A few years ago, car subscription services were being touted as the future. The theory was that drivers wouldn’t want to own their vehicles outright or via conventional lease. They would shift to the ease of a single monthly all-inclusive subscription payment with fewer commitments. Since then, the idea has receded from the spotlight, but one company sees a bright future – JLR. I tried JLR’s Pivotal subscription service to find out how its formula could be different.
The Rise and Fall of Car Subscription
Subscriptions particularly came into focus as part of the transition to electric cars. If you aren’t sure whether the new drivetrain is right for you, being able to sample with fewer commitments seems sensible. However, this dream didn’t turn into a reality. Volvo killed its “Care by Volvo” subscription service in 2024, and British poster child of the new flexible revolution in electric car ownership Onto went into administration in 2023.
Nevertheless, there is evidence that traditional car ownership is becoming less popular with younger people. A survey by Deloitte of 1,500 UK consumers revealed that more 18-34-year-olds preferred car subscription services than older age groups. The trends do point towards this type of ownership, with increased urbanization of populations and more flexible work patterns.
This is where JLR’s Pivotal comes in. The service was developed by the company’s in-house incubator, InMotion Ventures Studio. At the same time as Pivotal was being built, a more traditional rental service called The Out has been rolled out, plus projects that have already been sold to new owners. These include the Havn ride hailing service, sold to Blacklane, and a vehicle delivery service.
“Pivotal is an all-in-one service, with insurance, maintenance, roadside assistance, service, delivery and pickup, for a monthly flat fee,” says Jasdeep Sawhney, MD InMotion Ventures Studio. “It’s hyper flexible, so you can pause the subscription when you don’t need the car. We can come pick it up from you, and when you want to have it again, we’ll deliver either the same car or a similar or different car if you want to choose something else in the JLR brands.”
Pivotal Car Subscription In Action
The Pivotal service starts with an onboarding process where the prospective subscriber discusses their options with a human representative. There are four tiers to choose from and (at the time of writing) ten different models available, although this changes. For example, Jaguar F-Type sportscars were on the books for a while but are being phased out as the model is discontinued. The specifications tend to be near or at the top of the trim levels. For example, I borrowed a fully loaded Range Rover Autobiography for my trial. The vehicles are brand new and go back to JLR after 18 months.
After the initial discussion, the subscriber goes through an eligibility check, which looks at insurance claims and affordability based on data obtained through open banking for the last three months. This isn’t a credit check, however, so if you don’t make the grade, it won’t affect your rating. There is a £550 ($700) joining fee, then subscriptions range from £950 ($1,200) to £2,150 ($2,700) per month. It’s more expensive than a lease but includes everything and after three months you can pause for one month or indefinitely. So if you are called abroad for six months on business, there’s nothing to pay until you come back and request a car again.
Sawhney sees Pivotal as a way for JLR to expand its reach, rather than giving existing brand customers more options. “Pivotal customers are 80% new to JLR,” he says. “We’re finding customers who want flexibility and are willing to pay for it. They like the luxury experience that they get along with a luxury vehicle from one of our four brands. We have thousands of customers already.”
Car Subscription: Perfect For Electric Anxiety?
Pivotal could really come into its own when Range Rover launches its first all-electric model later in 2025 and the electric Jaguar due in 2026. However, Sawhney didn’t commit to either car being in the fleet as soon as they arrive. “If we see customers wanting to try electric in a subscription model, we’ll happily put that in our fleet,” he says, although the Pivotal renewal team I talked to after my loan was over claimed they had already received plenty of enquiries about the electric Range Rover. “A lot of our customers want to try new technology,” adds Sawnhey.
This fits with the young demographic Pivotal has discovered. According to JLR’s figures, the average age of Pivotal customers is 45, which is 20 years younger than those who buy JLR cars directly. “Younger customers are more likely to want to use vehicles rather than own them,” says Sawhney. “They are high net worth customers who could very well buy a Range Rover anytime they want but prefer to have the flexibility. It’s also a psychographic thing. They want to be able to change cars whenever they feel like it. Today they want a Range Rover, and tomorrow they want a Jaguar F-Type. Or they go abroad for four months in a year, so they don’t need a car in the UK.”
The model appears to be working for Pivotal. “Customer demand is growing 25 to 30% year on year,” says Sawhney. However, he doesn’t see subscription replacing ownership necessarily. “Retail will still be the predominant mode of ownership. However, we can’t say for sure.” If the market does flip, Pivotal will be there to serve the change. He sees this as part of the shift towards a shared economy. “There are now lots of different business models for car usage. With some you use the vehicle for a few hours, or a few days. With Pivotal it’s a few months, up to 18 months. Then you have a lease vehicle for three years.” Another model might be hotels that have a few cars parked outside for residents to use when they want to.
Pivotal subscribers don’t appear to be using the service to save money, however. “Some of our clients have spent six figures over three years on subscription,” says Sawhney. “On average, we see monthly subscription of around £1800 ($2,300). We have a retention rate of about 90%.” This could be a key factor in explaining why Pivotal is thriving where other subscription services have foundered – the high luxury focus. The cars aren’t owned by Pivotal, either. They go back to JLR after 18 months and are then sold for other uses. Pivotal also shares vehicles with its The Out rental service, which helps maximize utilization. One of the factors in Onto’s demise was that it owned its fleet, making its business extremely capital intensive.
Car Subscription For Luxury Rebranding
Even if EVs won’t be the primary focus of Pivotal, JLR’s incubator sees electrification as a potential focus of future new ideas. “We’re looking for ways we can help JLR succeed in electrification,” says Sawhney. “We’re also looking at how we can build business in a circular economy.” However, the bespoke nature of Pivotal means AI is of less value than for some other services. “We want to have actual human beings. Speaking to people in customer service is a luxury. Our customers will always be one phone call away from speaking to somebody, and not just anybody, but the same person they spoke to last time.”
“It’s going hard to plan,” concludes Sawhney. “We’re growing the base of customers who have experienced our products. We’re acquiring a whole new cohort of customers who would probably not have considered a JLR brand before, because three years is a big commitment to make and they’re traveling around the world. This gives them a way to experience the best products that we have in a way that they choose to.” As JLR reinvents itself as a “House of Brands” focused on high luxury, and Jaguar controversially changes its image entirely, a car subscription service could be key to convincing new customers that the cars live up to expectations – particularly radical new electric designs. After all, nobody wants to make an expensive mistake they have to live with for years.
