It’s also important to note that the consumer vehicles were designed specifically for a subscription model. The vehicles are not only made of extra-durable materials but also only come in one color and one trim, greatly minimizing production expenses. Other companies like Tesla simply aren’t configured optimally for a subscription model.

Even before the first cars are delivered, Canoo has found another way to generate revenue. In a strong vote of confidence in Canoo’s technology, South Korean auto giant Hyundai is paying the company for “engineering services” to use the skateboard for a range of lower-cost electric cars and trucks. Canoo will work with Hyundai and subsidiary Kia to modify the skateboard that integrates the battery pack, motors and other key components."

Canoo is also shaking up the dealership model, having customers instead download an app that serves as a point of control. The company says the app manages maintenance, public battery charging and access to insurance, “liberating you from the tyranny of auto ownership.” The subscription model should enable Canoo to be less dependent on new vehicle sales and be “asset light” by leveraging the lessons of larger companies and auto subscription experts.