Autonomy, a California startup that once committed to buying 23,000 electric vehicles (EVs) from 17 automakers to fuel its subscription-only mobility model, is charting a new course. After years of setbacks tied to escalating EV prices and intense competition, the company is introducing internal combustion engine (ICE) vehicles into its fleet while keeping its core rental-subscription structure intact.
Why EVs Didn’t Deliver
Back in 2022, Autonomy made waves by promising a large-scale shift to EVs—partnering with major automakers to offer them via subscription. But EV costs surged, making it difficult for customers and companies alike. The startup managed only about 1,000 EVs in service, far short of its target, and saw roughly a third of its fleet’s value decline amid a price battle spearheaded by Tesla. Bankruptcy loomed until significant intervention from co-founder Scott Painter helped steer the company away from collapse.
ICE Vehicles: A Strategic Pivot
Now under new leadership with Fred Weick as CEO, Autonomy is adding gas-powered cars from Ford—such as the Mustang, Ranger, F-150, Bronco Sport, Escape, and Explorer—to its lineup. The new ICE options are sourced via Galpin Motors in Los Angeles and will be available not only in California but also in states like Arizona, Florida, Texas, New York, North Carolina, and Washington with help from dealer partners.
The financials for Autonomy’s model include a one-time fee (currently $1,000 for EVs) plus monthly pricing based on make and model. Subscribers can cancel at any time after the first month. The shift to ICE is aimed at reaching prospective customers struggling with high car prices, especially those with poor or no credit, as well as military families, students, foreign workers, or anyone seeking a “company car” experience without long-term commitment.
Market Forces & Similar Moves
Autonomy isn’t alone in retreating from an all-electric fleet strategy. High new-car prices—raising the cost of both EVs and ICEs—as well as inflated used-car values, are squeezing consumers. Other rental and fleet operators have made similar reversals; notably, a previous plan by another company to buy tens of thousands of Teslas was scaled back in favor of more affordable ICE models.
Weick says Autonomy still holds onto its EV promise—particularly in states like California—but the company’s real-world inventory is under 600 electric cars, a long way from the 2022 target. ICE vehicles are now being viewed as the path forward to broaden access and stabilize the subscription formula.
What to watch: whether customers embrace the convenience of short-term subscriptions over ownership or traditional leasing, whether Autonomy can sustainably manage the operating costs of ICE vehicles (fuel, maintenance, emissions), and whether stricter environmental regulations or consumer preference swing back toward EVs, challenging this hybrid approach.
Ultimately, Autonomy’s move underscores how mobility startups are wrestling with rising costs, shifting demand, and the territorial tensions between gas-powered reliability and electric innovation. The company betting on ICE vehicles reveals that the road to transportation subscriptions isn’t a straight line—it bends with market realities.
