Office Hours: Volvo’s Subscription Model, The Debit Generation, Exploring Job Options, and Pre-Seed Investing

The Prof G Pod with Scott Galloway

Vox Media Podcast Network

Careers, Entrepreneurship, Business

4.6 • 4.1K Ratings

🗓️ 1 November 2021

⏱️ 21 minutes

🔗️ Recording | iTunes | RSS

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Summary

Scott answers a question about Volvo’s subscription service and offers a prediction for where the auto industry is headed. He then explains how ‘buy now, pay later' services deceive customers into debt, and gives advice for how to approach leaving your company. Scott also discusses the factors to consider when investing in pre-seed companies, and how to make smart money decisions with your partner. Music: https://www.davidcuttermusic.com / @dcuttermusic Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Welcome to the PropG Pod's Office Hours. This is the part of the show where we answer your
0:13.2	questions about business, big tech, entrepreneurship, and whatever else is on your mind. If you'd
0:18.1	like to submit a question, please visit officehours.prophGmedia.com. Again, that's officehours.prophGmedia.com.
0:26.0	This question, and again, I do not see these questions before I hear them.
0:29.9	Hey, PropG. Richie here from AMI. Just wrapped up my second sprint with you in section
0:35.0	four. This one on strategy. On Tuesday, we were talking a little bit about rundles in the
0:41.8	car market. Why do you think Volvo is the only major car company to continue to offer a
0:51.1	recurring bundle for their vehicles where you can turn in your Volvo SUV every year and get a
0:59.9	new one? It looked like Lincoln was starting to get into this space during the beginning of the
1:05.2	pandemic with their hands-free delivery of vehicles. But why do you think more companies have
1:11.2	gotten on board with this? Interested in hearing your thoughts. Thanks for the question, Richie.
1:16.3	I love this stuff. Volvo's subscription service is branded as Care by Volvo. Starts at about
1:22.6	a thousand bucks a month and includes maintenance protection for tires, wheels, excessive wear,
1:26.8	and insurance coverage. The subscription offers a single vehicle model rather than a range of
1:32.3	models such as some failed attempts at other car subscriptions. BMW, Audi, Ford, Cadillac, Mercedes,
1:38.0	Benz all shuttered their subscription offerings, and they all had one thing in common. The ability to
1:42.9	swap vehicles on a regular basis at a pricey rate. Your question, why hasn't Volvo
1:50.7	the only one here or why aren't more doing this? I think it's the classic innovator's dilemma.
1:55.4	I haven't thought a lot about this, but usually my best thinking comes from when I don't think
2:00.5	a lot about stuff. The innovator's dilemma is that you start protecting your legacy assets.
2:06.4	You start looking at your existing business and thinking we've made this huge investment and
2:09.8	we need to monetize this investment and you run all strategic decisions and tactics through your
	...

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