A UK-wide study conducted by YouGov and Zuora has found that 24% of Brits are likely to subscribe to car-as-a-service within the next year.
The study of 2,002 consumers showed that nearly a quarter of Brits (24%) who would forgo buying a car, are likely to subscribe to a car-as-a-service within the next year – men (27%) more confident than women (22%).
Millennials account for the majority of subscription use, with 77% of 16-24 year olds, and 85% of 25-34 year olds subscribing to at least one product and/or service. Millennials differ from the national trend, with the most popular services being VOD (49%), music (36%) and fitness (22%) applications.
It showed that 16-24 year olds are specifically interested in subscribing to connected cities services (56%), home security services (47%), and smart heating, cooling and lighting services (46%).
Additionally, 56% of 16-24-year-olds could envision subscribing to services for connected cities, while 31% are interested in connected/self-driving cars.
The rise in subscriptions can be attributed to an increase in the number of businesses across nearly all industries offering recurring services.
According to the Zuora Subscription Economy Index, this business model strategy suggests that subscription businesses in the UK grow revenue nearly six times faster than FTSE (London), CAC (Paris) and DAX (Berlin) stock indices.
Zuora’s managing director for EMEA John Phillips (pictured) said: “It’s the end of ownership as we know it. Brits are no longer seeing subscription services as a ‘nice to have’, but consider them an integral part of their everyday life.
“Driven by convenience and value, millennials are adopting subscriptions at a rapid pace, pushing companies to rethink their business model.
"It’s likely that as the UK evolves to become smarter, fully connected and more efficient, we’ll see a new generation of businesses catering to this trend.”