The car ownership model is changing due to the introduction of leasing options, the dynamics of the used car market and the introduction of car subscription services. Manufacturers such as Volvo have dipped their toes into this market directly, but specialist providers of subscription services are also emerging.
When compared to leasing, car subscriptions offer more control for the customer from type of vehicle to duration of the subscription and when it can be ended.
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Launched to meet the growing demand for car subscription services in the UK, Pivotal offers premium fleet vehicles including Jaguar Land Rover (JLR) models. The service provides delivery right to the customer door, with the option to pause the subscription after an initial 3-month period and 14 days’ notice.
We spoke with John Murphy, managing director at Pivotal, to learn more about the company and to discuss how the industry’s car ownership model is changing.
Just Auto (JA): Could you provide some background on the company?
John Murphy (JM): With the ambition of pioneering the future of mobility and service, we launched Pivotal within InMotion Ventures, the venture capital and innovation division of Jaguar Land Rover. Since its inception, we’ve been able to leverage the business to develop groundbreaking ideas in the luxury mobility sector.
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By GlobalDataInitially introduced in 2019 as Carpe, we rebranded and restructured the service in 2020, which was a transitional moment that enabled us to gain momentum and carve out our niche in the market as a high-end, tailored, and efficient service.
Pivotal has demonstrated significant growth since its launch, achieving a 750% increase in our subscriber base within the first year. We are building on our initial achievements, with a focus on expanding the business in line with our evolving model and the broader shifts in the luxury mobility and services industry.
What vehicles are available to customers, and why were these vehicles chosen?
We offer four subscription tiers to cater to broader audience groups. They start from GBP850 per month, featuring a selection of 10 different models. By catering to a wide range of preferences and needs, we can ensure that each subscriber member finds a vehicle perfectly suited to their lifestyle.
The vehicles available in our subscription service are carefully chosen to offer a variety of high-quality options, including the latest models from Jaguar Land Rover. These vehicles are selected for their quality features, such as signature craftsmanship, exceptional materials, and intelligent design, as well as their reliability, and ability to provide an exceptional driving experience. Customers can enjoy a superior mobility solution, including the flexibility of driving different vehicles, through a personalised onboarding process, without the long-term commitment of ownership.
How is the company changing the car ownership model when it comes to luxury vehicles? And why do you think that customers are embracing this service over car purchasing and leasing?
Car subscription services are revolutionising the automotive industry by catering to today’s on-demand culture. Customers want choice and are embracing services which perfectly align with busy, flexible lifestyles and evolving preferences.
A recent PwC report shows that almost half of Brits (49%) are now considering an automotive subscription, proving a shift in customer preferences and buying habits when it comes to the luxury of flexibility. This is not only the case for their cars, but consumers are adopting this in every part of their lives. For example, TV, fashion, meals, you name it – flexibility is key.
Car subscription services are revolutionising the automotive industry by catering to today’s on-demand culture
The model that we have introduced at Pivotal simplifies the car acquisition process, allowing customers to drive their desired vehicles without needing extensive automotive knowledge – or time!
In my view, subscription services are transforming car ownership as, unlike traditional ownership, they allow drivers to easily swap vehicles to suit their lifestyle, adjust plans if their needs change, providing short-term or adjustable subscriptions and ensuring they are not tied for years to a car they no longer want. Customers also value being able to try out different models and find the perfect fit for their day-to-day needs, without committing to a purchase or lease.
Additionally, as urban living and remote work become more common, the need for car ownership is decreasing. Pivotal’s service includes all necessary components such as insurance and maintenance, ensuring a hassle-free experience. This is particularly beneficial in areas like London, where securing insurance for premium vehicles can be challenging.
In this way, subscription services are setting a new standard in the automotive industry for not only individuals but also businesses looking for easy fleet management of commercial vehicles.
Why do you think customer satisfaction is higher with this service compared to others?
Customers are central to every decision we make at Pivotal. We’re proud to offer a highly personalised experience that caters to the unique mobility needs of each subscriber. Unlike the lengthy and stressful process of buying a car, we streamline the experience, getting customers behind the wheel in as little as two weeks, including a complimentary home delivery service. This efficiency saves customers valuable time and eliminates the hassle of visiting multiple dealerships and negotiating deals.
Customers are central to every decision we make at Pivotal.
Our member-centric approach ensures that customers receive tailored support and a personal touch at every step. Pivotal’s team of experts builds strong relationships with each customer, efficiently addressing their unique needs. This high-touch experience places the customer at the heart of everything we do, setting us apart in the car subscription market.
Pivotal subscriptions also include 24/7 roadside assistance, servicing and maintenance through normal use, meaning drivers can rest assured that they will have tailored support if they have any questions concerning their vehicle.
Flexibility is another key driver of customer satisfaction. Subscribers can switch between high-end vehicles and pause their subscription with just 14 days’ notice after an initial three-month term. This allows customers to adjust as their needs change.
All of these factors contribute to Pivotal’s Net Promoter Score (NPS) of 71, a metric used to measure customer satisfaction, and is significantly higher than the automotive industry average of 35, reflecting the high level of customer satisfaction and loyalty we offer. Our dedicated customer support team is always ready to assist, ensuring a smooth and seamless experience, consistently exceeding expectations with top-tier customer satisfaction scores.
What do you see the future holding for this market?
The future of car subscriptions promises greater personalisation, with flexible options such as short-term rentals and on-demand access to a variety of vehicles. Advanced technologies, including smart car features, will boost customisation and enable remote management. I also think that AI will play a significant role by recommending vehicles and adjusting based on driving habits, creating a more tailored and user-friendly experience.
On the topic of tech, I think mobile apps will evolve to become more intuitive, offering enhanced features for managing subscriptions, scheduling maintenance, and customising your ride.
The years to come are going to be really exciting, and I’m keen to see the innovations that lie ahead both for Pivotal and the broader mobility industry.
