Driving services

The AA’s Driving Services business comprises driving schools and training for occupational drivers or those who have committed driving offences. Whilst our driving school operations, through our AA and BSM brands, our franchise based, training for occupational drivers and individuals who have committed driving offences are delivered under long-term service contracts.

Market share

The AA has approximately 10% of the very fragmented market for pupils through its two franchises, AA Driving School and British School of Motoring.

In DriveTech the AA has strong positions in both fleet and Police markets. In the Police market the AA has contracts with 11 of the 45 Police forces in the UK. In the fleet market the AA is market leader with a range of smaller competitors.

Competition

The UK driving services market has high levels of competition ranging from national and regional networks to independent operators. Markets remain competitive with cost and professional qualities top of the buying criteria. Competitors include Red and Bill Plant driving schools and TTC driver training.

Customers

In driving schools, pupil segments and their needs are complex, varying by age, region and buying criteria. Key customers for occupational-driver training are companies with significant logistics operations in the UK and Europe, as well as Police forces throughout the UK.

Market drivers

The driving school market is driven by levels of economic confidence. Since 2012 demand has been strong due to better economic conditions and a catch-up of people who deferred learning to drive during the financial crisis. Occupational-driver training is also affected by economic confidence as companies’ fleets grow or contract.