Corporate Car Sharing - it works!

Posted by Peter Soutter on Jun 29, 2018, 11:16:09 AM

I vividly remember my first company-car. The fleet guy showed up with my brand new shiny Mazda 626, handed me the keys and then proceeded to talk about this feature and that feature - this button and that button. But I didn’t hear a thing - I was too busy waiting for him to go so I could take it for a spin. That ‘new-car-smell’ that I for one had never experienced before. In fact, that shiny new car was a good 10 years newer than the family car at the time. Oh and get this, I wasn’t even in Sales! Yes, this was back in the day where the company car was seen a huge perk/employee retention tool and the big push to get promoted had virtually nothing to do with the increase in responsibility and higher salary - no - it was all about that much coveted and elusive company car. It’s all me and my peers talked about!

These days of course, companies have long since cottoned on this ‘perk’ and it’s virtually unheard of in the majority of corporates today to get a company car unless you’re in Sales (or the MD!). But let’s talk about those sales people. Even the busiest - and in this sense we’ll define ‘busiest’ as those doing above average on-site customer visits - are only actually in the car about 20% of their time. And corporates can have literally hundreds of expensive vehicles sitting idle for most of the time.

Enter Corporate Car-sharing. What if instead of every sales person having their ‘own’ car, you instead had a pool of dedicated but shared cars, available to those staff who needed them - and not just for business purposes? Think of the limited number of meeting rooms in your company - they are a shared resource - you go into your calendar, book one when you need one, free it up when you're done for others to use. So why not the same with a shared pool of company cars?? Turns out you can!

How does it work?
Well obviously you’ll need a fleet of cars with the ability to log and send trip details such as odometer readings, fuel level - along with the ability to remotely lock/unlock. You need a booking system for employees to reserve a car, a fleet management console to onboard members, track usage etc - and of course a mobile app. Companies deciding to implement such a scheme will go to one of the many growing number of car-leasing companies and Car-sharing Operators who will provide a turnkey service.

What are the benefits?
There’s an impressive list of benefits - fleet reduction, fewer car-parking spaces, reduced CO2 footprint (which is becoming so very important), reduced ground transport expenses (taxis, short-term rentals etc). Studies also show that employees using corporate car-sharing schemes use public transport systems more! Instead of 100 cars, you need maybe 60. Right from the get-go that’s a massive saving. And wait, there could be more. Many corporate carsharing schemes open up the fleet to the employees for private use - even employees that don’t even require them for business - for example - taking it for the weekend - or taking it home from time to time. And given that the fleet is always new cars, you can see why this would be considered such a perk. Private use is often charged - albeit it a nominal fee - and what was once a pure cost-centre, could become a profit-centre or at least offset some the leasing costs.

Why now?
Car-sharing has been around for decades but with recent advances in both the  technology and the telematics space - this convergence has meant that the logistics for managing a corporate car-sharing scheme become very feasible. With all companies looking to drive up productivity and profitability the argument for corporate car sharing is becoming irresistible.

Want to know more?

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GTS has over 8 years experience in car sharing working with some of the largest companies in the world. Our software provides full corporate fleet functionality. To find out more contact us or book a meeting with one of our car-sharing consultants today. 

Topics: Car Sharing, Corporate Car Sharing, Fleet

Written by Peter Soutter