WisdomGroup

A Subscription Model for Electric Cars

High oil prices and a concern for the environment have driven many to look at alternatives to gasoline-fueled vehicles. Electric cars look promising, but batteries are costly. Shai Agassi, CEO of Better Place, might have solution: A subscription model similar to cell phones.

Agassi envisions a future where buyers would pay for a Tesla in the same way that they pay for the iPhone. Just as cell phone users pay for minutes, drivers will pay for miles.

In the history of the web, the biggest disruptions haven’t come from a new product, but from a new business model. Example: Google is driving Microsoft crazy because Google offers web-based software while Microsoft is still focused on the installable software model. Better Place seeks to create a similar disruption within the auto industry.

Better Place plans to build the first Electric Recharge Grids in Israel and Denmark.

Posted November 13, 2008 by Raymond T. Hightower