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Drover: Can the ‘Netflix for cars’ really work?

A stylish DS3 can be yours, by subscription: DS Automobiles
A stylish DS3 can be yours, by subscription: DS Automobiles

They call it “Netflix for cars”, and I can see the attraction, at least for some. Startup Drover is a novel no-strings monthly subscription system for running a car, something you can cancel with seven days’ notice. So, yes, novel.

Drover has only been operating since 2016, and is run by an entrepreneur named Felix Leuschner, who seems smart enough, but hardly looks old enough to hold a driving licence himself. He’s managed to raise around £7m in City funding, which maybe says something about him and/or his idea.

Anyway the new “thing” is running a car – or a variety of cars – by subscription. That is paying a monthly fee that varies and depends on what sort of car you wish to use, and, because, it is based on market conditions, can also vary (and sometimes to the users’ advantage). Unlike a conventional PCP Plan, say, or paying off a car loan from the bank (how quaint) or paying cash, the novelty here is that you have very little financial commitment. There’s no substantial up-front deposit; you can give a week’s notice to end the arrangement; and you get to choose from quite an array of vehicles, from hatches, though sports cars, to exec saloons and SUVs.

So in the summer, say, you could drive a new Mazda MX-5 convertible or an older Porsche, while in the winter you could enjoy the comforts and economy of a conventional hatch. If you want to drive to Switzerland to ski, or take some gear to the tip, you can have the use of a VW Touareg, say, for a month.

In each case the subscription will cover the usage of the car – think of that as rental – plus insurance and other incidentals, and of course you’ll never have to get it serviced or repaired yourself.

The standard mileage package is 800 miles per calendar month. If customers go over the limit, they are charged an additional 10p per mile. They can also opt for additional mileage packages, for example 1,200 miles per month adds a further monthly fee of £20.

In addition, road taxes, breakdown cover, and MOT checks are also taken care of; plus Drover offers a fuel card for discounts with selected fuel partners. Leasing and financing options don’t incorporate this into their costs, meaning people are often sprung with these costs later down the line, which add up. Like a company car, drover looks after the admin of running a car, which for some is a significant advantage. They ask for a deposit of some £300, which is fully refundable if the customer is over 25; and there’s no “balloon” payment at the end. In uncertain times, if things take a turn for worse for the drover customer they can walk away from any obligation with a week’s notice.

Sounds great. Is there a snag?

Of course. There is great flexibility and choice contained in the scheme – there are more than 50 models to choose from, with a new agreement with PSA group delivering cars from the Peugeot, Citroen and DS brands now available. Other car brands currently listed on the platform include BMW, Hyundai, Mini and Ford.

However, all of that choice, flexibility and ease of use is “priced in”, so most consumers will find the monthly cost is higher than the equivalent PCP one. For the Citroen DS3 Puretech, for example, it’s £399 per month, inclusive of the vehicle, comprehensive insurance, wear and tear, servicing and maintenance, road tax and breakdown cover (and the a discounted fuel card). Against that a PCP from PSA will cost between £169 to £329 per month, but with sometimes larger lump sum payments either end and more user responsibility for running costs.

Leuschner, CEO and co-founder of Drover, explains: “Increasingly, consumers don’t hold owning a car in the same regard that they once did. Our lifestyles have become more agile than ever and consumers prefer products and services that can be nimble and flexible, rather than large financial commitments.”

At first glance, then, Drover may not revolutionise the way we use the car, but it will add to choice and suit some customers – perhaps those who might otherwise suffer crippling insurance costs, or who need or prefer to have a variety of different models to enjoy. Drover will add to the motoring ecosystem in a welcome way, as have Uber, car clubs and the various financial innovations that have arrived in recent decades.

For more information, visit joindrover.com