Cadillac Treating Book Car-Subscription Service Like A Start-Up

Cadillac was first to market with its car-subscription service: Book by Cadillac. After its initial launch, the brand has learned a lot, but it continues to operate the service like a start-up.

Melody Lee, Book by Cadillac’s global director, told Automotive News in a Monday report that the brand will continue to invest “in understanding what this market and this business really look like.” For many automakers, car-subscription services are unproven revenue channels and it’s unclear just how viable the business model is.

Cadillac and other makes must also perform a balancing act to not encroach on its retailers and leasing programs. Book by Cadillac costs $1,800 per month and includes insurance, maintenance, a 2,000-mile cap and white-glove delivery.

One of the major positive that has come from the Book service are the customers. Lee told the outlet that it’s learning a lot about customers in a very different way through the service. The average Book user is also significantly younger than any Cadillac buyer at age 41, 22 years younger than owners. The majority of Book users have never owned a Cadillac, either.

In the near future, Book plans to expand to more areas after launching in New York City in 2017. The service expanded to Dallas and Los Angeles six months later. And Cadillac has begun involving its dealerships in the Book service more. Now, the brand will reward dealerships for referring customers to the service.

“We think we can leverage the power of our 900-plus dealers to make Book even more powerful in the future,” Lee said. “We’ve just got to find the right role for them.”