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Over the past decade, more businesses and service providers are moving towards SaaS (Software as a Service) and subscription model, which claims to provide user with the most up to date products and technologies. While I am not a supporter for such business model (I am still using MS Office 2019 instead of Office 365), I have no issue with it since it is one of the many options for consumers. But the recent move by Tesla and Mercedes actually have me sit up and wondering if the whole automotive industry is also moving towards this "new" business model, at the expense of consumer's interest? For those who are not aware, Tesla's full self-driving capability is now available via subscriptions instead of a lump sum cost up front. Full Self-Driving Capability Subscriptions Tesla has started offering a monthly subscription for its Full Self Driving package for $199 per month (i.e. $2,388 per annum). Tesla owners who bought the since-discontinued Enhanced Autopilot package can get the FSD subscription for $99 per month, according to Tesla’s support page. Until now the automaker had sold its FSD package for a one-time fee of $10,000, but the monthly subscription lets users test the FSD features without a long-term commitment. Tesla owners can cancel their monthly FSD subscription at any time, according to the terms on the Tesla website. And shortly after that, Mercedes follow suit with an annual subscription plan for Full Rear-Wheel Steering for its EQS in Germany. Mercedes-Benz EQS To Offer Rear-Wheel Steering As A Subscription All Mercedes-Benz EQS models leave the factory with all the hardware necessary to turn their rear wheels by up to 10 degrees, they just need the right software. Auto Motor und Sport reports that German customers can pay €489 ($571) per year to have the feature unlocked or put down €1,169 ($1,376) upfront to have the software for three years. Interestingly, the publication notes that the system also requires the 360-degree camera which itself is a €1,130 ($1,331) option. In Singapore, where we are literally leasing a car for 10 years, such subscription are simply adding on to the owner's expenses (without taking into consideration the saving in vehicle taxes if the cost were to be paid up front). Going at this rate, what will be next, virtual cockpit, AEB, FCW, etc. to be provided on subscription basis? And what if the owner did not make timely payment, will the important safety features be disabled suddenly, resulting in accident(s)? Share your view here.
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