Four years ago, California startup Autonomy made a bold pledge to buy 23,000 electric vehicles from 17 automakers, including Tesla, and offer them through a vehicle subscription service. It was a bet on two converging trends: the rapid shift to EVs and the emerging appetite for flexible car access over ownership. But that bet nearly bankrupted the company within a year, a victim of Elon Musk’s aggressive price war that slashed the value of Autonomy’s fleet by roughly a third. Now, after barely surviving, Autonomy is pivoting hard. On Wednesday, the company announced it is adding internal combustion engine (ICE) vehicles to its lineup for the first time, a strategic retreat from its all-EV vision that aims to give customers what they actually want—not what Silicon Valley assumed they would eventually crave.
From 23,000 EVs to a Gas-Powered Pivot: The Story Behind Autonomy’s Subscription Service Revival
In 2022, Autonomy captured headlines with its audacious order for 23,000 EVs from a wide range of manufacturers. The idea was simple: let consumers subscribe to a vehicle month-to-month, avoiding the long-term commitment of a loan or lease, while driving the latest electric technology. But the automotive landscape shifted violently soon after. Tesla, facing a flood of new EV competitors, slashed prices repeatedly, triggering a depreciation spiral that crushed the residual value of Autonomy’s fleet. By July 2023, the startup was on the brink of collapse. Its fleet had barely grown past 1,000 vehicles, and the company lost around a third of its value. Founder Scott Painter—who previously created TrueCar—had to inject his own capital to keep the lights on, while major automakers abandoned their own subscription experiments.
What Is Autonomy’s Vehicle Subscription Service?
Autonomy’s service allows customers to pay a one-time activation fee (currently $1,000 for EVs) plus a monthly fee that varies by make and model. After the first month, subscribers can cancel at any time with no penalty. The company aims to provide easy, quick access to mobility without the traditional headaches of financing, insurance, or depreciation risk. The new gas-powered options expand this model to include Ford vehicles such as the Mustang, Ranger, F-150, Bronco Sport, Escape, and Explorer, sourced initially from Galpin Motors in Los Angeles.
Why Autonomy Ditched Its All-EV Fleet—And Why It Took So Long
The decision to add gas vehicles wasn’t ideological. It was survival. CEO Fred Weick, a 20-year veteran of Mercedes-Benz, told TechCrunch that the company had to “give the customer what the customer wants.” He noted that there are very few examples in history of successfully creating products customers didn’t know they wanted. Autonomy learned this lesson the hard way. The company’s fleet of a little more than 500 EVs is a far cry from the 23,000 it once promised. But it’s hardly alone in this stumble. Hertz famously claimed it would buy up to 100,000 Teslas in 2021, only to sell off most of its EV fleet in 2024 in favor of gas vehicles.
How Does Autonomy’s Pricing Compare to Traditional Car Ownership?
Autonomy charges a one-time fee (currently $1,000 for EVs) and a monthly subscription price that varies. The exact monthly cost for gas vehicles was not disclosed in the announcement, but the company’s model eliminates down payments, long-term loans, and the hassle of reselling. Customers can cancel after one month. The target audience includes university students, military families, foreign workers, and people who want a “company car” experience—groups that often struggle with credit access or need short-term mobility solutions.
The Timing: Why Gas Vehicles Now Makes Sense
Autonomy is reviving its subscription service at a moment when new car prices regularly exceed $50,000 and used cars are becoming more expensive. For people with low credit scores or no access to credit, traditional financing is increasingly out of reach. Autonomy’s subscription model offers an alternative: no credit check required, no long-term commitment, and insurance included. The addition of ICE vehicles broadens the appeal to customers who remain skeptical of EV range, charging infrastructure, or upfront costs. Weick emphasized that the past business models were “trying to fit a new concept into old shoes,” and that Autonomy’s current approach is about meeting existing demand rather than forcing a technology shift.
Which Gas Vehicles Is Autonomy Adding?
The initial gas-powered lineup includes Ford’s best-sellers: the Mustang, Ranger, F-150 pickups, Bronco Sport, Escape, and Explorer. These are sourced from Galpin Motors in Los Angeles and initially available in California. Autonomy also operates in Arizona, Florida, Texas, New York, North Carolina, and Washington, and plans to work with other dealer partners in those markets.
What This Means for the Vehicle Subscription Industry
Autonomy’s pivot is a microcosm of the broader struggle to make vehicle subscriptions work at scale. The concept has been tried by automakers such as Volvo, Cadillac, and Porsche, only to be scaled back or abandoned due to high costs, operational complexity, and limited consumer adoption. The reasons are structural: subscriptions require managing depreciation risk, vehicle maintenance, insurance, and turnover—all of which are easier with a stable, predictable fleet value. EVs, with their rapid technology cycles and price volatility, amplify these risks. By adding gas vehicles, Autonomy hedges against depreciation shocks and taps into a more mature used-car market. The move also signals that even the most EV-optimistic startups are willing to reverse course when the economics don’t work.
What Are the Risks of Autonomy’s Pivot?
Adding ICE vehicles introduces its own challenges: stricter emissions regulations, fluctuating gas prices, and the need to manage a more complex supply chain. Autonomy’s fleet has shrunk dramatically from its original ambition, and its survival depends on scaling subscriptions to achieve unit economics that make sense. The company is targeting niche segments—students, military families, foreign workers—which may not provide the volume needed to reach profitability. Additionally, the subscription model itself remains unproven at scale; most consumers still prefer owning a vehicle outright or leasing through traditional channels.
How Autonomy Plans to Win Over Customers
Weick identified four core customer groups: university students who need a car for a semester or internship; military families who move frequently and cannot commit to long-term financing; foreign workers on temporary assignments who lack credit history; and individuals who want the “company car” experience without being self-employed. All of these segments value flexibility over ownership. Autonomy’s one-month minimum commitment and no-fault cancellation are designed to capture these transient needs. The company is also betting that by offering gas vehicles alongside EVs, it can convert first-time subscribers into repeat customers who may later try an EV when they feel ready.
Does Autonomy Still Believe in EVs?
Yes, according to Weick, but only for the right customers. Autonomy still maintains a fleet of a little more than 500 electric cars, and the company sees continued interest in EVs, particularly in California where charging infrastructure is more developed. However, it acknowledges that forcing EVs on an unwilling market was a mistake. The new strategy is to offer both powertrains and let consumer preference dictate the mix.
The Road Ahead: Can Subscriptions Finally Work?
Autonomy’s survival and pivot offer a cautionary tale about the gap between visionary ambition and market reality. The company’s immediate future depends on execution: whether it can effectively market its ICE subscriptions, scale partnerships with dealers like Galpin Motors, and manage the operational complexity of a dual-fuel fleet. The broader subscription model still faces headwinds, including regulatory uncertainty (how are subscription fees classified? Are they leases or rentals?), insurance costs, and consumer reluctance to pay a premium for flexibility. But Autonomy may have found a viable niche: serving people who are locked out of traditional car ownership by credit, mobility, or lifestyle constraints. If it can make the numbers work with gas vehicles, it might eventually revive its EV ambitions on a more solid foundation.
