Finn, the Munich-based car subscription startup, is expanding beyond individual consumer rentals in the U.S. and into long-term business rentals.
Car subscriptions offer flexibility, maintenance, roadside assistance and, in many cases, delivery of the vehicle directly to your door, and all for around the same price of a lease. For the consumer, that sounds great. For the startup, it sounds like an overhead nightmare. It makes sense that Finn would, if not exactly pivot, open up its service to fleets, which provide a potentially more stable and lucrative business than individual consumers.
Finn said it had originally trialed the B2B car subscription service in Germany and found it to be successful. In the U.S., Finn’s delivery radius covers Connecticut, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington, D.C. The startup is working to expand to California and Florida, and potentially other states, in 2023, a spokesperson told TechCrunch.
The company said it has 2,000 cars, trucks and SUVs on the ground in the U.S., as well as a number of electric vehicle models. About 30% of Finn’s global fleet is electric.
Many of Finn’s business partners are keen to test out EVs as part of their fleet, a response to the regulatory changes happening across the world that incentivize companies to electrify. If Finn wants to stay in the game, it’ll have to increase its EV mix, which might require it to raise more funds. Last May, Finn raised $110 million, bringing its total funding up to $908.3 million.
Until then, Finn is targeting the small-to-medium sized companies with fleet sizes of 15 to 100 vehicles, which “tend to be underserved by incumbents and a good fit for Finn’s all inclusive and flexible model,” a spokesperson told TechCrunch.
Once Finn launches its B2B business in the States, it’ll work on rolling out its Business Portal, which is where customers can acquire new vehicles, manage current vehicles and view important documents.