Ford recently upped the cost of the BlueCruise self-driving software subscription. This function is available in models like the Mustang Mach-E and the F-150. The effect of this choice on consumers and the larger automotive industry has drawn attention and sparked concerns. In 2021, Ford unveiled BlueCruise, giving motorists access to over 100,000 miles of hands-free highway travel across North America. The first subscription fee was $200 per year, or $600 for three years. In addition to enabling self-driving capabilities, the technology also had safety measures like a warning system for drivers who take their eyes off the road. Additionally, Ford improved BlueCruise last year by adding fresh features like In-Lane Repositioning, Predictive Speed Assist, and Lane Change Assist.
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The Price Hike: Justification and Implications:
Customers are wondering why Ford decided to increase the cost of the BlueCruise subscription to $2,100 for three years, or $800 each year. Ford claims that the initial annual subscription fee of $200 was a special deal that was unveiled together with the 2021 Mustang Mach-E vehicles. The new fee is probably a result of BlueCruise 1.2’s improved capabilities and inclusion as a standard feature in the newest versions.
Subscription Revenue: A Growing Trend:
It’s hardly a novel idea for automakers to use subscription revenue. Companies across industries are utilising subscription models to increase profitability in the age of services like Netflix. It is logical that self-driving software is included in this trend despite some people objecting to paying a subscription fee for services like heated seats or Apple CarPlay due to their expensive development and maintenance expenses.
Comparing Ford BlueCruise with Competitors:
It is critical to take competition into account while evaluating the expanded BlueCruise subscription’s value offer. When compared to Tesla’s AutoPilot, which costs $99 or $199 depending on the package, Ford’s pricing is still rather competitive. In addition, Ford provides a three-month free trial of BlueCruise so that potential consumers can assess its value before subscribing.
Impact on Consumers:
The pricing change will surely have an effect on customers who are thinking about buying a Ford vehicle with BlueCruise. The decision-making process may be impacted by the increased subscription fee, even though it is still relatively lower than certain competitors. The new costs won’t apply to people who have previously signed up for BlueCruise at the former rate of $200 for three years until their current subscription expires.
Industry Implications:
Ford’s choice to increase the cost of a BlueCruise subscription could have wider repercussions for the auto industry. It shows how important subscription-based income models are becoming to automakers. We should expect additional automakers to use similar tactics as self-driving technology develops in order to offset the significant costs associated with the development, upkeep, and research of advanced driver-assistance systems.
Conclusion:
Ford’s choice to raise the BlueCruise subscription cost to $800 yearly is a significant step in the rapidly evolving auto industry. As self-driving technology becomes more prevalent, automakers are having a hard time striking a balance between providing cutting-edge features and sustaining long-term profitability. The move to subscription-based business models is being prompted by the requirement to cover the high expenses involved in the creation, maintenance, and research of cutting-edge driver-assistance technology.
Consumers may wonder whether BlueCruise still offers a good deal given the increased subscription cost. Even though $800 a year might appear exorbitant, especially when compared to the initial $200 a year deal, it is still reasonably priced compared to some of its rivals. For instance, depending on the bundle, Tesla’s AutoPilot costs $99 or $199. Ford’s choice to provide prospective customers a three-month free trial of BlueCruise shows a dedication to enabling them to experience the technology firsthand and make an informed decision.
