AA developing product portfolio to meet future fleet needs

AA Business Services is developing several new solutions for its corporate customers against a backdrop of huge change in the industry.

An increasing number of electric vehicles (EVs) are being adopted in the UK, while the increased connectivity of new vehicles is providing a wealth of insightful data.

Both of which provide opportunities and challenges for AA Business Services, which is keen to be seen as more than just a breakdown and recovery provider.  

“The world of breakdown is changing,” James Starling, AA Business Services  

The AA already provides accident management to the fleet sector, both through its leasing partners and direct to end-user fleets.

AA Business Services director, James Starling, told Fleet News it is an area of the business that the AA wants to grow along with its service, maintenance and repair (SMR) proposition, which is delivered via its subsidiary Prestige Fleet Servicing.

The AA bought the technology-led supplier of SMR services to fleet and leasing companies, for around £11 million in 2019. 

“It's primarily a car-based proposition today, but we're looking to expand that into commercial vehicles,” explained Starling.

The firm is currently running a pilot scheme with a “very well-known, large leasing company” and expects to rollout the service to other customers in the future.

Developing Drivetech

Drivetech, the AA’s driver training business, is also an area of the business which Starling is keen to grow. “I want to integrate Drivetech's product capability more into the accident management part of our business,” he said.

“I believe we can then offer a range of products and services to our leasing partners or direct to large fleets that I think would elevate us above our competition.”

However, Starling is quick to stress that, with such a recognisable brand in the sector, there are no plans for the business to be rebranded.

Onward Mobility

There is also a desire to develop the AA’s ‘onward mobility’ proposition post breakdown.

Like all breakdown recoveries, the AA offers two-day cover for its customers, but once they go beyond the two days it goes into cost.

“What we’re doing is we’re working with a number of clients about how we can manage that extension beyond the typical two days, and how we could do that in a way that supports the requirements of our lease co’ partners and our OEM partners,” explained Starling.

“It’s about managing a better experience beyond the traditional to two to three-day mobility programme for the whole period that the vehicle is off-the-road and making that a better experience for the customer.”

Connected Vehicles

Collecting a vast array of data, the AA also recognises that the growing connectivity in vehicles provides it with an opportunity.

Starling told Fleet News that the business is in the process of developing its offering. “We have set up a dedicated team and recently recruited a head of our connected car proposition,” he said.

“We hope to be in the marketplace with some form of connected car proposition soon and I think, as that product evolves, in the next six to 12 months we are going to be as advanced as anyone in the marketplace.”  

Business Priorities

Starling was appointed director of the AA's businesses services division in September, charged with focussing on growing business areas, including automotive, finance institutions, leasing and small medium enterprises (SMEs).

New products and services development are a key priority for the business, and continuing to drive innovation, from self-service delivery and app strategy, and enhancing the digital journey for B2B clients, are key aspects of Starling’s remit.

Starling has previously held roles as chief commercial officer at SMH Fleet Solutions, in addition to corporate director and head of corporate new business at Lex Autolease.

He also brought automotive experience to the position following roles at Toyota Financial Services, Renault Financial Services and Ford Credit.

Electric Vehicles

In terms of electric vehicles EVs, the AA provides call centre support for charge point operators (CPOs). “We’ve got 30% coverage of all call centre operations for all the electric charging points around the UK now,” said Starling.

The AA has also been developing breakdown support for EV drivers as well as providing a handover service for new plug-in vehicles.

With a safety-first focus, Starling explained: “We have a slightly different view versus some of our peers at this moment in time; we will not look to recharge an electric vehicle at the roadside.

“We think it’s dangerous and not right today, because we don't think that the charging points (powered by a diesel) are environmentally sustainable.”

However, he says that as roadside charging develops further, it may change its position as to how it deals with EVs with depleted batteries.

In terms of new EV drivers, the AA is looking at how it can improve and build on the handover experience by providing a service for leasing companies when a new EV is delivered to a customer.

This could, he said, involve Drivetech providing an e-learning driver training handover and face-to-face training where the driver can be shown to use the vehicle in the right way.

“We’re looking to take that EV experience to a slightly different level,” explained Starling. “I think there’s so many people and customers which would benefit from that kind of approach.”

He concluded: "I think we're making some headway already. You can see a few little subtle changes with how we’re developing our products, but we're going to make them even better."