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Business as unusual: Re-imagining company cars and fleets in the new era of work

Benefit schemes meant to attract employees such as communal kitchens and canteens will become anathema, while others may not make sense for a business’ bottom line. The company car, once a desirable perk, may soon become a memory with fewer employees commuting and flexible home-work options becoming more common and even permanent. 
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3 August 2020

NO ONE knows quite what the world will look like post-lockdowns, but one thing is certain: the workplace will never be the same.

Staggered schedules, temperature checks and socially distanced desks are set to become the new normal as employees return to workplaces. 

Benefit schemes meant to attract employees such as communal kitchens and canteens will become anathema, while others may not make sense for a business’ bottom line.

Take the company car. Once a desirable perk, it may soon become a memory with fewer employees commuting and flexible home-work options becoming more common and even permanent. 

The same issue is being faced by companies with large van or truck fleets. Reduced workloads mean that many of these vehicles are sitting idle, costing thousands in maintenance and devaluation whilst offering little income. 

So, whilst employees are having to adapt to this changing world, fleet managers are having to come up with new strategies to make their fleets viable. Motor pools, instead of individual, dedicated vehicles can offer enormous cost savings and other benefits, ensuring you invest in an electrified motor pool doubles down on these.  

Motor pools have long offered the ability to increase fleet utilisation. Advances in fleet management software mean that drivers are able to reserve vehicles online, see what vehicles are available for their desired time slots and reserve a particular vehicle or type of vehicle at the click of a button.

This software can be integrated with smart charging infrastructure, meaning it is possible for drivers to not only choose the vehicle fit for their needs but be assured that it has a full charge and is capable of making their round.

Fleet managers can also rest easy knowing that should a longer journey than planned take place or a vehicle be delayed, the system can manage these uncertainties and assure vehicles are made available. 

Companies can also offer the ability for employees that take vehicles home for the evening to charge there and be automatically reimbursed for their electricity use. Through roaming agreements, they are also able to access over 130,000 public charging spots across Europe.

This can be seen in the same light as fueling cards, ensuring that your vehicles are always able to be filled up. 

Replacing individual vehicles with pool cars shared between two or more employees can segue seamlessly with employees’ new work arrangements while resulting in significant cost savings for an organisation.

By moving away from traditional vehicles in favour of EVs, the savings—and other benefits—begin to accrue even more.

As battery prices continue to fall, battery electric vehicles (BEVs) are expected to reach cost parity with internal combustion engine (ICE) vehicles early this decade.

But upfront costs are just one consideration, as the real cost of BEVs is often already lower thanks to generous Government incentives on both the cars themselves and the necessary charging infrastructure.

Speaking of charging, fuel costs are significantly lower for EVs versus ICE cars—often 50% or more—which alone can result in thousands of pounds in savings annually on a single-vehicle.

Thanks to fewer moving parts (around 20 versus more than 2,000 for a typical ICE vehicle), EVs also have far lower maintenance costs (one-third by some estimates) as well as better resale value.

If that weren’t enough, there’s another way organisations save with zero-emission vehicles: taxes. BEVs are exempt from the Road Tax/Vehicle Excise Duty (VED), as well as the benefit-in-kind (BIK or “company car”) tax. All told, the cost savings of an EV versus an ICE vehicle can be upwards of 70% per mile. 

Offering employees electric pool vehicles can be a smart option to enhance employee engagement and loyalty, while also bolstering the bottom line through cost savings and giving your brand a sustainable image to your customers. 

For the above reasons and others such as public health and safer, quieter streets, electric fleets will (and must) replace traditional ones as we move from the current battle against COVID-19 to the pressing fight against climate change.

Whilst the benefits for business seem obvious, those for society may be even more important. 

 

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