LONDON -- A startup backed by Jaguar Land Rover is introducing a vehicle-subscription program to attract affluent millennials who do not want to buy or lease a car.
Pivotal, supported by JLR's InMotion venture-capital unit, will offer a six-month subscription for drivers in the UK starting at 750 pounds ($934) a month for a Land Rover Discovery Sport or Range Rover Evoque, according to the company's website.
The top-of-the-line Range Rover will cost 1,600 pounds a month. The payment will cover tax, maintenance and insurance, and customers can cancel their subscriptions after three months, Pivotal said.
Other companies have announced similar programs. Volvo, which already runs its subscription service, Care by Volvo, in other markets, will introduce the scheme to the UK in September.
London-based startup Drover has partnered with BMW to offer an similar alternative to car ownership.
In the U.S., Audi offers subscriptions for its cars, starting at $1,495 a month.
Mercedes-Benz brand too introduced a U.S. subscription service in 2018 but pulled the plug on the two-year-old pilot, Automotive News reported last month.
With new-car sales plunging amid the coronavirus pandemic and people reluctant to return to public transportation, automakers are looking for ways to spur demand.
Jaguar Land Rover, owned by Tata Motors, said in a statement that it expects subscription services to account for almost 10 percent of all car sales in Europe and the U.S. by 2025, equivalent to some 16 million vehicles.
