Rivian to Go the Subscription Route?

Rivian, the Michigan-based startup that aims to get electric pickups and SUVs into the hands of consumers starting late next year, may choose a controversial avenue to ownership.

The automaker’s CEO, RJ Scaringe, claims the automaker is seriously thinking about offering a subscription service when it begins rolling out vehicles from its Normal, Illinois assembly plant in 2020. Without a dealer network, Rivian’s plan was always to send vehicles directly to buyers, no doubt earning it the ire of dealer groups country-wide.

Speaking to private industry types at Cox Automotive’s HQ, Scaringe said he saw benefits to joining the growing list of automakers offering a range of vehicles for an all-encompassing fee.

“We talk about inflection points, and this is one that allows us to interact in different ways with the customer,” Scaringe said, as reported by Automotive News. “You may use one solution to get to and from the office during the week. But on the weekend, you may want a subscription program.”

Not counting the massive order for custom EV delivery vans earmarked for big-bucks investor Amazon, Rivian’s vehicle range will commence with two products: the R1T pickup and R1S SUV. Both vehicles will emerge with three battery pack options; the topmost affording buyers up to (or more than) 400 miles of range.

Subscription services, popularized by certain premium European brands, bundle monthly ownership costs into a single fee, but also allow subscribers to pick and choose which vehicle they drive at a given point in time. With two vehicles initially on offer, the choice afforded to Rivian fans will be small. Certainly, with no models starting below $69,000, and longer ranges requiring an outlay far greater than that, Rivian can consider itself a premium automaker, which might help the subscription idea go over easier.

Committing his company to a direct-sales model, Scaringe didn’t delve into how his company’s relationship with Cox, Ford, and Amazon might impact how vehicles get to consumers.

“If you look at the type of shareholders we’ve brought in, Amazon, Ford and Cox are all very strategic in supporting us in creating products but also in creating really sticking and powerful customer experiences,” he said.

“Cox is really an impressive company in its ability to deliver on robust customer processes, whether that’s service or thinking about the future of charging. There are a lot of aspects to the relationship that we’re excited about.”

[Image: Rivian]