Automotive subscriptions promised to be the next big thing in this industry, as they gave users access to multiple vehicles for a flat monthly fee.
However, they haven’t exactly been popular and a number of them have already come and gone, including Book by Cadillac. Now, the latest subscription service to get the boot is the Mercedes-Benz Collection, which launched as a pilot program a little over two years ago.
It offered residents of Philadelphia and Nashville access to an assortment of vehicles for a little over $1,000 per month.
Also Read: Mercedes Subscription Service Launches In The US For $1,095 Per Month
Over the following months, Mercedes modified and expanded the service by adding an AMG tier and by offering the program in Atlanta. However, these efforts were ultimately in vain as the service wasn’t very popular.
Speaking to Automotive News, Mercedes-Benz USA’s Adam Chamberlain said “demand was just OK.” He added, “If the demand would have been unbelievable, then it could have gone further.”
While Mercedes had hoped the subscription service would prove popular with new customers, only a “few hundred” people signed up. Given such weak demand, it’s no wonder that the subscription service will wind down this summer.
Despite this disappointing result, Mercedes said the service taught them a few very important things about online sales. The program also helped to draw in new and younger customers to the brand. As Chamberlain noted, the average Mercedes customer is 55 years old and the subscription service attracted customers who were approximately 10 years younger.