Car manufacturer Cadillac is set to launch a new service next month that could potentially disrupt the auto insurance industry.
Book by Cadillac is a “luxury vehicle subscription service” that works similarly to on-demand services such as Netflix and Spotify by allowing members access to popular Cadillac vehicles without purchase. Members only have to pay a flat monthly fee of $1,500 to have access to some of the manufacturer’s cars. They can then have the Cadillac automobile of their choice delivered to a specified time and location via app.
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“BOOK by Cadillac is an innovative new option targeted at a growing class of luxury drivers searching for access to various cars over time, dependent on their individual needs, coupled with a hassle-free white-glove exchange,” said Cadillac chief marketing officer Uwe Ellinghaus in a statement.
BOOK by Cadillac is set to launch first in the New York metro area, with plans to expand in other markets.
Cadillac noted that members need not purchase their own auto insurance, since coverage will come with membership. Maintenance costs, taxes, and detailing will also be covered by the monthly subscription fee.
The service works in a similar manner to a car rental, although the manufacturer insists that it is trying to fill in a specific niche.
“There’s a little bit of a white space between traditional [car] ownership—which is leasing, financing, purchasing—and on the other side you have the more efficient, but a little bit less personalized services of car sharing, ride-sharing, and rental,” Cadillac director of brand strategy and planning Melody Lee told
Yahoo Finance. “We think right in the middle there’s a place for someone who might want to have a car always in his or her possession, a luxury vehicle, with the flexibility of a month-to-month commitment.”
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