{"id":573,"date":"2021-06-10T21:53:01","date_gmt":"2021-06-10T11:53:01","guid":{"rendered":"https:\/\/carsubscriptions.org\/en-au\/?p=573"},"modified":"2021-11-04T22:37:45","modified_gmt":"2021-11-04T11:37:45","slug":"interview-michael-higgins-loopit","status":"publish","type":"post","link":"https:\/\/carsubscriptions.org\/en-au\/interview-michael-higgins-loopit\/","title":{"rendered":"Interview: Michael Higgins from Loopit"},"content":{"rendered":"
\"Michael

Michael Higgins, Managing Director Loopit<\/p><\/div>\n

Michael, which problem do you want to solve? Who is your target group?<\/h3>\n

We are seeing car subscriptions explode in popularity around the world, with many new providers emerging to offer their own alternative car ownership models that provide increased flexibility and affordability. The position of Loopit is as a provider of car subscription and mobility software for the automotive industry, empowering stakeholders such as OEMs, car dealerships and emerging car subscription providers to drive their own car subscription offering.<\/p>\n

We provide “subscription-in-a-box” including the software, consulting, training and services they need to integrate subscriptions into their businesses. Loopit provides speed-to-market and scalability for new market entrants through a robust, purpose-built software solution that is able to adapt to any go-to-market strategy for our clients in a way that is efficient and scalable.<\/p>\n

This allows our clients and partners to focus on growing their subscription business, rather than spending time, effort and resources attempting to develop their own software solutions in-house. As such a rapidly growing industry – the importance of working with an experienced software partner that can deliver immediate results cannot be overstated.<\/p>\n

For what reasons should I prefer a subscription car to a leasing or rental car?<\/h3>\n

There are a few benefits to subscribing to a car over leasing. One of the biggest draw cards is that car subscription is all inclusive, with the typical costs of car insurance, registration, servicing and maintenance covered in one affordable recurring payment. There\u2019s also the flexibility to swap or return your car as your needs change, without the typical costs that come with upgrading your car.<\/p>\n

In terms of rentals, the difference is subtle but important – car rental provides temporary access to a car while car subscription provides flexible access to a car. The customer profile of a subscriber often more closely resembles someone who would otherwise buy a car, but doesn\u2019t want to make the commitment or deal with the financial burden of car ownership.<\/p>\n

How do you stand up to the competition?<\/h3>\n

Loopit\u2019s position is not that of a car subscription provider, but rather we assist stakeholders within the automotive industry to operate a car subscription programme independently by taking advantage of our robust software platform. Loopit is the technology behind consumer-facing subscription companies and dealerships.<\/p>\n

Many emerging car subscription providers that may outwardly be perceived as competitors are actually part of the Loopit network. As they say, a rising tide lifts all boats and competition is only serving to grow the market opportunity and mainstream acceptance of car subscription as an alternative to traditional car ownership.<\/p>\n

Do you plan to operate the business internationally?<\/h3>\n

Loopit has been established as a global business from the outset. We currently service clients in the UK, Germany, Australia and New Zealand, and we are capable of localising the platform to other international markets in a very short period.<\/p>\n

How is your company financed?<\/h3>\n

We are 100% Australian owned and privately funded. However, with our rate of growth and expansion plans, we will be opening a capital raise round soon.<\/p>\n

The number of car subscription providers is currently exploding. Do you expect a consolidation on the provider side?<\/h3>\n

The car subscription market is growing rapidly, and we expect most car dealerships and other stakeholders in the automotive industry to actively participate in the market over the next five years. As car subscription becomes more mainstream, rather than seeing a consolidation on the provider side, we expect car subscription to become a more prominent option to get behind the wheel of a car alongside traditional forms of car ownership like finance and leasing.<\/p>\n

Where we do expect to see a consolidation on the provider side is in the technology. The key to building a successful car subscription programme is delivering an exceptional customer experience. Consumers will demand the trust and confidence that comes from being aligned with an experienced technology provider. Much like PayPal has become the trusted name for secure online payment, we endeavour to see Loopit build upon its reputation as the trusted name for mobility billing solutions.<\/p>\n

Where will your company be in three years?<\/h3>\n

Globally, the subscription model is growing quite fast, Frost & Sullivan is forecasting that 10 per cent of all new vehicle sales in Europe and the US will be subscription-based by 2025. This is being driven by a generational change – car ownership in the traditional sense is no longer seen as a priority among the millennial demographic as they\u2019re accustomed to flexibility, rather than long-term commitments<\/p>\n

There has also been a surge in demand for subscription due to COVID-19, which we expect to continue over the next few years. Consumers will remain more wary of taking on car loans, with many of us still working from home full-time car ownership will decrease, and cash flow will be a priority – this is where flexible alternatives like subscription will benefit.<\/p>\n

Aside from cars, Loopit also services other markets including electric scooters, boats, caravans and even farm equipment. While the car industry will remain key to our future growth, we look forward to becoming the subscription technology solution for the world\u2019s future mobility needs.<\/p>\n

You can follow our journey at Loopit.co and on LinkedIn.<\/p>\n

June 9, 2021<\/em><\/p>\n

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