As the demand for flexible fleet services like car subscriptions and flexible leasing continues to grow, industry players face new challenges in building sustainable and profitable business models. During a recent episode of Join the Ride, we sat down with Bas Bisschop, Casi’s resident mobility expert in the Netherlands. Bas plays a hands-on role with key customers in this space, including Stellantis’s Drive4joy car subscription service, and is deeply involved in the day-to-day operations and strategic direction of these services. Here’s a summary of the insights he shared about the path to profitability in this rapidly evolving space.

1. Mastering Unit Economics

At the core of any successful fleet business is the need to get unit economics right. This means optimizing revenue and costs for each car in your fleet before scaling. As Bas noted, “You don’t want to scale a problem; you want to scale a profitable service.” The most important cost to manage is depreciation—the difference between the car’s purchase price and its resale value. Fleet operators must also factor in telematics, customer acquisition costs, and vehicle utilization. By fine-tuning each of these variables, companies can ensure profitability on a per-car basis.

2. Nailing Digital Sales

The second key to success lies in treating your fleet service like a digital storefront. “We’re running a webshop,” Bas explained, highlighting the need for a seamless online experience. To reduce customer acquisition costs, businesses must focus on attracting the right customers, converting them efficiently, and retaining them. A smooth and simple booking process is essential, as is leveraging digital tools for customer engagement. “The Casi platform allows us to track customer behavior and adjust our marketing to lower costs and improve conversion rates.”

3. Streamlining Operations

Flexible fleet concepts require more operational management than traditional leasing models. From managing multiple short-term customers to handling logistics, operations can quickly become complex and costly. Automation is key to staying efficient. Bas emphasized the importance of the Casi tech platform, which helps manage tasks across teams and third-party vendors: “The Casi platform is like a command center, automating tasks to ensure cars are prepared and delivered on time, cutting down operational costs while boosting customer satisfaction.”

The Road Ahead

As OEMs, leasing companies, and fleet operators look to scale their flexible fleet services, these three areas—unit economics, digital sales, and operations—will be critical to ensuring long-term success. With the right tools and strategies in place, the potential for profitability is within reach.

Want to learn more? Listen to the full Join the Ride episode with Bas Bisschop, or reach out to Casi to explore how we can help you optimize your flexible fleet operations.