A UK-based EV subscription service startup, Onto has raised $60 million in a Series C round to help secure its position as the UK’s leading car subscription service and begin its expansion into Europe.
In 2017, just as EVs were beginning to gain traction as a practical alternative to conventional combustion engine vehicles, Onto was established. But at the time, interest in electric cars was still rather specialized due to their high price and scarcity of charging stations. The Covid-19 pandemic also had an impact; “travel was highly limited, even banned for months at a period,” stated Jolly. However, as charging stations became more widespread, they had an adverse effect. However, there were still difficulties long after the pandemic was over.
According to Jolly, “the UK is regrettably going through a cost-of-living crisis.” While cost increases to reduce demand, there are also issues with the supply side, and “the entire industry confronts continual challenges owing to global supply chain issues and chip shortages,” she adds.
Despite this, Onto has had substantial growth, particularly when the pandemic was over as more people were allowed to leave their houses and go elsewhere. The service has grown by 500% in the last 12 months.
According to Jolly, a large portion of Onto’s development may be attributed to its offer, which provides consumers the chance to try out an electric vehicle. He states, “Subscriptions start at £489 for the 2022 Renault Zoe S.” Additionally, the all-inclusive model makes it simple to drive an electric vehicle; the subscription includes 750 miles per month, insurance, and free charging at more than 12,500 charges points. “The one-month flexibility helps consumers move across to electric without being locked into a long-term contract,” says the company.
Wian Pieterse, general director of Legal & General’s Fintech division, also praised the appeal of Onto’s business model. To accelerate the switch to electric vehicles, he stated, “Onto is an ambitious company with a competent management team.” We anticipate a rise in demand for subscription-based business models that satisfy the needs of people who don’t want to spend their hard-earned money on a car or take out a loan for it, as well as those who want to move toward a more sustainable way of life.
The concept certainly finds a sweet spot, assisting individuals in controlling expenses and transitioning to more environmentally friendly driving practices. The UK’s cost-of-living problem has been characterized by rapidly rising fuel and energy prices, while the UK’s record temperatures have brought attention to the global climate change crisis. The total cost of ownership benefit of an EV membership is “getting even more apparent with the present cost of gasoline and energy,” Jolly informed us.
They intend to expand into Germany after establishing Onto as the top vehicle subscription business in the UK.
The rising cost of energy is a global phenomenon, and the climate disaster is a major concern across Europe, therefore Germany faces many of the same issues as the UK. Onto thinks that German company owners and drivers would find its model to be just as compelling as it has been in the UK.
Onto, however, is concentrated on providing a service that benefits customers while also being profitable. It is more crucial than ever to have a path to profitability and strong cash flows, claims Jolly. Despite what seemed like never-ending obstacles in recent years, Onto’s success to date has been a result of its laser-like focus.
Additionally, it is a service that meets consumer needs. According to a recent EY Consumer Index study, nearly half of the car buyers wished to purchase an electric car as their next car. To make switching to an electric vehicle hassle-free and simple to try out, even for a month, read on. They intend to utilize that simplicity to seize the subscription business in the largest auto-producing nation in Europe.
According to Onto’s data, 90% of clients favor the all-inclusive model they provide. With Onto, Jolly intends to help people finally join the electric vehicle revolution. “Our upfront pricing and flexible service make it simple for consumers who are considering the move to electric to take the plunge,” the company says of its transparent pricing and flexible service.
Image Credit: Onto
