Almost nobody wants to give up company car for mobility solution
Everybody’s moving towards mobility? Not so fast: new research by Arval shows only a few businesses are willing to give up the company car option in exchange for a mobility solution instead.
Asked whether they would partly or fully give up their car for a range of mobility alternatives:
- only 7% of fleet decision-makers and employees said “probably” or “certainly” when the alternative was car-sharing.
- That figure rose to 9% for ride-sharing,
- 8% for a mobility budget, and
- 11% for a private-lease car.
- Mid-term rentals also scored 7%.
The figures are included in the 2019 Arval UK Mobility Observatory, putting a wide-ranging set of questions on fleet and mobility trends to 3,930 UK fleets.
- The study shows significant differences in attitude between smaller and larger companies. Whilst just 3% of companies with fewer than 10 employees would opt for car-sharing, that figure rises to 14% for companies with 1,000 or more employees.
- There are signs of widespread interest in mobility solutions: car-sharing is widely used (or considered for use within the next three years) by 31%, ride-sharing by 45%, mobility budgets by 21%, private lease by 23% and medium-term rental by 22%.
- So why are drivers reluctant to give up their company cars? Ease of motoring, say 16%. Other reasons: not having to finance their own car (14%), zero ownership risk (10%) and getting a new car every 3 to 4 years (8%).
“As our research show, corporate interest in mobility solutions is high”, says Shaun Sadlier, Head of Arval’s Mobility Observatory in the UK. “However, the company car looks set to remain the core transport method for the foreseeable future.”
The reasons, he believes, are simple: employees value the benefits of a company car; and for a typical multi-stop journey, cars remain the only practical option.
“We think the most likely model to develop in the majority of businesses is one of mixed provision, where a range of mobility solutions are used alongside company car, with employees using the most appropriate form of transport for each journey.”
According to Arval’s Mobility Observatory, as more and more fleet managers turn into mobility managers over the next few years, one of the most interesting developments will be to see how businesses will learn to use mobility options in the most effective manner.