Login to Continue Learning
The subscription model, once popular in software, is now being adopted by automotive companies. Volkswagen has joined this trend by introducing a monthly fee for full performance access on some of its ID.3 electric vehicles.
Auto Express discovered that the Volkswagen ID.3 Pro and Pro S are listed with 201bhp but can achieve 228bhp if customers pay an additional £16.50 per month, £165 annually, or a one-time fee of £649 for a lifetime subscription that transfers to a new owner if the car is resold. Volkswagen described this as an “optional power upgrade.”
The company stated, “If customers wish to have an even sportier driving experience, they now have an option to do so within the life of the vehicle, rather than committing from the outset with a higher initial purchase price.”
Volkswagen is not alone in offering tiered subscription services. European car makers like BMW, Mercedes-Benz, and Polestar also provide upgrades via monthly fees. These companies argue that subscriptions offer control, flexibility, and ongoing updates while generating ongoing cash flow and providing upselling opportunities post-purchase. They also gather valuable customer data.
The model has spread to other industries as well; gone are the days of one-time payments for apps. Subscriptions, popularized by services like Spotify, Netflix, and productivity apps in the early 2010s, have become dominant. Even a category of tools that cancel unwanted subscriptions is now available by subscription.
The collective cost of these services can add up to significant sums, leaving us paying for things we never own, subject to the whims of providers who can raise prices or remove features. We could choose not to pay and lose access, spark outrage (as BMW customers did when heated seats required monthly fees), or simply accept this new normal until some tech lord starts charging a fee for the air we breathe.
I’ll be voting with my wallet—and protesting from the comfort of my keyboard.
