Why is Corporate Carsharing Good for Your Company?

Corporate carsharing is becoming a sensible option for companies. It cuts costs, saves on parking space, and helps with employee mobility. If your company isn’t on board, now is the time to give it a second look.

Carsharing allows users to borrow cars by the hour or day, without committing to purchasing one. Carpooling and ride-sharing are common in major cities around the world and can be especially useful if you live in or frequently travel to busy metropolitan areas with reliable options.

Corporate carsharing is one of 2021’s biggest trends in the transport industry (Image Source).

While carsharing is generally meant for individuals looking for an alternative way of getting around town, some businesses are adopting the idea of using corporate carsharing – an internal carsharing service where employees can utilize company cars when needed.

Why is this gaining popularity? Because corporate carsharing can come with big benefits for your business. Let’s take a closer look at what those are.

1. Lower vehicle-related expenses

Since carsharing helps deploy vehicles with maximum rotation, companies do not need to have as many vehicles on hand. This saves money on the initial cost of purchasing a new vehicle and added expenses that come along with it, such as maintenance and fuel costs.

2. Better utilization of cars during off-peak hours

Businesses often own multiple vehicles that sit idle in the garage at night and on weekends. Corporate carsharing allows companies to make their extra vehicles available during off-peak hours to provide benefits to their employees who can utilize them at these times.

3. Boost employee mobility

Corporate carsharing enhances employee mobility by offering workers a reliable transportation solution, particularly for anyone who does not have a company or personal car but needs to be mobile.

4. Improve driving habits

Carsharing members typically drive more carefully than regular motorists. People tend to be more responsible with a vehicle when their employer provides it for business purposes.

5. Reduce fossil fuel consumption

Corporate carsharing is a simple way for companies to join the sustainable mobility movement. By rotating vehicles and deploying them to optimize their use, fleet managers can reduce fuel consumption and overall carbon footprint. While this is a huge benefit to the environment, it is also beneficial to your company. By fulfilling your corporate responsibility via sustainable vehicle management, you improve the company’s image and reputation. Also, many government incentives to reduce carbon emissions support corporate carsharing and provide tax benefits (with proper documentation).

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6. Free promotion

Car decals act as brand advertisements as employees drive through city streets while carsharing in company vehicles. This provides free promotion you’d otherwise have to pay big bucks to get.

7. Improve parking

Parking can be a problem for workplaces. With corporate carsharing, employees may no longer have to drive to work, allowing them to save money on parking. Plus, by optimizing the use of company vehicles, you may be able to downsize your fleet, helping free up parking spaces at the workplace.

8. Savings for employees

Employees who utilize corporate carsharing can avoid monthly payments and maintenance costs of owning a personal vehicle. The savings can act as a pay increase employers might not otherwise be in a position to give.

9. Gain data-based insights

Corporate carsharing solutions can come with an exportable reports feature that allows companies to select a date range and create usage reports for that time period. Gaining these insights, such as which cars are being used the most, provides a data-based understanding of vehicle usage that can be used to help optimize fleet size and efficiency.

Another use for this feature, as used by Telia Eesti – an Estonian IT company, is to help the finance department with payroll by providing data on private employee trips that may require salary adjustments to be made.

10. Improve employee productivity

Carsharing helps employees get more out of their day. Without their own car to look after, they can enjoy guaranteed parking and zero trips to the repair shop.

What to Consider When Implementing Carsharing

Even though carsharing services provide businesses with overall cost savings, the success of this service is largely reliant on employee participation. If employees can’t use the cars or they find it inconvenient, it’s unlikely they’ll use the service regularly. Also, if employees choose not to use these services, the costs associated will outweigh the benefit your business receives.

If you run a carsharing program, employees need to know it’s available, what the rules are, and how things work. The more streamlined the process, the more effective it will be.