REDWOOD CITY, Calif.--(BUSINESS WIRE)--Zuora, Inc., (NYSE:ZUO) the leading cloud-based subscription management platform provider, announced today that Clyde, powered by the Zuora® Central Platform, exceeded subscriber goals by 50 percent in its recent mobility subscription pilot program. Clyde is the subscription arm of AMAG Group AG, the largest automotive dealership and leasing company in Switzerland.
A recent study by Cox Automotive, owner of Kelley Blue Book and Autotrader.com, found that 45 percent of millennials don’t see vehicle ownership as necessary. And the numbers for Gen Z were even higher, at 55 percent. Consumers still need to get from point A to point B, but they are less and less interested in owning cars, put off by the expense and inflexibility of the traditional ownership paradigm.
The AMAG Group recognized this trend as early as 2016 and began plans to launch a subscription service. At that time, the only alternatives to car ownership in the Swiss market were expensive short-term rentals and inflexible three to four-year leases. There was an unmet need for consumers. As a result, the AMAG Group launched Clyde.
Yet the challenge for Clyde in launching its pilot subscription program was the difficulty in modifying its legacy IT infrastructure to support the complexity of subscriptions. Clyde needed an external partner with the expertise and capability to help support this change in a startup environment -- to build, measure and learn fast.
"We had the cars. We had the service processes. We had the experience in financing. And we knew the rental business quite well,” says Remo Girard, Head of Technology & Product at Clyde (part of the AMAG Innovation and Venture LAB). “We just needed Zuora to bring all our strengths together in one platform.”
Clyde’s goal was to deliver a single subscription with multiple products -- not only cars, but also bicycles, scooters, public transportation, child car seats, and bike racks. They also needed to be able to suspend or cancel subscriptions with minimal hassle.
Zuora was able to help get Clyde’s subscription service up and running in just eight weeks. And Zuora provided many of the features Clyde needed, like automated invoice processing, out of the box with no need for IT support.
The six-month pilot program launched in June 2019 with a goal of 100 subscribers. By the end of the year, the program had 150 subscribers, exceeding expectations by 50 percent. Because of the program’s success, the AMAG Group is now planning to expand its investment in Clyde.
“The success of the pilot program reaffirmed our decision to launch a subscription service,” says Girard. “Best of all, because of Zuora, we know our system is ready to scale to accommodate our future anticipated growth.”
Read more about Clyde in the company case study here.
About Zuora, Inc.
Zuora provides the leading cloud-based subscription management platform that functions as a system of record for subscription businesses across all industries. Powering the Subscription Economy®, the Zuora platform was architected specifically for dynamic, recurring subscription business models and acts as an intelligent subscription management hub that automates and orchestrates the entire subscription Order to Revenue process seamlessly across billing and revenue recognition. Zuora serves more than 1,000 companies around the world, including Box, Rogers, Schneider Electric, Xplornet and Zendesk. Headquartered in Silicon Valley, Zuora also operates offices around the world in the U.S., EMEA and APAC. To learn more about the Zuora platform, please visit www.zuora.com.
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SOURCE: Zuora Financial