Autonomy adds gas cars to save its car-subscription business

Four years ago, California startup Autonomy pledged to buy 23,000 EVs from 17 automakers, including Tesla, to build a vehicle-subscription business — a bet on two trends that had taken off in the early 2020s. It didn’t work out: within a year, an EV price war started by Elon Musk trying to keep Tesla competitive against a rush of new electric vehicles left Autonomy almost out of business. Its fleet, which had barely grown past 1,000 vehicles, lost around a third of its value, and founder Scott Painter (who also created TrueCar) had to more or less bail out the company as major automakers abandoned their own subscription plans.

Autonomy has stayed alive and hasn’t given up on subscriptions. On Wednesday it said it’s adding internal combustion engine (ICE) vehicles to its fleet for the first time, betting a more familiar powertrain will bring in customers. “If you’re going to be successful in anything, you’ve got to give the customer what the customer wants,” CEO Fred Weick told TechCrunch. The new lineup includes gas-powered Ford models — the Mustang, Ranger, and F-150, plus SUVs like the Bronco Sport, Escape, and Explorer — sourced from Los Angeles-based Galpin Motors and available to customers in California, with other dealer partners planned in Arizona, Florida, Texas, New York, North Carolina, and Washington, where Autonomy also operates.

The pivot comes as new car prices soar above $50,000 and used cars grow pricier too. Weick, who spent more than 20 years at Mercedes-Benz, said rising prices are making it harder for people with low or no credit access to get a vehicle. Autonomy charges a one-time fee — currently $1,000 for its EVs — plus a monthly price that varies by make and model, and customers can cancel after one month. Weick said the company is targeting university students, military families, foreign workers, and people who want a “company car” experience.

Autonomy still sees EV interest, especially in California, and maintains a fleet of a little more than 500 electric cars — far short of the 23,000 it once promised. It isn’t the only fleet company to stumble on the EV transition: Hertz claimed in 2021 it would buy up to 100,000 Teslas and more from other automakers, then sold most of them in 2024 in favor of gas vehicles.

Why it matters

Autonomy’s reversal suggests the vehicle-subscription model itself may still have a future — just not one built exclusively around EVs, at least until affordability catches up with demand.