Autonomy Adds Gas Vehicles as It Revives Its Car Subscription Business

Autonomy is expanding its vehicle subscription business beyond electric cars, adding gasoline-powered Ford models to its fleet as the California startup tries to revive a strategy that nearly collapsed during the EV price war.

The move comes four years after Autonomy pledged to acquire 23,000 electric vehicles from 17 automakers, including Tesla. Its fleet ultimately grew to just over 1,000 vehicles before falling EV prices sharply reduced their value.

Autonomy founder Scott Painter, who also created TrueCar, helped keep the company operating as its original expansion plans unravelled. Tesla’s aggressive price cuts contributed to Autonomy’s financial difficulties, with the startup’s fleet losing roughly one-third of its value.

Ford gas vehicles join the subscription fleet

Autonomy said Wednesday that it will offer internal combustion engine vehicles for the first time. The initial lineup includes Ford models such as the Mustang, Ranger, F-150, Bronco Sport, Escape and Explorer.

The vehicles are being sourced through Los Angeles-based Galpin Motors and will initially be offered to customers in California. Autonomy also operates in Arizona, Florida, Texas, New York, North Carolina and Washington, where it plans to work with additional dealer partners.

“If you’re going to be successful in anything, you’ve got to give the customer what the customer wants,” CEO Fred Weick said.

Autonomy charges customers an upfront fee and a fixed monthly subscription based on the vehicle. Its current one-time fee for EVs is $1,000, and customers can cancel after the first month.

Autonomy targets customers seeking flexible access

Weick, who spent more than 20 years at Mercedes-Benz, said rising vehicle prices have made traditional car ownership harder for some consumers, particularly people with low credit scores or limited access to credit.

The company is targeting four groups with its gasoline-vehicle expansion: university students, military families, foreign workers and customers seeking what Weick described as a “company car” experience.

“The crux of the interest is easy and quick access to mobility without all the headaches that come with the old-school method of buying vehicles, Weick said.

EV ambitions remain much smaller than planned

Autonomy has not abandoned electric vehicles. Weick said the company still sees demand for EVs, particularly in California, but its current electric fleet numbers are only a little more than 500 vehicles.

That is far below the 23,000 vehicles envisioned in 2022. Autonomy was not alone in struggling with large EV fleet commitments. Hertz also scaled back its electric-car strategy after previously announcing plans to buy as many as 100,000 Teslas.

Autonomy’s earlier difficulties were closely tied to the rapid decline in Tesla vehicle prices, which eroded the value of its existing EV fleet. Adding gasoline-powered vehicles gives the company a broader lineup as it makes another attempt to establish car subscriptions as an alternative to traditional vehicle ownership.