Peugeot in the UK has launched its ‘Mu’ mobility rental scheme as a pilot led by two dealerships in London and Bristol. The scheme has already debuted in continental Europe and is designed to offer a flexible ‘mobility solution’ to urban dwellers, as well as promote the Peugeot brand and its products to potential customers.
The firm maintains that the scheme is ground-breaking in that it offers Mu account holders (who do not have to be existing Peugeot customers) the opportunity to rent from Peugeot’s wide range of product offerings (which embrace bicycles, scooters, cabriolet coupes, MPVs and vans – and electric cars when the iOn arrives) on pre-booked flexible time terms that can include half-days.
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The initiative is seen by Peugeot as one that enables customers, especially in urban areas where car ownership may come with added drawbacks, to utilise Mu as a means to more efficiently meet their overall transportation needs through occasional rental.
Peugeot says Mu differs from traditional car hire due to the level of service offered (accessories such as roof boxes are available and all vehicles offered are under six months old). Also, you will know what vehicle you are getting and it will be appropriately prepared for you without the kinds of uncertainties to vehicle condition said to be associated with car club rentals by the hour.
Mu participants open an account online, receive a Mu card and then purchase Mu points (or credits) online that they can exchange for rentals. There will be special signage inside the dealership, a Mu reception desk and also point of point of sale advertising material that will direct customers to the Mu area.
Peugeot cites a number of examples where it sees Mu rental appeal – such as a larger vehicle for a family holiday, a van to assist with DIY loads or a cabrio coupe for the weekend getaway.
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By GlobalDataMu is already working in Brest, Lyon, Nantes and Rennes in France and in five dealerships in Paris and in the capital cities of Germany, Spain and Italy, each utilising the facilities of the Peugeot dealer network. The new mobility service will be deployed in nine European countries between now and 2011.
But Mu is clearly designed to operate as more than a glorified rental scheme – an underlying purpose is to promote brand loyalty, reach out to new customers and also to get potential car buying customers driving the latest products.
UK Managing Director Jon Goodman emphasises the role of leveraging the dealer network and the scheme’s learning objectives. He says he is confident that Mu will naturally generate some sales leads in the future and that he could sell it right now to corporate customers, but that’s not the point.
“This is running as a pilot and that’s very, very important,” he told just-auto. “There are things that we can tweak and change and we want to be able to adapt quickly to what the market wants.
“This is a retail proposition, but it could of course be attractive to corporate customers in the future. Right now we want to learn more about people’s transportation needs – especially in the urban environment – and how a scheme like this can fit in to provide real-world mobility solutions. We are not setting targets or anything like that. Of course, this will bring people – and potential car buying customers – into the dealership and into contact with the product, but it’s certainly not a hard-sell thing.
“In part, we hope that this can also help to demystify the dealership, get people to see the dealership in a slightly different way – as a more open kind of place.
“And the professionalism and expertise of the dealer clearly underpins this initiative.”
The choice of two Robins and Day Peugeot dealerships for the UK pilot brings Peugeot a sizeable partner already very familiar with daily hire operations. The London dealership is also a highly visible one situated on West London’s busy ‘Chiswick roundabout’. It is also already highly geared up to the admin that comes with the daily hire business.
Do existing Peugeot customers receive Mu points? No, but there is clearly a big ‘loyalty points’ opportunity as well as other cross-selling marketing opportunities presented by the Mu platform. Goodman is well aware of the possibilities, but wants Mu initially to provide valuable feedback to the company on what the market needs and where Peugeot can provide something new.
“This is a part of our effort to address the changing urban environment,” Goodman stresses.
“Peugeot is leading the race to find solutions to current economic and environmental challenges. Never before has the rental customer been exposed to such an extensive product range, combined with periods of loan that offer flexible mobility and convenience.”
Two sorts of customer for Mu are being sought initially – people from the Peugeot dealership’s existing customer database and local people more generally (who may not even own a car and are not existing Peugeot customers). Under Mu you can get a scooter for the day for GBP18 or an RCZ Sports Coupe for the weekend at GBP140.
The iOn electric car – which launches later this year – offers a new possibility when you factor in things like being exempt from the London Congestion Charge (a flat fee applying to vehicles that venture into central London – electric vehicles are exempt).
Peugeot executives also highlight the Mu scheme as fitting in to a broader renewal of the brand led by new product such as the RCZ as well as low CO2 models. The 3008 diesel hybrid coming in 2011 will boast an average 99g/km of CO2 and 70 mpg. Peugeot says that a plug-in 3008 diesel hybrid due in 2012 will achieve 50g of CO2 and the equivalent of 141 mpg. A sub-100g CO2 variant of the RCZ is planned and the BB1 small urban electric runaround is all but confirmed (Peugeot is finalising the ‘definition of the product’).
So, the MU proposition could look stronger bolstered by upcoming product when the pilot scheme – which will last for this year – eventually turns into a full UK launch.
Mu in Europe is expected to have 10,000 customers by the end of 2010 with some 200 cities planned to be represented by Mu by the end of 2012.
Glorified rental scheme or clever marketing initiative? Perhaps both, but it is at least evidence – alongside new product investments – that Peugeot is trying hard to get a competitive edge. If nothing else, this scheme could help to build brand loyalty and help Peugeot get to know its urban customers and their transportation needs better. And it’s not difficult to imagine car salesmen relishing the prospect of throwing in a few Mu points to clinch a sale.
