Motorcycle as a Service?
That’s not quite accurate but it seems similar to the way Big Tech is going with SaaS (Software as a Service) which is basically a subscription fee structure as opposed to a one-and-done license fee.
If you are unfamiliar with what I am talking about, here it is. KTM recently started something new with the 890 Adventure R. All the techy doodads are included on the bike. For the first 1500km (900ish miles), they are all turned on. It is called ‘Demo Mode.’ After the miles have been exceeded, you can either not have the extra techy whatnots or pay to have them turned back on.
I can’t say I am surprised at this. Both BMW and Tesla have equipped vehicles with options you have to pay to unlock.
I believe Tesla is a one-and-done but there has been anecdotal cases where those options are turned off for the next buyer in the case of a used sale and the purchaser has to give Tesla more money to turn on what they thought the car already had.
BMW raised eyebrows when news came out that they started charging a monthly/annual fee for options like heated seats. This wasn’t for the US market (yet) but it is a thing and it could spread across global markets.
I don’t have an issue with what KTM is doing. Equipping all bikes the same and then giving purchasers the ability to turn on options they want makes sense from a manufacturing efficiency standpoint. Sometimes you buy a bike that you wish had options after owning it for a while and you can’t add them after the fact. This would remedy that issue and not require you to take a loss on the current bike (excluding how the market is right now) to acquire a bike with the options you want.
Motorcycle enthusiasts spend tons of money on aftermarket accessories for their bikes. This isn’t really that much different except you don’t get something shiny and new from Amazon/Revzilla/Interwebs to install. I get that people feel like they are being ripped off by KTM by taking away options if they don’t pay extra. KTM isn’t doing that, though.
If you know you want the functionality that ‘Demo Mode’ provides, you can pay for it when you buy the motorcycle. If you don’t want that functionality, you don’t have to pay for it. ‘Demo Mode’ is exactly what it is. It is an extended test ride of things you otherwise wouldn’t have the ability to test out. The 890 Adventure R is particularly well-suited for this strategy. Even if you get a test ride from a dealer, they aren’t going to let you thrash it offroad. For the first few miles of ownership, you can play as hard as you want and decide if the functionality is worth it to you. A trip to the dealer to unlock the options you want is all it takes to make it happen. Outside of feeling ripped off, there’s really no downside.
Except…
This could be the beginning of what Tesla and BMW are doing. OTA (over the air) updates aren’t a thing for motorcycles yet as far as I know. If they do become available, options that could be turned on could also be turned off without a trip to the dealer. You could be required to pay monthly for your lean-sensitive ABS or have to re-pay for options when acquiring a used bike. I don’t know if it will happen but it certainly could. What are you going to do? Not buy the bike?
I would like to have OTA updates for my Goldwing as using a flash drive to update software is a bit clunky and you must be aware there is an update to perform. (Note: there hasn’t been one since Honda released Android Auto support in 2020). However, opening the door to turning off functionality isn’t really something I want to make possible.
Circling back to the title of this article. Software companies realized they could change their billing model and milk their customers every month/year for the same product instead of just once. Ever since SaaS has become a thing, every other industry must have been looking at Tech’s success and wanted a piece for themselves.
Automotive and powersports companies are more similar to software companies every year due to complexity of their products. It is a slippery slope. I’m not paying Adobe $53 per month for use of their software and I’m not going to pay any company a monthly fee for options on my bike. I would pay to unlock features on a bike if I wanted them and there were no takebacks. Once you take a step back and realize ‘Demo Mode’ is exactly as it is named, it isn’t so bad. You just have to get over the feeling of being scammed by KTM by teasing you with options you haven’t paid for yet.
