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For now, emerging markets prefer MaaS to vehicle subscriptions

The growth of ride-hailing and micromobility in markets like Brazil means that subscription offerings will remain a niche, upmarket option. By Xavier Boucherat

Compared with developed markets such as the US, private vehicle ownership remains out of reach for many in emerging and developing markets. Consider Brazil: continuing economic volatility, low incomes, an unemployment rate of 12% and a worsening situation thanks to the novel coronavirus (COVID-19) means financing can be tricky to come by. Other expenses, such as fuel, toll-roads and replacement parts, are all relatively more expensive, and high instances of vehicle theft—and resulting insurance premiums—also raise the total cost of ownership.

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