2 July, 2020
As more people choose flexible monthly payments over one-off bills, Jaguar Land Rover is changing the way we use vehicles – with a premium car subscription service.
Britain’s biggest car maker has set up the service, called Pivotal, so customers can experience either the latest technology from the smarter, more refined and premium Jaguar range, or trial the unrivalled breadth of capability, versatility and luxury offerings of the Land Rover range, swapping between models when it suits them.
The Land Rover Discovery, Range Rover Sport are all included, with new models being introduced at a later stage, including the new Land Rover Defender and two new plug-in hybrid electric vehicles: the Land Rover Discovery Sport and Range Rover Evoque PHEVs. Customers can also choose the multi-award winning all-electric Jaguar I-PACE to experience driving with zero-tailpipe emissions, or alternatively the Jaguar F-PACE. The service will allow members to adapt their vehicle choice every six months, to suit their changing lifestyle, whether it’s a new job, growing a family or the need for greater flexibility.
Pivotal will initially be looking to grow and integrate with approved Jaguar and Land Rover retailers to supply the vehicles.
The new service offers an alternative to the traditional vehicle ownership and leasing plans. A single monthly payment covers the rental cost, insurance, tax, servicing and repairs – leaving just fuel to pay for. There are multiple membership tiers available and members can put their subscription on hold from month to month.
Already 18 per cent≠ of drivers prefer no-commitment subscriptions to paid-up ownership. These are predicted to account for nearly 10 per cent of all new sales in the USA and Europe by 2025 – equivalent to some 16 million vehicles*. The early trials have proven this as an effective way of encouraging new customers to try the brands, with 80% of new members not having previously owned a Jaguar or Land Rover vehicle.
Isobel Dando, Managing Director of Pivotal said: “The world is changing, and Jaguar Land Rover is changing with it, adapting to the needs of our customers as well as supplying those who would not normally consider our cars and SUVs.
“Traditional car ownership may not provide the flexibility required by some in the modern world, and with Pivotal we are able to offer an alternative, premium option. Our customers love driving and a subscription gives members chance to experience living with different vehicles – whether their priority is lower-emissions, advanced safety technologies, versatility or design, Jaguar and Land Rover vehicles have plenty to offer.”
Rawdon Glover, Managing Director of Jaguar Land Rover 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.
“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.”
Pivotal is backed by InMotion – Jaguar Land Rover’s venture capital and mobility services arm. It aims to provide the most flexible all-inclusive premium car subscription service, targeted at the 20 per cent of young professionals who wouldn’t normally own a car**.
Pivotal will secure Jaguar Land Rover a place in the Mobility-as-a-Service (MaaS) market, an industry forecasted to exceed $52 billion by 2027†, with the ultimate goal of achieving zero congestion and zero accidents as part of the Destination Zero vision.
For further information, please visit www.drivepivotal.com.
For more information about Destination Zero please visit www.jaguarlandrover.com/2019/destination-zero
≠ YouGov, (2018); http://info.zuora.com/rs/602-QGZ-447/images/Zuora_Report_Nation_Subscribed_UK_2018.pdf
*Frost & Sullivan, (2018); https://ww2.frost.com/frost-perspectives/your-next-car-could-be-flexible-subscription-model/
** Insight Advantage report, (2019); https://www.am-online.com/news/market-insight/2019/08/01/over-a-third-of-car-buyers-interested-in-subscription-services
†Juniper Research, (2020); https://www.juniperresearch.com/document-library/white-papers/maas-the-future-of-city-transport-2027
Pivotal is the new name for Carpe. Carpe was originally launched in June 2018 offering a 12-month unlimited mileage single-payment subscription to a Jaguar or Land Rover model with no deposit. The business model has now been adapted to fit into the new mobility world and now offers greater convenience to our customers with a 90 day minimum term and flexibility of payments and vehicle on a month-by-month basis.
To find out more about Pivotal, please see: https://www.drivepivotal.com
At InMotion, we are investing in the future of mobility and travel. Powered by Jaguar Land Rover, we are supporting entrepreneurs and innovators who change the way people move by paving the way for more sustainable transport options.
InMotion Ventures is Jaguar Land Rover’s venture capital fund. We invest in early-stage technology companies from Seed to Series B that change the face of urban mobility, support an active outdoor lifestyle and deliver unique travel experiences. We are based in London and invest globally. Our current portfolio comprises 17 portfolio companies.
InMotion’s mobility services arm Studio 107 works closely with our parent company Jaguar Land Rover to build new services in the urban mobility sector. The name Studio 107 is a nod to the 107% rule in motorsport. In qualifying, drivers who fail to set a lap within 107% of the fastest qualifying time are not allowed to start. Our goal is to select the ideas that play to our strengths and develop them into winning businesses.
To find out more about InMotion, please see: https://www.inmotionventures.com
About Jaguar Land Rover
Jaguar Land Rover is the UK’s largest automotive manufacturer, built around two iconic British car brands. Land Rover is the world’s leading manufacturer of premium all-wheel-drive vehicles. Jaguar is one of the world’s premier luxury marques, as well as being the first ever brand to offer a premium all-electric performance SUV, the Jaguar I-PACE.
At Jaguar Land Rover we are driven by a desire to deliver class-leading vehicles, providing experiences people love, for life. Our products are in demand around the globe and in 2019 we sold 557,706 vehicles in 127 countries.
We employ some 40,000 people globally and support around 250,000 more through our retailer network, suppliers and local businesses. At heart we are a British company, with two major design and engineering sites, three vehicle manufacturing facilities, an Engine Manufacturing Centre and soon to be opened Battery Assembly Centre. We also have vehicle plants in China, Brazil, India, Austria and Slovakia. Three of our seven technology hubs are in the UK – Manchester, Warwick (NAIC) and London – with additional sites in Shannon, Ireland, Portland, USA, Budapest, Hungary and Changshu, China.
We have a growing portfolio of electrified products across our model range, embracing fully electric, plug-in hybrid and mild-hybrid vehicles, as well as continuing to offer the latest diesel and petrol engines, giving our customers even more choice.
We are confident that our comprehensive strategy, exciting pipeline of market-leading vehicles and innovative approach to technology and mobility will see us continue to progress towards Destination Zero, our mission to shape future mobility with zero emissions, zero accidents and zero congestion.