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The Washington Post reports that "Cadillac has launched a program that it says is a “first-of-its-kind luxury vehicle subscription service" - a kind of Netflix for cars.

Here's how the Post describes it:

"For starters, customers are no longer customers. They’re now 'members.' A member pays a flat monthly fee of $1,500 (there’s also a one-time $500 initiation and processing fee).  For all this, the member gets unlimited access to several Cadillacs – from the V Series, XT5 and CT6 to an Escalade – for as long and whenever wanted. These same cars would cost between $60,000 and $100,00 if purchased outright ... The car is home delivered and the fee includes registration, taxes, insurance and maintenance costs. There’s no mileage limit and if you want out of the program you just have to give 30 days’ notice."

The program will begin being tested next month in the New York metropolitan area.

The Post suggests that what really is important about this test is "how traditional companies – a car manufacturer for example – are recognizing the need to build a community of members and create a committed long-term revenue stream from them in order to increase the company’s value and stabilize cash flow. The recurring revenue model which is based on a continuous service has proven successful for many of the world’s most profitable companies…both small and large."
KC's View:
My first response to this story is that the business model doesn't seem very workable to me. My second response is to remember the words of Jean-Luc Picard: "Everything is impossible, until it is not."

And the Post is right - the most important thing about what Cadillac is doing is that it is trying to disrupt the current world order.