Launched on the strength of Kwik-Fit Group holding a handful of trade accounts in 1987, Kwik-Fit Fleet has grown from a £2.4 million business to a £200 million+ trading division, but there are plans afoot to increase the company’s share of the vehicle leasing, outright purchase and rental fleet sectors.
Today, Kwik-Fit GB technicians work out of 676 UK centres and 200 mobile units and ‘touch’ more than eight million cars and vans a year - almost 25% of the vehicles on the UK’s roads.
Add in the sophistication of fleets being able to book on line, a 24-hour support service, seven-day-week opening and Kwik-Fit Fleet is a 24x7, 365 days a year motoring business.
However, whilst tyre repair and replacement remains the dominant business for Kwik-Fit Fleet, plans are in place to notably drive up corporate demand for vehicle servicing, brakes and MoTs.
It is already reporting significant year-on-year growth from the fleet sector for mechanical work and Kwik-Fit Fleet sales director Peter Lambert wants to create an image of the company where the acceptability among company car drivers and fleet decision-makers of using Kwik-Fit for a range of mechanical work is the same as it is for tyre repair and replacement.
“With our focus on improving the customer experience through our programme of centre development, we believe the image of Kwik-Fit in terms of reception areas and staff engagement, will be no different to that of a franchise dealer,” explained Lambert.
“Further improving Kwik-Fit’s image and reputation and adding those attributes to already established hallmarks such as cost savings versus franchise dealers and centre and mobile accessibility will be key to further expansion in the corporate sector as we convince more leasing companies, fleet managers and company car drivers to use our services.”
An analysis of the UK contract hire and leasing sector reveals the potential growth opportunities for Kwik-Fit Fleet. Industry figures reveal that there are approximately 1.4 million vehicles on contract hire.
On an average company car lease of three years/70,000 miles the average maintenance budget is approximately £2,000 split between tyre costs, servicing and friction items.
Therefore, the leasing sector alone is worth some £2.8 billion over three years - almost £1 billion a year - and Kwik-Fit Fleet currently has an approximate 20% share of that market.
Lambert said: “Kwik-Fit is the corporate market leader, but in a fragmented sector there are many opportunities for the company to increase its share of available business from the leasing sector as well as from rental companies and outright purchase fleets.”
Gilberto - 23/05/2012 15:29
Another misleading statement. KF's 20% share is basically on tyres and some MOT's. They hardly gain any servicing/mechanical work due to skill levels and collection and delivery capabilities (unless you want a fold up bike in your boot!). The driver needs confidence they can do the job NOT serve them a nice coffee - but it helps :-)