Our markets
ZIGUP operates across a number of disparate but connected markets.
Customers have a variety of routes to access both passenger and commercial vehicles, and to accident & incident management services, including claims and repair, but very few participants can provide an integrated service for most or all of their needs.
Within these diverse markets, ZIGUP has developed a market-leading reputation as a large, integrated specialist operator focused on the LCV fleet rental segment across the UK, Ireland and Spain, together with provision of accident claims, hire and repair services of all vehicle types to large corporate and insurance partners in the UK.
ZIGUP’s owned end to end mobility services offering is a key asset in this context. This includes a substantial vehicle fleet totalling over 130,000 vehicles, over 1,200 call centre claims handlers and one of the largest combined branch network and repair capabilities across its geographies.
Overview
LCV
In the past, fleet customers have chosen to own their vehicles directly. Increasingly, they are adopting multi-year lease contracts or rented products for portions of their fleet. This offers greater flexibility in managing fleet size, lower capital expenditure, improved flexibility of hire duration and better service support.
Many businesses in the UK and Europe offer such services, from single-location to large multinational operators, where LCV supply is part of a broad range of vehicle types. While larger operators can offer customers a range of additional fleet services and efficiencies, as well as superior vehicle choice and access to the latest analytics, ZIGUP have the additional advantage of being able to provide nationwide coverage and high levels of in- sourced service support.
Accident management and repair
There are a number of large competitors within the businesses of accident and claims management, replacement hire and bodyshop repair. Principally, they offer specialist services in a particular vertical, with very few offering multiple solutions. Where they do, it is typically as part of a consortium, rather than being fully integrated.
As an integrated solutions provider, ZIGUP offers clear benefits to customers; the breadth and quality of services offered through its claims and services platform; the ability to fully connect into insurance partner systems; and efficiencies from scaling automated processes and self-serve portals for policyholders.
The UK bodyshop market is highly competitive, with a diverse range of participants ranging from single-garage service centres and bodyshops, to large independent national chains and in-house operations within large insurance companies. There is a trend to outsource requirements to networks of independent repair centres or regional or nationwide bodyshop group operators, such as ZIGUP.
Market opportunity
Our customer base of over 17 ,000 rental customers and over 200 claims and services partners is growing, supported by both acquisitions and underlying market growth, driven by outsourcing. Clients are attracted to the services they can access from ZIGUP’s integrated platform, the simplicity this brings to complex processes, and our specialist technical expertise.
Our market leading NPS and Trustpilot scores reflect the focus we have on excellent customer service as a key differentiator.
This market environment provides a broad range of growth opportunities:
- Underlying market growth driven by continued increase in rental penetration in our geographies
- Organic growth from customers attracted to our unique business model
- Capital-light growth from a growing range of ancillary services
- Inorganic growth in adjacent or complementary markets
Vehicle supply
Between 2020 and 2023, COVID-19 and global conflicts combined to create tight supply conditions for new vehicles. An easing of these constraints started in 2023 and a resulting normalisation both of supply chains for new vehicles and parts, together with the stabilising of residual values for used vehicles. ZIGUP has relationships with over 40 OEM automotive brands and is one of the largest single purchasers of LCVs in the UK and Europe. Our strong supply-side network means that we typically have early access to new vehicle supply at scale and attractive rates, and are an early adopter of new technologies. This enables us to refresh and expand our fleet of over 130,000 vehicles.
EV & new technologies
The growing market for non-ICE vehicles, principally battery powered electric vehicles, was also impacted during COVID-19. For the emerging e-LCV segment, there has been the additional challenge of limited options being available, particularly at larger payloads. As next-generation technology offers greater range and flexibility potential for fleet users, e-LCV adoption is expected to grow significantly in the coming years, as they come to market.
We are working to develop relationships with current and new OEMs who are embracing new technology. This will help us to support the energy transition for LCV fleets and align with expected future regulatory changes, such as the phasing out of sales of new ICE cars and LCVs.
LCV rental
UK and Ireland
Total LCVs on the road in the UK and Ireland are estimated at 5.2 million, and the outsourced segment makes up a modest but growing percentage. The decision for short term rental over long term leasing is determined by several factors, including: financing exposures, greater flexibility in managing fleet size from shorter leasing durations and the advantage of full service and maintenance support offered by rental solutions.
Within the UK, ZIGUP is estimated to be the second-largest rental company by number of LCVs and the largest specialising in B2B flexible and term rental. Around half of our vehicles are on hire with industries which support the backbone of the UK economy, from local government and healthcare to engineering and utilities; a further third support retail and consumer services.
Customers are increasingly attracted by our range of ancillary services. These include bespoke fitout, telematics, fleet management and support services, consulting and end-to-end support for transition to electric vehicles, including charging infrastructure installation.
Total LCVs in UK and Ireland
5.2m
Current market dynamics:
- Strong new business opportunities, as large fleets look to replace older vehicles kept on fleet due to new vehicle supply shortages between 2020 and 2023
- Increase in pricing for both new vehicles and young used vehicles means that leasing or rental is a more attractive fleet strategic option
- Increasing interest in e-LCVs as businesses start to plan their net zero transition, though regulatory uncertainty and product
- limitations are restricting demand
Spain
Total LCVs on the road in the UK and Ireland are estimated at 5.2 million, and the outsourced segment makes up a modest but growing percentage. The decision for short term rental over long term leasing is determined by several factors, including: financing exposures, greater flexibility in managing fleet size from shorter leasing durations and the advantage of full service and maintenance support offered by rental solutions.
Within the UK, ZIGUP is estimated to be the second-largest rental company by number of LCVs and the largest specialising in B2B flexible and term rental. Around half of our vehicles are on hire with industries which support the backbone of the UK economy, from local government and healthcare to engineering and utilities; a further third support retail and consumer services.
Customers are increasingly attracted by our range of ancillary services. These include bespoke fitout, telematics, fleet management and support services, consulting and end-to-end support for transition to electric vehicles, including charging infrastructure installation.
Total LCVs in Spain
4.2m
Current market dynamics:
- Strong new business opportunities, as large fleets look to replace older vehicles kept on fleet due to new vehicle supply shortages between 2020 and 2023
- Increase in pricing for both new vehicles and young used vehicles means that leasing or rental is a more attractive fleet strategic option
- Increasing interest in e-LCVs as businesses start to plan their net zero transition, though regulatory uncertainty and product limitations are restricting demand
Accident management, claims and repair
In the UK, there are estimated to be 40 million vehicles on UK roads and around 2.3 million road traffic accidents Current UK market environment: annually, resulting in two million insurance-related vehicle repairs being undertaken.
Each claim results in different and complex legal processes but will typically involve incident recovery, replacement vehicle loan and bodyshop or mobile repair. Our existing insurance partners are estimated to represent up to 20 million policyholders, and typically contract with providers to secure their hire and repair capacity needs, or as referral partners. We also support large leasing companies in the UK’s FN50 and with incident management from the first notification of loss call.
Total vehicles on UK roads
40m
Insurance-related vehicle repairs being undertaken
2m
Current UK market environment:
- Softer insurance cycle, a number of regulatory reviews (Motor Insurance Taskforce, Consumer Duty)
- Consolidation both in insurance market and also around bodyshop groups plus some smaller claims and services providers exiting market
- A number of new specialist insurer entrants operating a fully outsourced model
- Decline in claims frequency helping an easing of capacity in bodyshops, but technician supply shortage remains
- Greater requirement for digital processing, increase in ADAS and other technologies in vehicles requiring greater investment in bodyshop technology