PayPerKay: Car leasing made as easy as topping up a mobile data bundle
Uber made travel easy. Airbnb made stays away from home more affordable. Now, Massar Solutions’ ParPerKay service is about to make leasing a car as easy as topping up a mobile data bundle.
Massar Solutions, a mobility services firm that is a subsidiary of Abu Dhabi National Energy Company PJSC (TAQA) and Invest AD, released PayPerKay in 2015 in the UAE, offering citizens an easier, more affordable option to leasing vehicles. PayPerKay does what it says on the box: You pay for the kilometres you drive, and nothing more.
To learn more about the service, AMEinfo spoke to Fahim Mohamed Al Shehhi, Managing Director at Massar Solutions.
(Fahim Mohamed Al Shehhi, Managing Director at Massar Solutions)
What is the PayPerKay service, and how does it work (how does the app count the number of kilometres travelled, etc.)?
PayPerKay is an industry-first, pay as you use, vehicle rental and leasing business. It makes use of a customized mobile application which delivers a seamless customer experience. This customer experience focuses on giving the customer the freedom to manage their spend based on how much they use the vehicle. This ensures the customer enjoys peace of mind along with exceptional quality. Each vehicle selected for long term lease (+12 months) is purchased brand-new specifically for the customer. Where there are colour options for both interior and exterior, the customer gets the benefit of selecting what they want. This adds the dimension of the ‘buying a new car’ experience but without the risk of taking out a loan.
The process is also very simple. Here are the steps a customer takes when choosing PayPerKay as their leasing partner:
Select a car and contract period on www.payperkay.ae. Submit your details.
We’ll call you to discuss your requirements further or we can meet with you. Once you’ve decided on what package is best for you, we’ll prepare a contract pack and book a car for you.
We’ll send you an email/text message to let you know how to download the PayPerKay application from the Apple or Android App Stores.
We’ll meet to wrap up the paperwork and give you access to the mobile app.
You’ll drive off in your new car!
While using the vehicle, customers can top up mileage on the app during the month. They only pay for what they use.
Kilometre purchases come in 100km, 250km, 500km and 1,000km bundles.
When you have 100km remaining on your allowance, we will alert you. You simply buy a new kilometre bundle via the mobile application. You don’t have to wait until you are alerted; you are able to buy extra kilometres at any time you wish. At the beginning of each contract month you’ll be credited with a free 1,000 kilometres. So that you don’t lose, what you don’t use, any kilometres that remain at the end of each month will be credited to the following month.
All of the considerable back-end development of the solution considers multiple factors. For the solution to work, there are four key areas that operate together to deliver the result. These are a proprietary data-driven core back-end system, mobile application functionality, onboard in-vehicle technology and integrations into multiple third-party systems. The solution is managed and hosting internally by Massar Solutions.
When you came up with this service as a business idea, what market gap were you trying to fill? What problem in the market are you addressing exactly?
PayPerKay was launched in the UAE in 2015 by Massar Solutions. The concept was designed to disrupt the traditional vehicle rental and leasing market. Traditionally, a customer purchases a lease or rental with set parameters. These parameters stay consistent regardless of usage.
For example, if someone with a lease were to go on holiday in summer for a couple of weeks, their cost will remain the same. With PayPerKay, the less you use, the less you pay. If your vehicle isn’t used in the month, not only do you not pay for the mileage that you did not consume, the mileage not consumed in one month, is carried over to the next. The concept also helps customer manage their budget. If they have only a few days left in the month and they know they do not need a lot of mileage, they can simply purchase a small number of kilometres for what is needed.
Who do you target this service to, and what kind of savings can customers look forward to?
PayPerKay is open to anyone who wants to drive the car they want while keeping their spend under control. We have customers from all over the UAE, some make use of the vehicle as a second, third or fourth car. Some as their primary mode of transport and even some customers make use of PayPerKay for their family driver.
Either way, the simplicity of the concept and the fact one gets a brand new vehicle linked to a mobile application to manage spend on their transport entices customers to make use of a trusted mobility partner. Apart from the freedom of managing kilometre spend, items such as insurance and registration fees are included in their monthly total.
What has the response been to PayPerKay, and can you share some statistics with us regarding its usage so far (nationality, customer age and gender ratios, miles travelled, etc.)?
Since its inception, PayPerKay has enjoyed overwhelming support. The brand has grown significantly and considering it is a new concept in the market, year-on-year growth of 15% in the number of vehicles leased is a testament to its success. Customers have driven over 10 000 000 kilometres from various nationalities, age groups and genders and continues to grow every day.
How has the car rental and leasing market been performing in recent years? Any notable trends?
The vehicle rental and leasing market has seen pressure placed on price over the past few years. The competitive environment is wide with multiple domestic and global brands competing for their portion of the market. The industry needs to ensure that the market is not commoditized purely on price as ultimately quality will be impacted. This is why a concept like PayPerKay offers customers the option of getting the highest possible quality at an affordable price which they have control over, considering the traditional models within the industry which have significant costs of distribution through global distributions systems, franchise fees and legacy operational overheads.
PayPerKay, being a proudly UAE brand, is predominantly an online business and makes use of Massar Solutions’ infrastructure in order to pass the cost benefit to its end-consumers. One key trend that we have noted is that customers are more and more looking to lease rather than buy. This is either a personal preference or the benefit of not having significant lock-in to the vehicle with small penalties for early cancellation.
How will this service affect the automotive industry in the UAE?
PayPerKay is a symbiotic addition to the automotive industry. With the growing demand in personal leasing and alternative mobility solutions being launched on a continuous basis, our intent is to continue developing PayPerKay’s model to support the market’s need. We have excellent relationships with the vehicle distributors and our customers. As the market moves, PayPerKay will continue enhancing not only its commercial proposition but its technology and overall concept for the benefit of the customer.
Any future plans for PayPerKay?
We plan to continuously improve the PayPerKay solution in both functionality and its commercial proposition in the market. Once we achieve various goals, it may be an option of expanding this truly UAE concept outside of the UAE. However, we would like to focus on the core of the business and to continue adding value to our customers and business partners.