Connected Vehicle

Kia Motors America launches connected car subscription using Zuora platform

[13th Mar 2020] Zuora, Inc., (NYSE:ZUO) the leading cloud-based subscription management platform provider, announced that Kia Motors America used the Zuora® platform to launch and scale its UVO Link subscription service – a suite of rich connected vehicle services and features through the Kia Access with UVO link app, UVO Agent for Google Assistant, UVO skill for Amazon Alexa, and Owner website. By launching its connected car initiative on the Zuora platform, Kia now has access to rich, actionable customer data and critical financial reporting capabilities, both of which it will use to continuously iterate its subscription offering and rapidly go to market with new innovations.

Consumers are increasingly demanding connected technologies to transform the traditional in-car experience. As a result, the market for automotive software and electrical/electronic (E/E) components is projected to grow to $465 billion, from $238 billion, between 2020 and 2030, according to McKinsey’s “Mapping the Automotive Software-and-Electronics Landscape Through 2030” report. Recognizing the incredible demand for in-car technology and features, Kia refocused its efforts to align with its Autonomous, Connected, and Eco/Electric (“ACE”) strategy, where it expects to adopt connected car technologies across every vehicle segment by 2025 and aims to make every vehicle model a connected car by 2030.

As a part of this strategy, Kia launched its UVO Link subscription offering with a robust set of features – from remote commands for start, lock, and climate control, to monthly vehicle health reports and more. The company’s pivotal shift to subscriptions aims to provide customers with the best possible connected car experience through innovation, convenience, and simplicity.

“Connected services are the future of the automotive industry. Our launch of subscription-based software will not only help us open up new revenue streams, but will fuel our goal to become a truly customer-centric organization,” said Orth Hedrick, Executive Director for Car Products and Connected Car at Kia Motors North America Inc. “With Zuora’s platform, we have the ability to quickly and easily iterate our connected services in order to deliver continuous value to Kia customers across the globe.”

Kia initially launched its limited UVO service in 2009. However, prior to launching its mass-market version of UVO Link in 2018, Kia needed to establish the infrastructure to build, sell and iterate a recurring subscription service in order to convert their existing customer base to paid, monetize the next generation of car technologies, and acquire and onboard new customers. The company chose Zuora as its system of record to launch and manage its subscription business due to Zuora’s ease of use, clean interface, flexibility, and experience working with seven other well-known automotive manufacturers.

With the Zuora platform, Kia developed the design, discovery, and agile framework to support its subscription service. Zuora enables Kia to quickly iterate pricing and packaging based on dynamic market demands, capture critical financial data to streamline complex finance operations, and incrementally attract and retain its existing UVO Link customers. Customers now enjoy a simple and smart connected car experience with both visibility into the services they subscribe to as well the flexibility to easily self-manage their subscriptions.

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