Avis Ramps Up Pay-As-You-Go Car Subscriptions to Revolutionize Vehicle Access in South Africa

In a landscape where traditional vehicle ownership is becoming increasingly complex and rigid, Avis has partnered with FlexClub to bring another mobility innovation to the South African market. JSE listed Zeda Limited, is a leading integrated mobility solutions business operating in 11 African markets including South Africa. For more than 55 years, it has held the license for the Avis and Budget brands. Zeda’s aspiration is to drive the adoption of the usership economy through innovation. To this end, Zeda believes that the long-term future of mobility will shift from ownership to usership. The business has been on the cutting edge of tailoring mobility subscription products to cater for this increasing demand. 

The latest improvements to the Avis Subscription product continue their innovation efforts, offering a more flexible approach to accessing newer vehicles, allowing customers to avoid long-term commitments and adjust their plans without penalties. This flexibility is now complemented by an online platform that makes it easy for customers to manage and top-up their subscriptions. It is targeted at consumers seeking greater control over their monthly mobility expenses. Notably, Avis Subscriptions are accessible to anyone with a cheque or credit card, eliminating the burden of credit checks, onerous application processes, or high deposits typically associated with traditional vehicle finance.

Zeda in partnership with FlexClub, is rolling out its new and improved Avis-branded pay-as-you-go subscription offering. With this innovation, Zeda has once again provided a platform that makes it easier for customers to tailor their own mobility requirements. Using the Avis pay-as-you-go car subscription service on avissubscription.co.za, customers can now configure and manage their prepaid car subscription plans online.

The Quest for Continued Mobility Innovation

In late 2021, Avis began piloting long-term car subscriptions in South Africa to test local demand for consumer leases. This led to the development of its consumer lease offering, Avis iLease, which officially launched in November 2023. Avis iLease is an innovation specifically designed for finance-eligible customers who prefer to lease rather than finance a vehicle, avoiding the ownership burden of traditional vehicle finance. This move was inspired by the growing trend of private leasing in markets across Europe and the U.S.

The latest pay-as-you-go innovation builds on learnings from Avis’ entry into the subscription economy in 2021. It addresses the growing gap left by traditional vehicle finance in South Africa, where more than 70% of the demand for new cars is unmet.

“At Zeda, our purpose is to connect humanity. As a trusted end-to-end mobility services provider, over recent years we continued to invest in a wider range of innovative mobility products that drive the usership economy,” said Ramasela Ganda, CEO of Zeda. “Our newest Avis pay-as-you-go subscription offering continues that evolution, putting Zeda in a prime position to champion this inflection point in the local mobility market.”

The Dawn of Prepaid Mobility

The new pay-as-you-go mobility innovation is expected to expand vehicle access in South Africa, drawing parallels to the rollout of pay-as-you-go models by Mobile phone companies in the late 1990s, which democratized access to mobile telecommunication.

“We’ve seen a clear shift in consumer behaviour towards car subscriptions since 2020, with more people opting for greater control and flexibility over rigid long-term financial commitments,” said Tinashe Ruzane, CEO of FlexClub. “Our technology platform for prepaid mobility addresses this need through a convenient, digital user journey designed to enable our partners to easily offer pay-as-you-go car subscriptions to their customers. We’re incredibly excited to support Avis’ vision to reshape the mobility market in Africa and build a leading mobility network.”