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Mobility, not cost-saving, is key car club benefit reveals fleet survey

Mobility, not cost-saving, is key car club benefit reveals fleet survey

Mobility, not cost savings, risk management or sustainability impact, is driving uptake of public and private employee car club programmes, according to a survey of 268 managers by Enterprise Rent-A-Car.

When asked to indicate the ‘main benefit’ of employee car clubs, respondents said immediate vehicle accessibility with no notice required (29%), 24/7/365 vehicle availability (24%) and improved employee mobility (22%) were the key attractions of the programmes.  

As the chief benefit for 17% of respondents, sustainability and environmental benefits were ranked higher than cost savings, which were seen as the main benefit by only 13% of respondents, or around one in eight. Even fewer - only 6% - thought corporate liability reduction was a significant factor.

Reducing the administrative burden of processing multiple individual mileage expense reclaims was also seen as less important, rated as the key benefit by only 18% of respondents.  

Adrian Bewley, head of business rental for UK and Ireland at Enterprise Rent-A-Car, said the findings indicated a fundamental shift from operational efficiencies to people.  

He said: “We’ve been operating corporate car clubs for over a decade and we have seen a complete change in how organisations perceive their benefits.  

“Where once we would spend a lot of time with the finance, risk and compliance departments, we’re now dealing with a much wider group of managers. All they want to know about is mobility: how can we help our employees travel more efficiently? Cost saving is a much lower priority.  

“Many organisations that had opted to allow employees to drive their own cars for work are now seeing their own shift. Especially in urban areas and among a younger workforce, businesses are increasingly looking for employees to travel to and from work without the use of a car.  

“Parking spaces are a premium at offices, and with more employees travelling to and from their place of work via other means we’re seeing a transport modality shift.  

“The next question then becomes, as this trend increases, how do employers mobilise their workforce when on campus in the most efficient manner? This is where corporate car clubs, in particular, are proving a great benefit in solving this conundrum. They’ve become the ideal solution for on-demand, easy and convenient employee mobility.”