Netflix For Cars? Mzansis Gen Zs Are Moving Differently

No strings attached has found its way into the transport industry, and South Africas Gen Zs are riding the wave - getting around without the hassle of long-term commitment.

While owning a car may have been a status symbol in the past, Mzansis Gen Zs are creating their own mobility traditions, prioritising experiences over material possessions.

Deloittes 2024 Global Automotive Consumer Study reveals a growing preference for e-hailing and car subscriptions among Gen Zs as opposed to owning a vehicle.

Although only one in five consumers prefer car subscription models, the interest is prominent among 18 to 34-year olds, with 28% expressing a preference for subscription services over traditional ownership.

GM of Sales and Marketing at Kinto One South Africa, Slade Thompson said the shift in mindset is reshaping the concept of mobility favouring shared experiences and flexibility over traditional car ownership.

Adding to the mobility revolution is SAs high inflation which has caused consumers to think twice even when it comes to the slightest purchase.

The economy we all face right now is daunting, especially for those who have only just entered the workforce. Owning a car is not exactly an accessible mobility option, but thats not going to stop this new generation from getting wheels on the road, Thompson said.

While owning a vehicle sounds more convenient than a vehicle subscription, Thompson notes that Gen Zs appreciate the flexibility of having a ride without the hassle of ownership.

While the idea of getting around conveniently without the admin and financial responsibility of vehicle maintenance sounds exciting, car subscription services are still a blur for many South Africans.

So, how does it really work? Think of it as Netflix for cars, Thompson said.

Instead of owning, you subscribe to a car service, choosing from a range of vehicles depending on your needs and budget. Monthly fees typically cover insurance, maintenance, and even roadside assistance, he explained.

Acknowledging that Gen Zs typically seek mobility solutions that align with their dynamic lifestyle, Thompson said the preference for subscription services was more than a lifestyle-drive decision.

The mania inherent in todays economic climate plays a critical role in the rise of subscription vehicles.

According to Deloittes research, 80% of consumers expect to pay less than R9 451,19 a month for their next used or new vehicle subscription.

This aligns with Gen Zs pragmatic approach to spending, prioritising value and flexibility in their transportation choices, said Thompson.

Meanwhile, the integration of technology is also a significant factor in the growing trend.

Raised in the age of digital, Gen Z consumers value convenience and seamless experiences.

Car manufacturers and dealers are adapting by exploring new profit streams, including in-house insurance products and subscription services, signalling a potential disruption to the traditional automotive business model, Thompson noted.