Transportation is experiencing one of its most disruptive revolutions in recent years. A shift in focus to the impacts of climate change, cost savings & legislative implications have, and continues to change the way we look at how we utilise our vehicles and get our staff and resources from place to place.
Corporate car sharing will be a key contributor to how businesses move now and into the future.
Basic car sharing arrived in Australia in the early 2000s; these were primarily services aimed at the general public, providing the ability to rent cars by the hour. Since then, car sharing has become well-established in Australian cities, with corporate car sharing now beginning to take off in a big way. Whilst Australia may have struggled somewhat to adopt the idea of car sharing, recent initiatives that have focussed on corporate car sharing seem set to shake things up in a big way.
The practice of having communal workstations and online bookings of meeting rooms have been in place for a number of years. Take this concept and apply it to a vehicle used for business (and sometimes private) purposes and you have corporate car sharing in its simplest form.
Corporate car sharing models will vary, based on the needs and requirements of your business. Car Pooling is one of the most popular models among businesses.
Car Pooling works by having vehicles, which are based at a “home” site, accessible by authorised staff. Users can make a booking on an interactive portal, ensuring that there’s no double up in bookings with real-time availability presented to the user at any given time. Key lockers or keyless entry solutions offer frictionless key management, freeing up valuable resources and removes time based restrictions.
Internal chargebacks can support models whereby vehicles which are used for projects are billed based on actual use of the vehicle. This helps departments within a business to share the true cost of use of the vehicle. The cost of the booking can be calculated based on booking duration, distance travelled and other pre-defined costs.
Car ownership is now seen by many companies (and their employees) to be an expense that can be dramatically reduced simply by being shared among other staff. Companies are realising that they can save money and boost convenience by tapping into the corporate car sharing model.
Removing underutilised vehicles not only saves money, but also discourages unnecessary travel. These changes will contribute to a reduction of congestion on the roads and the lessening of a company’s carbon footprint.
Benefits of corporate car sharing include:
● Cost savings, taking into account the purchase price, maintenance and insurance of the vehicle.
● Less congestion on roads and thus a reduction in air pollution and carbon footprint.
● Convenience as car sharers can select the vehicle to suit their type of journey and specific needs on a particular occasion.
● Improved accessibility as those that could not previously afford a car can now share one and save the cost of purchase.
● Greater visibility and vehicle utilisation as you can maximise the use of all vehicles and thus reducing vehicles sitting idle .
A recent report by IPSOS found that the average daily use of a car is only 63 minutes. Added to this, there is usually a period of 67 days per year when the car is not even used. To summarise, this accounts to the car being parked up for 96% of the time. When surveyed, 50% of people currently owning cars said they would use shared mobility in the future as they knew this would enable them to save a lot of money.
While Car Sharing will be a key model in Corporate mobility, access to different modes of transport is important in this day and age, especially when flexibility is non-negotiable.
Access to carpooling, short & long term rentals, pay-as-you-go services and public transport is necessary to be able to provide evolving businesses with the tools necessary to help get their staff from one location to another. This is termed “Mobility as a Service” (MAAS).
James Bridekirk, Head Of Product & Strategy at Toyota Fleet Management Australia commented: “Looking to the future of corporate car sharing, this is definitely a growing trend. Although the use of traditional company cars is not likely to disappear altogether, this type of vehicle sharing is going to change the way that businesses move their employees around the country.
If we look at Sydney as an example, its size makes car sharing an alternate method of travel that is sustainable and work into the future. It will help to decrease the amount of vehicles on the road, leading to the creation of a more advanced mobility system. Corporate car sharing has the potential to contribute significantly to a dramatic change in the transportation industry in Australian cities.
Gartner research suggests that car sharing and car-pooling is likely to take off in the future, revealing that “approximately 20% of the vehicles in urban areas will be shared-use vehicles by 2025.” This will be a large leap for the Australian transportation industry. The automotive industry will also need to change in order to keep up with the demands of customers and corporate fleets who have sustainable mobility in mind.
In general, businesses already own fewer cars, as do their employees. In the future, electric cars and autonomous vehicles are likely to be involved. Researchers see this impact as a contribution to a far more Collaborative and Connected Society (CCS) in that the mode of travel will be less important than the service level provided to the vehicle user. In simple terms, it is foreseen users of mobility services will make (and already do) their choices based on a personalised service / experience, as opposed to the mode of transport.
Corporate car sharing within a company is just the beginning. Businesses with underutilised assets could create a new revenue stream by making their car pooled vehicles available to other businesses, their staff who aren’t normally eligible for a company vehicle or even the general public. We’re just scratching the surface in terms of what the future of mobility looks like.
Toyota Fleet Management provide access to a series of mobility services, including corporate car sharing, short term and long term rentals, and continue to research new mobility services. If you are seeking further information about corporate car sharing in Australia or mobility services you can via our website or simply get in touch with Toyota Fleet Management today
The information provided by Toyota Fleet Management, a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536, is of a general nature and for your information only. Nothing in this article constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any product or service described, we recommend that you seek independent professional advice such as from your accountant, taxation or financial adviser or lawyer, who can advise you about your personal circumstances and what would be suitable for you.
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