Lidl Teams Up with Fiat to also Rent Cars

FACTS

• Lidl and Fiat announced a partnership and unveiled a leasing offer distributed via Lidl for the Italian manufacturer’s vehicles.

• Lidl adds a leasing option for Fiat 500 models which can be subscribed from their website. This full-digital process is described as fast: it would only require 15 minutes.
• The customer’s contract can be customised online: car colour, leasing period, assessed monthly mileage.
• Two distinct packages:
  • 10,000 kilometres (roughly 6,200 miles) per year and 48-month commitment.
  • All-inclusive offer optionally available for a higher rate: maintenance, insurance (civil liability and all-risks), and snow tyres.
• Lidl bets on start-ups’ skills: Vehiculum (which sells vehicles online), IDnow and FinTecSystems (customer identification, creditworthiness assessment, and digital signing).
• This service is available from lidl-autos.de. The vehicle is shipped via the car dealership network Gotthard Konig.

CHALLENGES

• Making room for subscriptions on the market for car consumption. Lidl and Vehiculum claims they drew inspiration from streaming content providers. Their model is meant to make it easier for customers to have access to a car, which also accounts for Lidl’s legitimacy in selling these packages.
• Promoting partnerships between large-scale groups and start-ups. Lidl includes identification services, creditworthiness assessments and digital signing processes designed by start-ups, again highlighting these partnerships’ potential.

A 3-month campaign

• Limited offer with 1,000 vehicles
• Monthly rate: from €89
• Leasing + services: €164
• Campaign's time span: from February the 4^th to April the 30^th. The offer seems successful: on February the 13th, all the cars available had already been subscribed.

MARKET PERSPECTIVE

• The automotive distribution sector is undergoing impacting changes and more players from various industries are placing their bet. Considering these changes, car makers now test different kinds of partnerships to sell their vehicles online and in-store.
• Lidl isn’t the only retailer taking a stab at this market: previous examples include Carrefour and Walmart, for instance.
• This launch is also in line with Lidl’s focus on diversification and enhancing their online presence: prior to launching this car leasing service, they introduced a travel agency (with 15,000 customers to date), an online wine shop, and even a fashion collection.