Latest news with #DanielRoss
Winnipeg Free Press
5 days ago
- Automotive
- Winnipeg Free Press
Automakers are going big on in-car subscriptions. Are customers buying it?
Consumers don't want to pay for it. Automakers are still pushing hard. In-car subscriptions have become a growing obsession for many automakers which see strong revenue potential from recurring customer payments. But it appears that initial attempts to paywall built-in hardware and software features, such as cameras, sensors or navigation perks, haven't been too successful, with few drivers willing to take on yet another monthly bill. That has brought automakers to their next challenge: convincing customers to subscribe. An S&P Global Mobility survey this month found the number of respondents who were willing to pay for connected services in their vehicle dropped to 68 per cent this year, compared with 86 per cent in 2024. 'Subscription-based services (navigation, Wi-Fi, etc.) are increasingly being met with resistance from price-sensitive consumers who may not see the value in paying recurring fees for features they do not frequently use,' the report said. Drivers now have a range of options to subscribe to: semi-autonomous driving, roadside assistance, in-vehicle apps, stolen vehicle assistance and access to Wi-Fi — all at different price tiers. However, steep subscription costs on top of sticker prices of new vehicles remain one of the biggest barriers for many consumers. To get past that, some automakers are offering temporary complementary access to connective services in hopes of gaining loyal customers. Ford Motor Co.'s semi-autonomous driving feature costs between $650 and $900 per year after a 90-day free trial, for example. General Motors Co.'s OnStar subscription can be as high as $39.99 a month after a free trial, according to its website. Automakers which are known for their affordable prices have also joined the race for subscription-based connected services. Kia Corp., for example, has a three-tier subscription offering for owners following a three-year free trial period, which offers services such as a charging station locator, digital key access via smartphone and roadside emergency services. The subscription model is in its evolution phase, said Stephanie Brinley, associate director of autointelligence at S&P Global Mobility. 'We're trying to figure out what consumers are willing to pay for, how much they're willing to, (and) how they want it bundled,' she said. Despite the initial resistance, automakers haven't given up yet. Instead, they're rolling out brand new technology and features in the hopes of enticing drivers to pay for subscriptions. 'They're pivoting to that new tech,' said Daniel Ross, senior manager of industry insights with Canadian Black Book. 'It's more on what's new and what they've never had before.' Ross said as newer technology comes out, there will be more opportunities for automakers to release new generations of cars with updated software. And that's one of the pitches for customers to subscribe, he added. 'If you want that type of technology that's advanced, that's the newest age, that's something you can tell your friends about, this is the way you pay for it,' Ross said. Brinley said automakers are building a road map to help scale this in-car technology and these features to make it more affordable for consumers in the long run — all while keeping personalization at its core. 'Once you have the platform and the service developed, the margin is really high,' Brinley said. 'The fact that it's connected is not really the element that consumers get excited about,' she said. 'It's what does that connectivity do for you as an owner?' Some customers may find value in GM's OnStar safety and security package that alerts for help during a crash, while others may subscribe to Ford's self-driving feature for a month-long road trip. 'The appeal of a feature is that it makes driving easier,' she said. Brinley said automakers have started to talk about their revenue expectations from subscription-based services more concretely. That 'means they're making progress,' she said. On recent earnings calls, GM projected revenue from its hands-free feature, Super Cruise, will be more than $200 million in 2025 and is expected to more than double in 2026. Meanwhile, Ford said the number of its vehicles equipped with the hands-free driving feature, BlueCruise, have more than doubled in the last year to just under 700,000 units. 'You can see our relationship with our customers no longer ends the point of sale or financing. We're starting to build lasting relationships and creating new avenues for reoccurring growth at Ford,' CEO Jim Farley told analysts during its fourth-quarter earnings call. Ross said automakers are banking on the trickle-down effect of the connected services subscription. Often, features first introduced to high-end customers gradually filter their way down to mainstream customers, who are looking for affordable and budget-conscious options, he explained. Monday Mornings The latest local business news and a lookahead to the coming week. Brinley said the subscription model is still in its early stages. As it progresses, so will consumer expectations. 'If you have a car that has some of these features and then you go to buy the next car, you think that it just should be there,' Brinley said. As consumers get more used to connectivity, their expectation of what comes with a vehicle and what they're going to pay will also evolve, she said. 'There's probably going to be a lot of flexibility over time in how people choose to consume that,' Brinley said. This report by The Canadian Press was first published July 25, 2025.
Hamilton Spectator
5 days ago
- Automotive
- Hamilton Spectator
Automakers are going big on in-car subscriptions. Are customers buying it?
Consumers don't want to pay for it. Automakers are still pushing hard. In-car subscriptions have become a growing obsession for many automakers which see strong revenue potential from recurring customer payments. But it appears that initial attempts to paywall built-in hardware and software features, such as cameras, sensors or navigation perks, haven't been too successful, with few drivers willing to take on yet another monthly bill. That has brought automakers to their next challenge: convincing customers to subscribe. An S&P Global Mobility survey this month found the number of respondents who were willing to pay for connected services in their vehicle dropped to 68 per cent this year, compared with 86 per cent in 2024. 'Subscription-based services (navigation, Wi-Fi, etc.) are increasingly being met with resistance from price-sensitive consumers who may not see the value in paying recurring fees for features they do not frequently use,' the report said. Drivers now have a range of options to subscribe to: semi-autonomous driving, roadside assistance, in-vehicle apps, stolen vehicle assistance and access to Wi-Fi — all at different price tiers. However, steep subscription costs on top of sticker prices of new vehicles remain one of the biggest barriers for many consumers. To get past that, some automakers are offering temporary complementary access to connective services in hopes of gaining loyal customers. Ford Motor Co.'s semi-autonomous driving feature costs between $650 and $900 per year after a 90-day free trial, for example. General Motors Co.'s OnStar subscription can be as high as $39.99 a month after a free trial, according to its website. Automakers which are known for their affordable prices have also joined the race for subscription-based connected services. Kia Corp., for example, has a three-tier subscription offering for owners following a three-year free trial period, which offers services such as a charging station locator, digital key access via smartphone and roadside emergency services. The subscription model is in its evolution phase, said Stephanie Brinley, associate director of autointelligence at S&P Global Mobility. 'We're trying to figure out what consumers are willing to pay for, how much they're willing to, (and) how they want it bundled,' she said. Despite the initial resistance, automakers haven't given up yet. Instead, they're rolling out brand new technology and features in the hopes of enticing drivers to pay for subscriptions. 'They're pivoting to that new tech,' said Daniel Ross, senior manager of industry insights with Canadian Black Book. 'It's more on what's new and what they've never had before.' Ross said as newer technology comes out, there will be more opportunities for automakers to release new generations of cars with updated software. And that's one of the pitches for customers to subscribe, he added. 'If you want that type of technology that's advanced, that's the newest age, that's something you can tell your friends about, this is the way you pay for it,' Ross said. Brinley said automakers are building a road map to help scale this in-car technology and these features to make it more affordable for consumers in the long run — all while keeping personalization at its core. 'Once you have the platform and the service developed, the margin is really high,' Brinley said. 'The fact that it's connected is not really the element that consumers get excited about,' she said. 'It's what does that connectivity do for you as an owner?' Some customers may find value in GM's OnStar safety and security package that alerts for help during a crash, while others may subscribe to Ford's self-driving feature for a month-long road trip. 'The appeal of a feature is that it makes driving easier,' she said. Brinley said automakers have started to talk about their revenue expectations from subscription-based services more concretely. That 'means they're making progress,' she said. On recent earnings calls, GM projected revenue from its hands-free feature, Super Cruise, will be more than $200 million in 2025 and is expected to more than double in 2026. Meanwhile, Ford said the number of its vehicles equipped with the hands-free driving feature, BlueCruise, have more than doubled in the last year to just under 700,000 units. 'You can see our relationship with our customers no longer ends the point of sale or financing. We're starting to build lasting relationships and creating new avenues for reoccurring growth at Ford,' CEO Jim Farley told analysts during its fourth-quarter earnings call. Ross said automakers are banking on the trickle-down effect of the connected services subscription. Often, features first introduced to high-end customers gradually filter their way down to mainstream customers, who are looking for affordable and budget-conscious options, he explained. Brinley said the subscription model is still in its early stages. As it progresses, so will consumer expectations. 'If you have a car that has some of these features and then you go to buy the next car, you think that it just should be there,' Brinley said. As consumers get more used to connectivity, their expectation of what comes with a vehicle and what they're going to pay will also evolve, she said. 'There's probably going to be a lot of flexibility over time in how people choose to consume that,' Brinley said. This report by The Canadian Press was first published July 25, 2025.
Scottish Sun
28-04-2025
- Scottish Sun
Inside world's shortest flight as 53-second Scots journey is still popular today
SHORT HAUL Inside world's shortest flight as 53-second Scots journey is still popular today Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SCOTLAND is home to the world's shortest commercial flight - and it only takes about a minute to reach your final destination. Running between the Orkney islands of Westray and Papa Westray, this flight serves as a crucial link between the two. Sign up for Scottish Sun newsletter Sign up 1 The speedy flight operates daily, with fares starting as low as £8 Credit: Alamy The entire journey lasts a total of 90 seconds from takeoff to landing, with just 53 seconds spent in the air. Operated by Loganair and Flybe, the Britten-Norman BN2B-26 Islander aircraft accommodates only ten passengers on the 1.7-mile route. The rapid flight operates daily, with fares starting as low as £8. For residents of both islands, there is no more affordable or convenient alternative. While a ferry does operate between Westray and Papa Westray, it takes significantly longer, with a journey time of 25 minutes. There is no bridge to connect the two islands, so you can't walk or drive either. Having been in operation since 1967, the aircraft celebrated its one millionth passenger milestone in 2016. With a record flight time of just 47 seconds, this route has been recognised as the shortest scheduled passenger flight by the Guinness World Records. Passengers aren't required to arrive at the airport two hours in advance, as is standard for most flights. Instead, it's recommended to arrive just ten minutes prior. I grew up on a tiny island in Scotland - it's home to the shortest flight in the world & Billy Connolly ran around naked- As for hand luggage, even small carry-ons must be placed in the cargo compartment. The journey is primarily used by teachers and students visiting archaeological sites but is also utilised by health professionals who provide care to patients on both islands. According to The Points Guy's Daniel Ross, the sea route is aboard a "fisherman-like boat." He said: "The boat rocked so violently from side to side that I was sure we were going to capsize. Spending 20 minutes on that boat on a 'calm day' was enough to make me never want to set foot on another boat again."
Scottish Sun
28-04-2025
- Scottish Sun
The world's shortest flight is less than two miles and takes just 53 seconds… and it's in the UK
You can enjoy stunning coastal views on the short journey SHORTEST HAUL The world's shortest flight is less than two miles and takes just 53 seconds… and it's in the UK Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE shortest scheduled passenger flight in the world takes place between two Scottish islands. From take off to landing, this entire journey takes just 90 seconds. Sign up for Scottish Sun newsletter Sign up 6 Residents and visitors of two Orkney Islands off the coast of Scotland can experience the world's shortest passenger flight Credit: Alamy 6 Loganair and Flybe operate the 90-seconf route between Westray and Papa Westray in the Orkney Islands Credit: Alamy Connecting Westray and Papa Westray in the Orkney Islands of Scotland, this unique route has proved the most efficient for residents and tourists alike. From take off to landing, the flight covers a total of 1.7 miles, and only spends 53 seconds in the air. The speedy flights run every day and are less frivolous than they might seem. For the residents of the two isles, there is no cheaper or easier alternative available. A ferry making the same journey between the two islands takes 25 minutes. Despite their close proximity no bridges exist to connect the two islands. And since the entire population of Papa Westray clocks in at just 90 people, it's unlikely any funding will go towards such a project. The flight journey is mainly used by teachers and students studying archeological sites. However, health professionals are also known to frequent the service, attending to patients on both islands. The plane itself is a Britten-Norman BN2B-26 Islander is operated by Operated by Flybe or Loganair. The European city with cheap UK flights, famous lagoon spas and summers where the sun never sets This aircraft is small, with just eight seats, along with the pilot and co-pilot chairs. With a record time of just 47 seconds on days where the wind cooperates, the route has been measured as the shortest scheduled passenger flight by the Guinness World Records. It was first flown in 1967 and welcomed the one millionth passenger in 2016. A pilot from one of the islands revealed in a YouTube video that despite flying the route around 5,000 times, he has only accumulated approximately 50 hours in the air. And while the flight time may seem laughable, the alternative is not an ideal option. 6 The 1.7 mile journey is 90 seconds in total, with just 53 of those airborne According to The Points Guy's Daniel Ross, the sea route is on a "fisherman-like boat". "The boat rocked so violently from side to side I was sure we were going to capsize," he explained. "Spending 20 minutes on that boat on a 'calm day' was enough to make me never want to set foot on another boat again." To try the flight out for yourself, however, is a bit more difficult of a venture. 6 The aircraft includes eight passenger seats and a pilot and co-pilot seat, with all baggage stored in a cargo hold due to lack of cabin space Credit: Alamy The get to Papa Westray from London, you will have to make your way to Aberdeen, and then on to Kirkwall, and finally from Kirkwall to Westray. But at least you don't need to arrive at the airport too far in advance, with the recommended time being just 10 minutes before departure. And don't expect to take on your hand luggage, as even small carry on bags are put into the cargo compartment due to the lack of space. Flights between the two islands currently start from just £19. 6 The islands include lots of scenic areas includig the bay and village of Pierowall on Westray Credit: Alamy
The Sun
28-04-2025
- The Sun
The world's shortest flight is less than two miles and takes just 53 seconds… and it's in the UK
THE shortest scheduled passenger flight in the world takes place between two Scottish islands. From take off to landing, this entire journey takes just 90 seconds. 6 6 Connecting Westray and Papa Westray in the Orkney Islands of Scotland, this unique route has proved the most efficient for residents and tourists alike. From take off to landing, the flight covers a total of 1.7 miles, and only spends 53 seconds in the air. The speedy flights run every day and are less frivolous than they might seem. For the residents of the two isles, there is no cheaper or easier alternative available. A ferry making the same journey between the two islands takes 25 minutes. Despite their close proximity no bridges exist to connect the two islands. And since the entire population of Papa Westray clocks in at just 90 people, it's unlikely any funding will go towards such a project. The flight journey is mainly used by teachers and students studying archeological sites. However, health professionals are also known to frequent the service, attending to patients on both islands. The plane itself is a Britten-Norman BN2B-26 Islander is operated by Operated by Flybe or Loganair. The European city with cheap UK flights, famous lagoon spas and summers where the sun never sets This aircraft is small, with just eight seats, along with the pilot and co-pilot chairs. With a record time of just 47 seconds on days where the wind cooperates, the route has been measured as the shortest scheduled passenger flight by the Guinness World Records. It was first flown in 1967 and welcomed the one millionth passenger in 2016. A pilot from one of the islands revealed in a YouTube video that despite flying the route around 5,000 times, he has only accumulated approximately 50 hours in the air. And while the flight time may seem laughable, the alternative is not an ideal option. 6 According to The Points Guy's Daniel Ross, the sea route is on a "fisherman-like boat". "The boat rocked so violently from side to side I was sure we were going to capsize," he explained. "Spending 20 minutes on that boat on a 'calm day' was enough to make me never want to set foot on another boat again." To try the flight out for yourself, however, is a bit more difficult of a venture. 6 The get to Papa Westray from London, you will have to make your way to Aberdeen, and then on to Kirkwall, and finally from Kirkwall to Westray. But at least you don't need to arrive at the airport too far in advance, with the recommended time being just 10 minutes before departure. And don't expect to take on your hand luggage, as even small carry on bags are put into the cargo compartment due to the lack of space. Flights between the two islands currently start from just £19. 6
