Corporate Car Sharing: Driving Utilization Rates of Company Vehicles to New Heights

April 11, 2024 5 min read
Corporate Car Sharing: Driving Utilization Rates of Company Vehicles to New Heights

Corporate mobility is at a tipping point. The most innovative companies are re-thinking their employee mobility so that they can enhance efficiency, cut emissions, and attract top talent. A product serving this purpose and gaining rapid popularity among companies is corporate car sharing, a fresh approach to offering employees access to shared mobility that solves multiple issues at once. Let’s delve into what it entails and how it can revolutionize your organization’s transportation approach.

What is Corporate Car Sharing?

Corporate car sharing replaces traditional company schemes, often involving 1:1 car ownership ratio with flexible and shared car fleets. These dynamic fleets are capable of meeting the business transportation needs of the company while making them available to employees for private usage. Here are their key elements:

1. Shared vehicles: Employees share access to a single pool of company cars based at their employer’s premises. The reservation process is digital and access to the cars is keyless.

2. Hybrid usage: Employees can reserve cars both for business and private needs, with business rides typically having priority.

3. Private usage pricing: The employer defines the pricing for private usage, typically well below market but not necessarily for free.

4. Customization boundaries: The company defines the rest of the parameters, such as access hierarchies or business hours via a web interface. A typical example is giving priority access to part of the fleet to employees with higher business mobility needs.

The Benefits of Corporate Car Sharing

The shared and hybrid usage of corporate car fleets comes with a series of benefits. Let’s look into the most relevant ones.

1. Cost optimization Shared fleets require fewer vehicles than “1-employee-1-car” solutions, particularly when backed by an optimal vehicle allocation algorithm. Fewer cars also require fewer parking spots. Consequently, both of these factors contribute to cost savings. Additionally, the company generates extra revenue by allowing employees to use the fleet for private purposes, which can recoup 100% of the total fleet costs, essentially making the program cost-neutral. Finally, in countries like Switzerland, employers must reimburse employees up to CHF 0.70 for every kilometer driven with their private car for business purposes. Despite its relatively high cost, employers often choose this option for occasional users to avoid assigning them a company car. Corporate car sharing provides companies with a much more attractive alternative as the kilometer cost for occasional use cases can be as low as 0.2 CHF – a staggering 70% decrease in total cost.

2. Employee satisfaction

By giving employees access to highly discounted car rental rates, corporate car sharing enhances satisfaction. Although employees who used to have their own company car may initially be displeased, studies consistently prove that new employee generations value having a corporate car less and are more interested in flexible, multimodal options [1].

Additionally, horizontal, company-wide access to private usage introduces a degree of fairness and community among employees.

3. Sustainability goals Our experience has shown that employees with access to corporate car sharing solutions regularly refrain from buying a car privately because their use cases are mostly covered by having access to a corporate fleet. Another reason corporate car sharing offers sustainability benefits is because vehicle utilization is optimized. Large traditional company fleets often sit idle for significant portions of the day, leading to inefficiencies and wasted resources. This is rarely the case with corporate car sharing initiatives, where fewer vehicles serve the same number of employees, reducing the overall number of vehicles required by the company, and thus also reducing production emissions

4. Talent attraction and retention In a competitive job market, offering innovative and employee-centric benefits like corporate car sharing can make your company stand out, appealing to top talent and contributing to talent retention.

5. Administrative efficiency Implementing a centralized platform for corporate car sharing streamlines billing, expense management, and fleet oversight. A good example is the above-mentioned reimbursement tariff in Switzerland for private car use for business rides, which becomes fully automated through a digital process of corporate car sharing. This reduction in administrative burden translates to significant time savings.

    Corporate Car Sharing with Urban Connect

    At Urban Connect, we are well aware of the mobility challenges faced by corporates, and their corresponding pain points. Our corporate car sharing solutions are tailored to meet your specific needs, offering:

    1. Customizable plans: Build solutions that align with your company’s priorities, accommodating diverse employee groups and fitting within your budget. Existing fleets can also be integrated and optimized.

    2. Seamless technology: Our centralized platform provides the latest vehicle sharing technology, real-time tracking, usage reports, and easy payment methods, streamlining your corporate mobility management.

    3. Comprehensive support: Our dedicated team, including 24/7 customer helpline, ensures smooth implementation and ongoing support for your HR department and employees.

    Revolutionize the mobility landscape of your organization

    Corporate car sharing represents a win-win solution for forward-thinking companies. It promotes efficiency, sustainability, and employee satisfaction – all crucial elements for long-term business success.

    Reach out to us or book a demo to discover how corporate car sharing can transform your organization. Let’s revolutionize the future of transportation together!

    Javier Alegria
    Chief Product Office
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