Enterprise Holdings, the parent company of car rental companies Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car, announced on Wednesday plans to launch a car subscription service. It’s the car rental giant’s first foray into the buzzy Mobility-as-a-Service space, and could possibly disrupt car companies’ own efforts to offer alternatives to car ownership.
Enterprise says customers pay a monthly fee to chose from six different vehicle classes — full-size and premium sedans, small and mid-sized SUVs, and small and medium-sized trucks — representing more than 20 makes and models. The company did not disclose the amount of the monthly fee, and a spokesperson did not immediately respond to an email.
Customers will be able to swap out vehicles up to four times per month. Other expenses, like physical damage and liability coverage, maintenance, registration, roadside assistance, and Sirius radio, are included in the monthly fee. Enterprise says it expects to launch the program in the next few weeks.
Car companies have been experimenting with Netflix-style subscription services for months as they seek to appeal directly to millennial consumers who are less inclined than previous generations to own or lease their own vehicle. Those efforts have run into interference from dealers, who see subscriptions as undercutting their business model.
Earlier this year, a trade group representing California’s car and truck dealerships filed a petition to stop Volvo from offering cars on a subscription model. Late last year, Cadillac resurrected its fledgling car subscription service after putting it on hold amid a fight with its dealers.
Mercedes-Benz, BMW, Audi, Jaguar, and Porsche all have slightly different versions of the idea, too. Each automaker has seen varying degrees of success, and they’re also piloting them in different locations, at different pricing tiers, and with different volumes.