Autonomy pivots EV subscription business in partnership with Deloitte
Autonomy is departing the electric vehicle subscription business — at least from what it has been doing in recent years.
Instead, Autonomy said late on Sunday that it’s launching a new SaaS business — Autonomy Data Services (ADS) — in partnership with Deloitte.
According to a news release, ADS has secured $2.5 million in new funding and completed a $32 million debt-for-equity swap, along with acquiring all subscription-related technology and intellectual property.
With the “chaos” surrounding residual values and their impact on ownership for both consumers and fleet operators. Autonomy said it is pivoting to a “renewed” focus on technology.
“With Deloitte as our partner, ADS is set to expand its market reach by leveraging Deloitte’s extensive network and expertise,” ADS founder Scott Painter said in the news release. “This partnership positions ADS at the forefront of the evolving vehicle subscription market, enabling the provision of innovative solutions without the burden of debt or residual risk.”
ADS explained its new business approach comes with no debt or residual risk. ADS said its licensing and SaaS revenue model will cater to OEMs, captive finance companies, fleet operators, rental car companies and car dealerships seeking to implement subscription offerings.
This model is already operational and generating revenue with existing clients, according to ADS.
As part of its strategic shift, ADS has acquired key assets from Shift, Canvas, UberXChange Leasing and Fair.
The company said the acquisition — valued between $10 million and $12 million — provides a solid foundation for its new business model.
The acquired intellectual property includes brand names, domain IP, compliance, legal work product for 50-state operating licensing, technology codebase, customer apps, integration mapping, system algorithms, and extensive data assets.
“The shift to a SaaS model allows ADS to leverage its technology and data to offer comprehensive subscription solutions to OEMs,” ADS executive chairman George Bauer said. “Here at ADS, we are now a bigger believer in the subscription model more than ever.”
Autonomy certainly is not unfamiliar with Deloitte, as the companies formed an agreement in November to accelerate the adoption of electric vehicles.
A 2024 Deloitte consumer study revealed that 45% of U.S. consumers are reconsidering vehicle ownership, and 28% of 18 to 34-year-olds prefer subscription services.
“This trend aligns with ADS’s strategy to lead the next wave of innovation in subscription services and digital mobility solutions,” the company said.