PSA Peugeot Citroen moves into car rental to gain market share

PSA Peugeot Citroen is to offer prepaid cars by the day to young city dwellers as part of the French motor company’s drive to regain market share and enhance the appeal of its brands with consumers and investors.

The new business, branded Mu, is to be launched in Paris, Berlin and Amsterdam this winter and will reach Britain before the summer.

Within less than a year, Londoners will be offered ‘pre-paid mobility on demand’ from Peugeot dealerships through a payment card that offers consumers the choice of a car, a small van or a scooter for a day or a weekend.

The Mu concept is targeted at young people in cities and is aimed at generating income from the stock of vehicles sitting at dealerships, a huge drag on dealer profitability.

Mu customers will be able to load mobility points on to a card which entitles the user to a vehicle.

The pilot schemes in France, offer a Peugeot 207 for 280 points per day, a cost of 56 euros. For about the same cost consumers can rent a Peugeot scooter for three days, and for 25 units, or 5 euros, a bicycle for a day.