The on-demand business model in the automotive sector is revolutionizing the way customers subscribe to a particular service offered by original equipment manufacturers (OEMs). The model allows customers to activate or deactivate a service according to their regional (or custom) requirement.
• The subscription offered by automakers can be on a monthly, yearly, hourly, per kilometer basis, or a one-time payment.
• This business model enables OEMs to monetize and increase their revenue from the connected services that they offer.
• Connectivity is already prevalent in commercial vehicles, with fleets opting for features that improve vehicle management and overall productivity. These services are primarily offered on a subscription basis, which includes a standard or customized package option, depending on feet requirements.
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