Jaguar Land Rover targets mobility market with car subscription scheme
The new venture is the latest step in JLR’s gradual transition to a provider of mobility services, and follows a similar scheme called Carpe, launched in 2018.
Users of the new service pay a monthly fee for the vehicle’s rental, which covers the cost of insurance, tax, servicing and any repairs needed. The scheme also allows subscribers to change their car every six months - much more frequently than most car leasing schemes - to “suit their changing lifestyle, whether it’s a new job, growing a family or the need for greater flexibility”.
The new Defender will be added at a later date, as will the recently revealed plug-in hybrid versions of the Discovery Sport and Range Rover Evoque.
There are different membership tiers to choose from - Blue, Indigo, Violet and Ultraviolet - ranging in price from £750 to £1600 per month. Users are able to switch between the tiers easily as needed, and can also choose to pause their membership on a monthly basis. There is also a one-off joining fee of £550.
According to JLR, some 18% of drivers prefer ‘no-commitment subscriptions’ to owning their own vehicle, and it estimates that subscription models will account for 10% of all new car ‘sales’ - roughly 16 million vehicles - in the US and Europe by 2025. Pivotal is aimed at the 20% of young professionals who wouldn’t ordinarily own a car.
The brand adds that, in trials for the new scheme, 80% of members had not previously owned a Jaguar or Land Rover, making it an effective way of attracting new customers to the brands.
Rawdon Glover, managing director of JLR UK, said: “The future of mobility has never been more in the spotlight and our customers are increasingly looking for more flexibility in the way they interact with us.
“We are constantly looking at new and innovative ways to deliver the best solutions for our customers and adding the Pivotal subscription service to our portfolio is the latest in a line of new services that put our customers’ needs first.”
The Pivotal scheme is backed by InMotion, JLR’s venture capital and mobility arm, and forms part of the brand’s ‘Destination Zero’ strategy, which aims to eradicate congestion and road accidents.
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