EV startup startup Canoo will offer cars by subscription only
Evelozcity, the U.S. electric vehicle startup, has changed its name to Canoo and said that it will offer a range of EVs to private and commercial customers by subscription only.
Canoo will start sales in the United States in 2021, eventually expanding to China. The company has not disclosed its investors but has raised about $1 billion and plans to market a four-model range that will include personal commuter and "lifestyle" vehicles, as well as commercial vehicles for ride and delivery services. The so-called lifestyle vehicle is meant to provide the space and functionality of an SUV, the company said.
The company said it would not have a dealer network. It will offer a variety of subscriptions of different duration, some bundled with insurance and related services.
Canoo said it is planning a "lean" operation that will rely on a contract manufacturer to assemble its vehicles. Last week we reported the company was in talks with Canadian supplier Magna International and its unit Magna-Steyr to assemble the startup's vehicles in the United States. Canoo said it is evaluating partners for manufacturing but no contracts are signed yet.