Vehicle subscription startup Autonomy pivots
Autonomy, which offers an all-inclusive EV subscription, is pivoting from vehicle subscriptions to launch a new SaaS business, Autonomy Data Services, in partnership with Deloitte.
ADS has secured $2.5 million in new funding and completed a $32 million debt-for-equity swap, along with acquiring all subscription-related technology and intellectual property.
Founded in 2020, Autonomy publicly disclosed ~$87 million in funding and in 2022, it announced partnerships with Digisure and Liberty Mutual around insurance.
ADS is introducing a new business approach “with no debt or residual risk.” Its licensing and SaaS revenue model will cater to OEMs, captive finance companies, fleet operators, rental car companies, and car dealerships seeking to implement subscription offerings. This model is already operational and generating revenue with existing clients.
As part the shift, ADS has acquired key assets from Shift, Canvas, UberXChange Leasing, and Fair. The acquisition, valued between $10 to $12 million, provides a solid foundation for the company’s new business model. The acquired intellectual property includes brand names, domain IP, compliance, legal work product for 50-state operating licensing, technology codebase, customer apps, integration mapping, system algorithms, and extensive data assets.
In an interview with TechCrunch, Scott Painter, the founder and CEO of Autonomy, says that the plan to build an all-electric vehicle subscription business hasn’t worked out. He added that he had to sell a $6 million beach house, mortgage another property, and offload a bunch of assets he didn’t want to sell to keep the business going. He also convinced Autonomy lenders to convert $32 million worth of debt in Autonomy into equity in ADS.
“With Deloitte as our partner, ADS is set to expand its market reach by leveraging Deloitte’s extensive network and expertise. This partnership positions ADS at the forefront of the evolving vehicle subscription market, enabling the provision of innovative solutions without the burden of debt or residual risk.” – Scott Painter, founder of ADS.
“The shift to a SaaS model allows ADS to leverage its technology and data to offer comprehensive subscription solutions to OEMs. Here at ADS, we are now a bigger believer in the subscription model more than ever.” – George Bauer, Executive Chairman of ADS.
