EV Car Subscription Startup Autonomy Pivots to SaaS Business; Acquires IP; Launches ADS with Deloitte

Autonomy's quest to offer electric vehicle (EV) subscription services -- as an alternative to EV car purchases and leases -- apparently wasn't going as planned.

In a major pivot, Autonomy has raised some funds, acquired certain intellectual property (IP), and launched a new business called Autonomy Data Services (ADS). The new focus: Offer SaaS applications that allow customers to manage EV fleets and far more.

This is M&A deal number 249 that Sustainable Tech Partner has covered so far in 2024. Related: See all M&A deals involving sustainability, climate tech and green IT services listed here.

The ADS launch involves a partnership with Deloitte, the global IT consulting company. Deloitte did not disclose whether it owns a financial stake in ADS.

EV Market Challenges, ADS Acquisitions

The pivot comes at a key time in the EV market. Indeed, U.S. EV sales growth slowed in 2023, according to Kelley Blue Book and Cox Automotive. Multiple EV carmakers and EV charging station companies have suffered financial losses and layoffs. Moreover, Tesla price cuts nearly put Autonomy out of business, Bloomberg reported in July 2023.

Amid that backdrop, Autonomy in August 2024 pivoted and launched ADS -- a SaaS business for "OEMs, captive finance companies, fleet operators, rental car companies, and car dealerships seeking to implement subscription offerings," Autonomy said.

On the technology and intellectual property front, ADS has acquired assets from Shift, Canvas, UberXChange Leasing, and Fair. The acquisition was valued at between $10 million to $12 million, Autonomy said.

Autonomy Business History: NextCar Launch, Deloitte Partnership

Autonomy, founded in 2020, is based in Santa Monica, California. The company, originally known as NextCar Holding Corp (NXCR), announced a $400 million debt facility with Westlake Financial in December 2020. From there, Autonomy developed an all-inclusive EV subscription model that "removes the hassles of leasing or owning" while giving customers a "much more affordable month-to-month option than renting," according to the company's website.

In a high-stakes move, Autonomy ordered nearly 23,000 EVs from 17 different automakers in August 2022. The order, valued at $1.2 billion, was expected to involve EV deliveries through the end of 2023.

By November 2023, Autonomy and Deloitte partnered to help Deloitte clients "seeking to bring mobility subscription models to market in less time." Still, we don't know how Autonomy's business was performing financially at the time.

Autonomy Pivots Business Model, Raises Funding for SaaS Platform

Amid the business pivot to SaaS applications, ADS has secured $2.5 million in new funding and completed a $32 million debt-for-equity swap, Autonomy said in August 2024.

The SaaS business model is already operational and generating revenue with existing clients, ADS said -- though the startup did not disclose monthly recurring revenue (MRR), cash flow details or the number or subscription seats under management.

In a prepared statement about the pivot, ADS founder Scott Painter said: “With Deloitte as our partner, ADS is set to expand its market reach by leveraging Deloitte's extensive network and expertise. This partnership positions ADS at the forefront of the evolving vehicle subscription market, enabling the provision of innovative solutions without the burden of debt or residual risk.”

Added Georg Bauer, executive chairman of ADS “The shift to a SaaS model allows ADS to leverage its technology and data to offer comprehensive subscription solutions to OEMs. Here at ADS, we are now a bigger believer in the subscription model more than ever.”

Deloitte executives were not quoted in the ADS launch announcement.

Deloitte executives were not quoted in the pivot announcement.

Deloitte offers numerous sustainability, climate tech and green IT services for partners and customers. Within its own business, Deloitte plans to covert 100% of its fleet to hybrid electric and electric vehicles by 2030.

Related: See our detailed Deloitte sustainability timeline, which we update regularly.