"The Out", JLR’s car rental in London
London has not only introduced its Ultra Low Emission Zone, Jaguar Land Rover’s mobility services department InMotion introduced its car rental app The Out in the UK capital as well. Time for an interview with the Manager Director of InMotion Ventures, Sebastian Peck, about the new mobility service.
Could you briefly comment on why Jaguar is introducing car rental?
Sebastian Peck: “The Out has been developed by InMotion, Jaguar Land Rover's mobility services arm. InMotion investigates the changing landscape of premium mobility and develops new services with the potential to deliver incremental revenue back to the Jaguar Land Rover business. Our research pointed to a need for more convenient access to our products among a younger demographic living in cities. Our aim is to provide urban customers simple and convenient access through an on-demand premium car booking service. The Out delivers anywhere in Central London, covering zones 1-3 as well as Heathrow, Gatwick and London City airports.”
Do you see the decline of car ownership in general and in London in particular reflected in the sales of Jaguar?
“InMotion spotted an opportunity to create more flexible, on-demand access to JLR's products to capture a share of the growing private mobility solutions market. The Out targets younger, affluent city dwellers who live an asset-light lifestyle that values access over ownership. The service is a premium alternative to conventional car sharing schemes, attracting customers who demand higher levels of service and more prestigious vehicles. From a JLR perspective, opening up these new markets for the company results in incremental sales and also exposes a new generation of potential customers to the company's products.”
Why is the project taking off in London?
“London is a large, affluent city with more than 10 million inhabitants. Central London has the lowest rates of car ownership in the UK, which is a result of the city's proliferating private and public transportation options that are competing for customers. London's transport economy is worth £40bn per year. InMotion estimates that there is addressable market opportunity of £1.4bn for premium mobility solutions, which represents a huge untapped potential for Jaguar Land Rover. Londoners frequently escape the city for a weekend in the countryside, and a lot of the most interesting destinations are only accessible by car. The Out is a perfect solution that is highly accessible and requires zero commitment.”
Will The Out be solely for London, or might the service expand to other cities?
“Currently, The Out is available in central London, zones 1 - 3 as well as Heathrow, Gatwick and City airports. The aim is to expand the fleet and geographical offering over time across large cities in Europe and the USA.”
Will there be a corporate variation as well, or are you aiming private individuals solely?
“We are targeting millennials and Gen-X families who live in London. These target segments have been identified through qualitative, quantitative and proposition specific research on consumer attitudes. We believe our users will look to our service to ‘escape the bustle of the city’ for weekend adventures and special occasions such as weddings or events.”
In short, with the introduction of the ULEZ, the decreasing car ownership in the capital – London is one of the cities with the lowest car ownership due to the congestion taks among others – The Out can provide a good solution to get out of the city where the public transit system does not reach, and/or when more flexibility is required, after work and during the weekends or holidays.
Image: The Out, the car rental service of InMotion Services will provide Londoners the perfect mobility solution for out-of-office hours. (copyright The Out, InMotion Ventures)