Cox Automotive expects its recently developed mobility division to grow to revenue around $150 million over the next few years, with a target to expand to a multi-billion dollar business within the next decade, Joe George, president of Cox’s Mobility Solutions Group, told Auto Finance News.
Last week, Cox Automotive announced the launch of its Mobility Solutions Group, which is set to provide the multi-brand industry player with a “grassroots” focus on innovations in mobility, George said.
The group was born from the incubation of Clutch Technologies, a car subscription technology provider that’s working with dealerships to enable consumers to swap cars freely with one all-inclusive price. The technology powers mobility services such as Access by BMW, Mercedes-Benz Collection, and Porsche Passport.
“It’s a significant opportunity to leverage not only our physical facilities but also our technologies that allow fleet owners to make better life cycle decisions,” he said.
George’s first priority is determining how to leverage Cox’s technology and tech-related investments to help OEMs and dealers develop relationships with their consumers. “It allows us to get in front of the competition,” he said.
President of Clutch, Vince Zappa, will serve as the main technology driver for the group. Clutch was started as part of Cox Enterprises’ Innovation Fund, and the parent company acquired the startup for an undisclosed sum earlier this month.
George’s team will also include Cox executives David Liniado, vice president of new growth and development and Jenny Bedard, head of finance.
“We don’t see traditional car purchase going away,” George said. “But we see more options for consumers to satisfy their mobility needs in different ways and different use cases.”
