Jaguar launches InMotion spinoff business
Mon 11 Apr 2016
Jaguar Land Rover has announced today that it has launched InMotion, a technology startup that will build travel and mobility apps and services. The intent is to combine innovative practices in both automotive and technology sectors, addressing the ways in which new technology is changing the ways that people access transportation including car sharing, car ownership, and cross-platform access to services.
“With the development of new apps and on-demand services, InMotion provides us with an opportunity to provide engaging and invaluable experiences to both new and existing customers globally,” said Jaguar Land Rover’s Group Strategy Director, Adrian Hallmark. “As a start-up business, InMotion combines the flexibility and pace needed to compete in the ever-changing mobility sector. It allows us to react quickly to new tech and ever-changing customer demands.”
InMotion will be based in London and will initially take on up to 30 employees. Next month, InMotion will begin real-world testing of car sharing and car ownership solutions across North America, Europe and Asia. The research will provide the company data about emerging travel and transport issues, which Jaguar will then attempt to solve. Closed experiments, beta testing, and product launches will follow.
One of the problems with being an innovative auto company is the amount of time it takes to launch a new car. A standard timeline of development from scratch is about three years, depending on feedback and build constraints. Customers today are becoming increasingly used to new product availability in weeks or months rather than years. InMotion was created to combat that gap, using the flexibility of a startup while maintaining the cachet of association with a prestige auto company.
In February, Jaguar Land Rover posted a revenue loss of 2%, and pre-tax profit loss of 27%, even though car sales had increased by 25%. This was attributed to business model changes, including the launch of smaller, less-profitable lines of vehicles. They also suffered from changes in the Chinese market, where an emerging second-hand market caused sales of new vehicles to fall.