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Can JLR Pivotal Car Subscription Service Succeed Where Others Failed?
Jaguar Land Rover (JLR) has launched a new car subscription service called Pivotal, which is focused on high-end luxury and appears to be bucking the trend of previous failed attempts in the same space. The key difference seems to be a bespoke approach that prioritizes human interaction over AI-driven services.
Pivotal allows customers to lease cars for anywhere from a few months to 18 months, with no fixed commitment to a specific make or model. This flexibility is seen as particularly appealing to younger, high-net-worth individuals who crave the freedom to change their vehicle as often as they change their social media profiles. In fact, JLR’s data shows that the average age of Pivotal customers is 20 years younger than those who buy JLR cars directly.
Despite this innovative approach, there are still concerns about Pivotal’s ability to succeed where other subscription services have failed. One major advantage, however, is the company’s partnership with Jaguar Land Rover itself. This means that Pivotal has access to a wide range of vehicles, including some radical new electric designs that may be too costly for individual purchase.
In an interview with Forbes, Sawhney, JLR’s head of Pivotal, emphasized the importance of human connection in the car subscription space. He noted that AI-driven services are less valuable in this context because customers want to speak directly with people on customer service. This could be a key differentiator for Pivotal.
It remains to be seen whether this unique approach will pay off for JLR and Pivotal.
