Entrepreneur Scott Painter’s vision for a fully-electric car subscription service, Autonomy, hasn’t materialized as planned, leading him to embark on what he describes as his most challenging project yet.
Despite the initial goal to grow Autonomy’s fleet to 23,000 cars, it currently operates a modest fleet of 1,000 vehicles. However, Painter is shifting gears and launching a new venture, Autonomy Data Services (ADS), he shares in an exclusive chat with TechCrunch.
ADS aims to serve as a tech backbone, offering a software suite and valuable data insights to stakeholders interested in launching their subscription models for various types of vehicles. Painter is engaging in discussions with a wide spectrum of potential users, from car dealers to construction and agriculture equipment suppliers, noting that a preliminary version of the platform is already generating income.
With negotiations ongoing with several car manufacturers, some of whom have previously attempted their subscription models, ADS partners with Deloitte to administer the platform. This collaboration will see ADS benefiting from a share of the revenue for its software services, while Deloitte will advise clients on customizing the platform to fit their needs.
This strategic move marks another significant pivot for Painter, who has navigated considerable challenges since departing from TrueCar, the auto retail company he founded, in 2015. His journey included a venture into car leasing with Fair, a start-up that faltered despite substantial investment from SoftBank, leading to disputes with early backers and ultimately Painter’s resignation in 2021.
Painter faced a tough decision with Autonomy’s struggling subscription model, needing to persuade the company’s investors to stay the course.
He recounted having to make substantial personal sacrifices to keep the company afloat, including selling a $6 million beachfront property and liquidating other assets, in an effort to convert $32 million of Autonomy’s debt into equity for ADS.
Painter reflects on this challenging period as an unparalleled entrepreneurial endeavour, akin to “hugging the cactus.”
Acquiring Data for Six Figures
Autonomy’s valuation suffered a setback when Tesla’s price reductions significantly impacted its predominantly Tesla fleet. Despite his personal connection with Elon Musk, Painter’s efforts to seek more stability in pricing strategies were unsuccessful.
Painter observes that most major car manufacturers have already dabbled in subscription services, with many opting out. He proposes that these efforts failed due to a lack of in-depth understanding and data on customer engagement over time.
ADS plans to fill this knowledge gap, leveraging comprehensive data not only from Autonomy’s clientele but also from acquiring assets from the now-defunct Shift Technologies and other entities. This data acquisition includes insights from previous ventures like Fair and partnerships like Uber’s leasing service, Xchange, providing a rich dataset to predict customer behaviors, vital for pricing and subscription model sustainability.
Painter humorously remarks on the voluminous data acquired, described as an “astonishing avalanche,” emphasizing the significant investment in software development that these assets represent, now under ADS’s purview. He jokingly anticipates the reaction of SoftBank’s CEO to the bargain acquisition of these resources.
With $2.5 million already secured to back this initiative, Painter looks forward to attracting equity partners to extend ADS’s operational horizon, hoping to solidify the company’s position in the market with Deloitte’s collaboration.
Compiled by Techarena.au.
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