Jaguar Land Rover (JLR) has launched ‘Pivotal’, a new car subscription service in an attempt to break into the subscription market and provide consumers with flexible access to a variety of premium vehicles.
According to the company, members will receive a new car every six months depending on how many miles they cover, although should they wish to upgrade or downgrade their vehicle outside of this time, a further currently undisclosed charge will be incurred.
With a joining fee of £550 including VAT, the membership is split into four categories – Blue, Indigo, Violet and Ultraviolet. Starting with the most basic plan, the Blue subscription costs £750 a month for a Land Rover Discovery Sport, Jaguar F-Pace or Range Rover Evoque. The costs and range of available models increase to £1,150 for the Indigo subscription, £1,350 for Violet and £1,600 for Ultraviolet.
The new Land Rover Defender is set to be introduced at a later stage together with two plug-in hybrid electric vehicles (EV).
The monthly fee includes a range of additional services such as manufacturer warranty, roadside assistance and comprehensive insurance for the member and one other named driver.
Originally, JLR launched a trial of its car subscription service called ‘Carpe’ in 2018 which was for a 12-month contract with unlimited mileage. However, now the trial period is over, the company has rebranded the service and released it in full as ‘Pivotal’.
Rawdon Glover (pictured), 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.
“Through Pivotal and our network of retail partners, even more drivers can get behind the wheel of a Jaguar or Land Rover and we’re excited to see how this new initiative fits in a post-pandemic world where personal transport will undoubtedly be in more demand.”
Connected car insurance
However, JLR is placing restrictions on the service as drivers will need to have proof of no insurance claims for a minimum of two years and have no more than six points on their licence, among other limits.
Working off a similar sentiment, Groupe PSA has begun offering an insurance model that rewards policyholders for responsible driving behaviour and allows them to benefit from a discount on the standard insurance premium.
The service automatically calculates an individual’s driving score and informs them on a monthly basis, providing advice to improve driving behaviour and maximize their insurance premium discount.
Data on the individual’s driving behaviour is collected through a device installed on the vehicle, and is currently fitted to more than five million of the Group’s vehicles.
‘Car on Demand’
Some 18% of drivers prefer subscription services to ownership, with these individuals are predicted to account for around 10% of all new sales in the US and Europe by 2025, predicts JLR. This is equivalent to 16 million vehicles.
Another company seeking to take advantage of this demand, mobility services operatory Free2Move has launched a car subscription offer named ‘Car on Demand’.
Highlighting the potential benefit for company fleets, the service is available for professional customers enabling them to respond to temporary peaks in activity for employees.
With more than 2,000 vehicles available, Car on Demand’s online subscription includes one annual vehicle change, maintenance including inspections and servicing, breakdown assistance and contactless delivery and pick-up at a desired location.
The cost of the monthly subscription starts at around €325 (£291), and the service is set to expand upon the company’s existing mobility offer in France which includes car sharing, short, medium and long-term rental, access to electric vehicle (EV) charging stations, parking and connected fleet management.
