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• Jaguar Land Rover launched a car subscription service called 'Pivotal' in the UK.
• Pivotal is aimed at affluent millennials who don't consider buying a car in the traditional sense.
• The subscription offers users the option to change their vehicle every six months.
It's abundantly clear that millennials, people born between 1980 and 2000, don't see cars as important as their parents' generation. With the advent of e-hailing services, public transport and many younger people able to work from home, purchasing a car has fallen down the pecking order.
But car manufacturers need to flog their new models, and one of those ways is a subscription service that is aimed specifically at affluent millennials.
Jaguar Land Rover is the latest car company to put their weight behind such a program that will allow customers to switch between JLR models every six months.
Called 'Pivotal', the program is seen as an alternative to traditional car ownership and leasing schemes. Available in the United Kingdom, users pay a monthly fee that includes rental, insurance, tax and any service and repair costs. A once-off joining fee is required.
JLR expects 10% of all vehicle sales in Europe and the United States to be attributed to subscription service models by 2025. That's close to 16-million vehicles.
In the UK, as part of the launch JLR will offer the Land Rover Discovery, Discovery Sport, Jaguar I-Pace, Jaguar F-Pace and all four models in the Range Rover line-up to customers.
'Owners' have maximum mileage threshold of 2400km a month and can have up to two named drivers in the contract.
"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," says Isobel Dando, Managing Director of Pivotal.
