Update on delivery, collection and swap pricing

Hi everyone

I’m here today to give you an update on our delivery, collection and swap pricing.

Due to increased logistics and supply chain costs we have had to take the difficult decision to increase prices for delivery, collection and swaps. While we have continued to absorb increased costs wherever possible, it means that as of 1st December 2022, our delivery, collection and swap prices will be as follows:

Delivery or collection will increase from £99.50 to £129.50.
Swapping a car will increase from £49.50 to £79.50.

That means if you book a delivery, collection or swap before 1st Dec, you will pay the current price, regardless of the delivery date. For example, if you book a delivery on 17th Nov for a delivery date on 5th Dec you will pay £99.50. Any delivery, collection or swap booked from 1st Dec onwards will be at the new price.

Increasing prices is not a decision we take lightly. For context, we do not make any profit on delivery fees, but we need to cover costs incurred through our delivery partners while ensuring we can offer a simple, flexible service at the high standard you expect.

I appreciate that this is not welcome news at a time when living costs are rising, but I hope you understand the reasoning for these changes and know that we’re doing our utmost to provide you with a great service at a fair price.

Lastly, I would like to thank each of you for being part of this brilliant community. We are here to listen and learn from you as we build and improve our service, putting you at the heart of everything we do.

Thanks for your ongoing support.

Rob, CEO and co-founder

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Hi Rob.

Unfortunate but understandable.

I’m assuming we’ll still be able to use reward points for a swap and the “price” of these will just be amended accordingly?

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Those prices are painful. I guess there is an element of “it is what it is”, and I’m not suggesting you’re making a profit on it, but at the same time it’s a decent wedge - 1/4 of a monthly subscription in many cases.

£100+ delivery charges feels like a tipping point for me, particularly for any short term subscription.

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Totally Understandable, and in line with others in the sector…

Elmo charge £120 for every delivery, collection and swap, and ezoo charge £1.80 per mile from a post code for again swap and delivery and collection…

So @Durzel everyone is charging over £100

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I had a look at Elmo before settling for Onto. They charge £200 for delivery to Scotland!

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Bring back customer collection as an option

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With this price rising are we also to expect a rise in subscription prices?

Cant see that ever happening due to the scale of operations/logistics. It would probably be twice the cost of having it delivered/collected.

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Yeah, I appreciate it is a sign of the times, it just changes the Onto value proposition somewhat I think. It definitely makes 1-2 month subscriptions considerably less palatable.

Also +1 on collections - I’d happily get a lift or the train up to Birmingham or wherever the central location is and drive back.

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Is unfortunately news but understandable
There should be really slowly a push for pick up spots across the country what would maybe reduce the cost

The hire price has gone up and with the swap price gone up the second time not so long apart makes me worried a further increase in the hire price because that was the sequence it happen last time .

I can understand the need to increase prices to keep the company away from making a lost but it is a step closer to keep not just the low income holder but also the mid tier away from the ev and from taken advantage of your service what means in the end devil’s circle lost of revenue due to less subscription mean further increase and so on

If there is no way to keep going with the cost as it keep increasing an alternative should be found

If we carry on like that I’m sure we are by 2025 would be close to £300 just to get the car delivered what really can be the way to go.

I also hope seen onto adventure into the family van like the vw buzz what especially for bigger family’s would be a good ev not going that way will give your competition a advantage what I have to say is growing

I think people are not gonna swap cars as much and keep hold on there cars till RR

For me, I always use rewards points for a swap, so it won’t make too much difference.

However, I can see the effect being different for someone who uses reward points to add extra mileage. Also, for new subscribers it’s quite a large amount and potentially off-putting, although I guess the Onto business model has adapted more to long term, rather than short term subscribers anyway.

Won’t be long 🫠

Just swapped mine In time and used my points 🫠

I realy do think onto are going to become or have something the middle class and above can only use…with the drop in mileage and increase in everything plus the credit check now a lot of people cannot afford them.

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Yup.

We don’t want to hear it.

But it’s today’s reality.

I hope it comes hand-in-hand with you tying the third party(ies) down to keeping their service good, if not better, annd reducing issues…. Including keeping preparation of cars tip-top. There’s some good people in the delivery front line too… but there’s probably some room for improvement still.

People who may not have met @Rob_at_Onto may not have got that vibe of genuinely wanting to provide at affordable for all price levels, so we know you wouldn’t make this move if you could avoid it.

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I got my car delivered in October and took the gentleman that delivered it to the train station. He got a text from his company saying his fee had been paid into his account and showed me it, it was for £125.
So Onto would have paid more than that I suspect.
So Onto will still be absorbing a loss on Delivery and especially swaps.

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Lets all see if there are changes in the tax on electric cars.

With the current fuel status on par with each other, any tax increase could seriously hit the car industry.

Most company car users switched for the tax saving and if that goes, companies may push back to ICE cars due to costs.

Then if the car tax (old road fund) goes up per year, will ONTO pass that to us?

Charging costs may reduce a little moving forward if we have a mild winter, but it is unlikely.

April 2023 may see more monthly increase and if inline with inflation that would be 10% :scream:

Whilst I do get this and understand it, the pricing seems a bit of an anomaly to me. I would have thought (just logically) that the swap might have a smaller increase since the driver knows its a drop off and pick up from the same location (and so I would have thought costs less to do in practice) when a pick up or drop off means there is another vehicle and or extra people or a train, extra ‘dead’ time etc involved to get the driver to/from the car.
Of course I appreciate that a swap is 2 transactions effectively a delivery and a pick up in one and also a swap may also have been historically underpriced as well.
In any case I get it and it seems fair enough, just thought this was a bit of an anomaly…

Hello :wave:

This is something we’ve been looking into! Though it has been challenging finding locations and partners that can enable us to do this across the country.

If anything does change, we’ll be sure to communicate it with you.

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