CEO Update - March 2024
With this first CEO Update of 2024, I’ll take a moment to reflect on what is most important to us: the realization of our Purpose.
"To transform communities by connecting people with places in a way that’s affordable, convenient, inclusive and sustainable."
On all measures, 2023 was a very good year. High scores from members for overall satisfaction were matched by high engagement and satisfaction scores from employees. Per my last update big milestones during the year included adding our 1,000th vehicle, our 30,000th member, and deploying more EVs and child seats into the fleet.
I take this opportunity to thank the Modo team for all that they do to ensure our co-op continues to make you proud and serve your needs.
Affordability has long been at the top of the list when we ask you what’s most important. I expect we can agree that’s truer now than ever. We are proud of the fact that we have been able to hold the line on price increases for five years, since 2019.
Today though, under the relentless pressure of rising costs in nearly every part of our business, I want to let you know that we will be implementing some changes to pricing from April 1, 2024. There will be changes in both pricing structure and values.
The structural changes are aligned to inputs we received from the Modo Advisory Council, with the strongest message being to simplify. A big thanks to them for their thoughtful guidance. Simplifications in the revised structure include:
- A single km rate to replace the current different values for the first 25 kms and a different value thereafter. Easier math if you like to do the numbers in your head.
- The trigger rate for the fuel surcharge has been significantly increased so that it will rarely activate. Unless fuel prices see an extraordinary surge, this cost should entirely disappear from you invoice for the foreseeable future.
- We’ve reset Day Tripper rates, so that they match for all member categories. Member-owners (Modo Plus) will benefit from a significantly increased number of included kms per day, making single or multiple day use of a vehicle more affordable.
In terms of value changes, that sees hourly rates for all vehicle and member types increase by $1 per hour. Day Tripper rates for Daily Drives becomes $100 and for Large & Loadables $135 for all members.
And that’s it – straightforward, simple and in round numbers!
Much has changed since 2019. The pandemic played havoc with global supply chains, causing new vehicle availability to drop significantly and vehicle prices to soar. And they have remained significantly elevated compared to pre-pandemic.
And it wasn’t only vehicles. In a period of rapidly increasing inflation, most of our largest operational costs have grown at rates not seen in years – salaries and wages; maintenance and repair of vehicles; and parking, to note some of the most impacted.
These changes in structure and value permit your co-op to continue to be there for you when you need us, as we have been since 1997.
