Mercedes-Benz to end luxury subscription service: Report

European car manufacturer Mercedes-Benz will end its subscription service Mercedes-Benz Collection on July 31 due to lackluster sales, according to a new report from Automotive News.

“If the demand would have been unbelievable, then it could have gone further,” Mercedes-Benz USA Head of Sales Adam Chamberlain told the publication.

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Mercedes-Benz Collection was first announced in 2018 and offered drivers the chance to swap between 30 of the brand’s luxury vehicles for $1,095, $1,595, $2,995 or $3,595 per month plus a $495 activation fee. However, the service was only available in pilot program cities, including Atlanta, Philadelphia and Nashville.

Executives had reportedly expected the subscription service to appeal to drivers who wanted to drive high-end Mercedes vehicles without commitment and predicted it would turn a profit within the first 12 to 18 months of its launch.

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The service only attracted a few hundred subscribers, according to Automotive News.

FOX Business reached out to Mercedes-Benz's parent company, Daimler AG, for comment and to ask whether the subscription service will be replaced with another promotion but did not immediately hear back at the time of publication.

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Car manufacturers have experimented with subscription models in recent years similar to that of car rental companies. However, not all have been successful.

Ford sold its subscription service, Canvas, to the tech company Fair late last year. Cadillac, on the other hand, ended its luxury car subscription service, Book, and then brought it back with a smaller selection.

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Other carmakers such as BMW, Porshe and Jaguar have their own subscription services as well.