Businesses unwilling to give up company cars for mobility solutions - Fleet Services Summit
  • Businesses unwilling to give up company cars for mobility solutions

    960 640 Stuart O'Brien

    Few businesses would be willing to give up their company car and use a mobility solution instead.

    That’s according to research from Arval – In response to a question asking whether they would fully or in part give up their vehicle for a range of alternatives, just 7% said they would probably or certainly opt instead for car sharing, 9% for ride sharing, 8% for a mobility budget, 11% for a private lease vehicle and 7% for mid-term rental.

    The finding comes from the 2019 edition of Arval Mobility Observatory, research which covers 3,930 fleets and asks a wide ranging set of questions about fleet and mobility trends.

    It does show, however, that there are often differences between smaller and larger organisations when it comes to attitudes to mobility products. For example, while just 3% of businesses with fewer than 10 employees would opt for car sharing while in those with 1,000 or more employees, this grows to 14%. 

    There are also signs of widespread interest in mobility solutions. Car sharing is already being used or considered for use with the next three years by 31% of respondents, ride sharing by 45%, mobility budgets by 21%, private lease by 23% and medium term rental by 22%.

    The research also looks at reasons why drivers are unlikely to want to give up their company cars. They are ease of motoring (mentioned by 16% of respondents), not having to finance their own vehicle (14%), no risk of ownership (10%) and delivery of a new car every 3-4 years (8%).

    Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “There is a lot of discussion in corporate circles about mobility solutions at the moment and our research shows that interest is high. As a provider, we believe that there is considerable potential for these products.

    “What is clear above all, though, is that the company car looks set to remain the core transport method for the foreseeable future. While decision makers and employees in organisations are interested in mobility solutions, it appears that the vast majority see them as supplementing or being a partial alternative to the traditional fleet.

    “The reasons for this are simple, we believe. Some of them are revealed in our research by showing how much employees value having a company car and the benefits it brings. The other is that, when a typical multi-stop journey is undertaken, a car is literally the only practical option.

    “A mixed provision model is one that we have been saying for some time is the most likely to develop in the majority of businesses, where a range of mobility solutions are used alongside company cars with employees using the most appropriate form of transport for each journey.

    “Our belief is that, over the next few years, as more and more fleet managers become mobility managers, one of the most interesting developments will be the process that businesses undergo in learning how to use mobility options in the most effective manner.”

    Image by Free-Photos from Pixabay

    AUTHOR

    Stuart O'Brien

    All stories by: Stuart O'Brien