subscriptions increase the offer of not having to buy and maintain one’s own car, some services will move out of focus. For customers of car subscriptions, issues of vehicle care and maintenance are no longer relevant because these aspects are either included in the subscription and are now the responsibility of the subscriber, or because they no longer fall within the period of use in the case of regularly changing vehicles.

Vehicle washing could be particularly affected by this effect. Subscription customers would only wash their vehicle if it is heavily soiled or if road safety is obviously impaired. Many car washes that are currently part of the routine of a week or a month would then be omitted. It remains to be seen whether the cooperation with subscription users will compensate for this wash turnover.

Author: Steven Don

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