Our business model

Delivering complete peace of mind® across the driving services lifecycle.

Purpose and proposition

RAC’s purpose is to deliver complete peace of mind® to its members and partners across the full driving services lifecycle. The Group addresses the most essential and recurring needs of drivers – breakdown, insurance, and service, maintenance and repair (SMR).

This is underpinned by RAC’s ambition to become the UK's #1 for driving services. We are a highly trusted and iconic UK brand with over 128 years of experience and a nationally scaled operational footprint. We are well positioned to capture further growth across the driving services market, with continued investment, innovation and differentiation.

Membership-led, subscription-based model

At the core of the Group’s business model is a membership-led, subscription-based approach, which provides a resilient, predictable and recurring revenue base.

Approximately 14.8m breakdown memberships across B2C and B2B
0.7m insurance memberships

Value creation is driven by a proven compounding formula of more members, staying longer, spending more, serviced efficiently.

This model delivers growing annual recurring revenues and strong cash generation, enabling sustained reinvestment in service quality, colleague development, data and digital capability.

RAC’s strategy as a leader in driving services

Three complementary driving services offerings

RAC delivers three complementary membership-based offerings to members and partners: breakdown, insurance and SMR.

Together, these driving services support members and partners across the end-to-end driving services lifecycle, increasing consumer engagement, partner affinity, share of wallet and resilience through economic cycles.

RAC’s core established businesses of breakdown and insurance build trusted, long-term member relationships, touchpoints and data.

SMR extends relevance into higher-frequency, naturally recurring needs, leveraging members and data to grow new and repeat sales.

RAC’s complementary driving services business model

Breakdown

The RAC has a market-leading roadside assistance proposition with c.40% market share across consumer and business breakdown¹
Serving 14.8m breakdown memberships
High-quality, recurring growth supported by national scale, dense patrol coverage and strong customer satisfaction (Trustpilot 4.5)²

Insurance

The RAC is the UK’s #1 independent motor insurance broker³
Serving 0.7m members through a capital-light, low-risk model with no underwriting exposure
The RAC leverages brand trust, data driven pricing and digital distribution to deliver attractive economics and significant cross sell, engagement, and renewal opportunities via myRAC
Policies are mostly sold via price comparison websites, where consumers favour trusted brands like the RAC over lesser-known brands

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SMR (servicing, maintenance and repair)

Launched in 2022, the RAC’s fast-growing, mobile SMR offering delivers convenient, high-quality vehicle maintenance and repairs at home, work, or fleet depots
Tapping into increasing consumer demand for convenient ‘to-you’ services delivered at home or at work
A fleet of c.300 Mobile Mechanics
Strong customer satisfaction and convenience (Trustpilot 4.8)⁴

Differentiated operating platform

Underpinning the RAC’s business model is a set of hard-to-replicate capabilities that enable success and create competitive advantage:

National scale and density, with a well-invested patrol and logistics network operating 24/7
Trusted brand and customer advocacy, consistently driving high satisfaction and member loyalty
Data and digital platforms, including myRAC, supporting acquisition, personalisation, pricing and retention, with increasing use of advanced analytics, AI and automation
Operational excellence, focused on delivering “Brilliant Basics” at scale and exceeding member expectations while optimising cost to serve

These capabilities create high barriers to entry, support consistent execution and deliver high quality branded experiences.

Who we are

For over 125 years, the RAC has been at the forefront of developing motoring solutions. Today, you can trust the RAC for complete peace of mind®, for all your driving needs.

Find out more