Ford expands its monthly car subscription service Canvas

Ford is expanding its Canvas business model out to Los Angeles. After being acquired by Ford’s credit division, the monthly subscription model was limited to San Francisco. The Canvas model is relatively simple compared to existing lease and buy options – customers can get vehicles on a month-to-month basis, with no longer term commitments, with a single monthly payment that covers the cost of vehicle maintenance, warranty, roadside assistance and car insurance, as well as the cost of the car itself. This fee averages out to around $400 to $500 per month, which isn’t that far off from what you’d pay with a more traditional lease and insurance anyway.

Ned Ryan, CEO and Founder of Canvas, said that “We launched the product in early May just in the Bay Area, and have seen very strong and positive response from customers. If you think about the Bay Area, not necessarily the most car-centric city, so I think we were really impressed with that response. If you think about LA, maybe the most car-centric city in the U.S., we’re excited to see the response there”. For Ford, it’s a way to experiment with changing market trends today while laying the groundwork for some of its more ambitious plans, and yet another example of automakers looking to change up fundamental aspects of the way in which they do business.