Scott Painter, a serial entrepreneur, has faced numerous challenges and pivots throughout his career. After his electric vehicle subscription company, Autonomy, failed to meet its goals, Painter has now launched a new venture called Autonomy Data Services (ADS). ADS aims to provide a software platform and data to automakers and other companies interested in operating their own subscription services for electric, gas, new, or used cars.
Painter reveals that ADS is already generating revenue with an early version of its service. The company is in negotiations with multiple automakers, including some that have previously run their own subscription services. ADS has also partnered with Deloitte to run the service, with ADS providing the software-as-a-service and receiving a revenue share, while Deloitte charges the automakers or other customers for platform customization.
This latest pivot for Painter follows a rocky few years, including his departure from TrueCar, a company he founded, and the failure of his car leasing startup, Fair. Despite the challenges, Painter managed to secure the support of Autonomy’s investors, who converted $32 million worth of debt into equity in ADS. He also made personal sacrifices, such as selling properties and assets, to make the new venture possible.
One of the key reasons why automakers’ subscription services failed in the past, according to Painter, is the lack of understanding of customer behavior and pricing. ADS aims to address this issue by offering valuable data and insights. Painter acquired the assets of bankrupt used car marketplace Shift Technologies, which had previously acquired Fair and Ford’s subscription service Canvas. The data from these companies can be used to predict customer behavior based on factors such as credit score and income.
ADS also obtained the source code, patents, trademarks, and legal work product from the defunct businesses it acquired. This allows the company to quickly enter new markets and offer its services. Painter humorously describes the amount of data he obtained as an “astonishing avalanche of s—,” highlighting the significant investment that went into developing the software now owned by ADS.
While ADS has secured $2.5 million in funding, it is actively looking for an equity partner to provide additional investment. With this funding, ADS plans to scale its operations with the support of Deloitte for the next two years.
Overall, Painter’s pivot to Autonomy Data Services represents his determination and resilience as an entrepreneur. The company’s focus on providing valuable data and a software platform for automakers and other companies interested in subscription services could potentially address the previous challenges faced by the industry. ADS has the potential to revolutionize the subscription service model and provide automakers with the necessary tools to understand customer behavior and pricing, ultimately making subscription services more attractive to consumers.
