SOCAR will take over Faraday's vehicle, customer contracts, and operations systems to enter the long-term subscription market.
According to the industry on the 22nd, SOCAR recently signed a memorandum of understanding (MOU) to acquire the operations of Faraday, the car subscription service of Whitecube. The final business transfer agreement is expected to be completed in the first half.
Faraday is a monthly EV subscription service launched in Jan. 2024, and it has operated a long-term subscription model that allows vehicles to be used for up to 84 months. All operating vehicles are currently under subscription contracts, with an average subscription period of 76 months.
SOCAR said the acquisition is aimed at advancing its "full-stack mobility" strategy that encompasses the entire spectrum of movement. SOCAR's existing services have centered on 10-minute car sharing and SOCAR Plan, a weekly and monthly vehicle lending service.
With the addition of Faraday's 12–84 month long-term subscription service, the company has built an integrated vehicle subscription portfolio that spans from 1 hour to 7 years.
The transaction is also expected to further strengthen SOCAR's EV subscription competitiveness. In Mar., SOCAR added Tesla Model S and Model X vehicles equipped with supervised Full Self-Driving (FSD) to its subscription lineup.
About 90% of the roughly 550 vehicles operated by Faraday are EVs, and most are known to be Tesla Model 3 and Model Y. The Tesla-centered EV subscription portfolio is expected to expand significantly going forward.