Thursday, November 14, 2024

Volvo's answer to Spotify closes – fires all employees

Volvo is now shutting down what was thought to be the car's answer to Spoitfy. Instead, the car-sharing service Volvo On Demand is buried and 50 people lose their jobs.

Volvo closes its car-sharing service 'On Demand' and lays off 50 employees. The car manufacturer has decided to discontinue the service due to a difficult economic climate that has rapidly increasing operating costs.

– The notification is obviously a difficult message to give to the affected employees, who have also done a very good job," says Jessica Span, managing director of Volvo Car Sweden to Dagens Industri .

Launched in 2022 as a further development of the previous platform Sunfleet, Volvo On Demand aimed to create a "Spotify with cars". Despite a fleet of 1,200 cars and 200,000 users, the service failed to make a profit and therefore closes completely.

– The decision has been taken against the background of a more challenging macroeconomic environment, which resulted in increased costs to run the service with the quality that Volvo Cars requires and our customers can expect, writes Volvo.

Translated into ordinary Danish, this means that Volvo could not get the idea to live on market terms.

READ ALSO: 48,000 have ordered an electric car from 2007 that does not exist yet

Unlike Sunfleet, which was profitable, On Demand has been a loss-making business for Volvo.

However, according to Jessica Span, it is difficult to compare the two services because they existed under different economic conditions.

– It is difficult to compare, as it has been in different times with different conditions both in terms of cars, interest rates and costs for, for example, parking, she says to Dagens Industri.

Customers can continue to book cars through Volvo On Demand until 13 January next year, after which the service will close permanently. The service never reached Denmark – the closest was Helsingborg.

The money that Volvo gets released now may have to be used to fix a serious error that has affected 119 cars in Denmark. Read more about it here .

Read more exciting news from and about the world of motorsport right here!

Latest

Don't miss

These cars from the 1980s have increased in value the most

Got a car from the 1980s hanging around? Yes,...

All electric cars are banned from the race track for safety reasons

Willowbank Raceway is the latest racetrack to ban electric...

The Buick Grand National is resurrected with 1,248 horsepower

In 1987, the Buick Regal Grand National assembly line...

Sweden will introduce strict Danish requirements for vintage cars

In Sweden, vintage cars older than 50 years are...

Tom Cruise will revive iconic car movie after 34 years

Tom Cruise both wrote history for and starred in...
Boosted Magazine
Boosted Magazine
Boosted in Denmark has over a million unique users, surpassing two million sessions, and accumulating over seven million page views each month, and our platforms has become a hub for automotive enthusiasts. Now you can enjoy our content in English too! Enjoy our free car news - every day. Want to talk to us? Write an email to boosted@boostedmagazine.com
spot_img

Mercedes pays dealers to get rid of electric cars

Mercedes dealers have already complained that it is more than difficult to sell electric cars. Now the brand gives them 3,000 dollars per car...

Tesla is worth more than these 28 car brands – combined

Tesla's share price took a decent jump upwards when Donald Trump was elected as the President of the United States. Enough to make the...

The Volkswagen ID.7 Tourer takes the title of Denmark's best company car

For the second year in a row, the Volkswagen ID.7 Tourer wins the award as Business Car of the Year, chosen by Business Danmark...

Kevin Magnussen announces the future in Formula 1

From the 2025 season, Danish Kevin Magnussen will not be a Haas team member. Still, a future with the team may be lurking. Now...

Volvo has sold the car brand for 5 billion kroner

Volvo has sold its entire ownership stake in sister brand Lynk & Co. The deal brings the Chinese car brand 5 billion Danish kroner....

Busy car giant has hired 200,000 in 3 months

At BYD, they are constantly fighting with Tesla to deliver the most electric cars. This means busyness and 200,000 new employees in 3 months....

The Tesla Cybertruck is being recalled for the 6th time this year

For the sixth time this year, the Tesla Cybertruck is being recalled. This time the problem is apparently so serious that new software is...

Lewis Hamilton moves in after Schumacher

As the first of Ferrari's Formula 1 choirs since Michael Schumacher, Lewis Hamilton will live in founder Enzo Ferrari's home. Lewis Hamilton moves into...

The municipality can shut down the Danish motorfest completely

Allingåbro Motor Festival lives on borrowed time. The organizer fears having to leave the land on which the party takes place. Allingåbro Motor Festival...

New survey: This is why Danes avoid electric cars

Although the electric car may be cheaper in terms of immediate operating costs, many Danes still stay away, shows a new investigation by the...

The police's illegal Tesla has been idle for 5 years

The police in Belgium bought two Teslas five years ago. But one of the cars does not yet have a meter, it says. Five...

The world's most expensive Ford Escort Cosworth has a new owner

A white Ford Escort Cosworth has just gone under the hammer at an auction in England. The price absolutely blew away, says auctioneer Gary...
footer.txt Viser footer.txt.