Companies unlikely to swap cars for mobility solutions, says survey

Company cars are still the preferred method of travel by the majority of companies that operate fleets, according to the latest Mobility Observatory study by international leasing company, Arval, despite growing interest in different mobility solutions.

The Arval Mobility Observatory is the replacement for the French Observatoire du Véhicule d’Entreprise, first launched in 2002, and the previous international Corporate Vehicle Observatory, and surveys over 3,900 fleet decision-makers across Europe.

In its latest research, the Observatory asked businesses whether they would fully or in part give up their vehicles for a range of mobility alternatives.

The survey found that just 7% would “probably” or “certainly” opt for car sharing, 9% for ride sharing, 8% for a mobility budget, 11% for a private lease vehicle and 7% for mid-term rental.

The research uncovered differences between smaller and larger organisations when it came to attitudes to mobility products. For example, while just 3% of businesses with fewer than 10 employees would opt for car sharing, in those with 1,000 or more employees this increased to 14%.

There were also signs of widespread interest in mobility solutions. Car sharing is already being used or considered for use within the next three years by 31% of respondents, ride sharing by 45%, mobility budgets by 21%, private lease by 23% and medium term rental by 22%.

The research also looked at reasons why drivers are unlikely to want to give up their company cars. These include ease of motoring (mentioned by 16% of respondents), not having to finance their own vehicle (14%), no risk of ownership (10%) and delivery of a new car every 3-4 years (8%).

Shaun Sadlier, head of Arval Mobility Observatory in the UK, said: “There is a lot of discussion in corporate circles about mobility solutions at the moment and our research shows that interest is high. As a provider, we believe that there is considerable potential for these products.

“What is clear above all, though, is that the company car looks set to remain the core transport method for the foreseeable future. While decision makers and employees in organisations are interested in mobility solutions, it appears that the vast majority see them as supplementing or being a partial alternative to the traditional fleet.

“The reasons for this are simple, we believe. Some of them are revealed in our research by showing how much employees value having a company car and the benefits it brings. The other is that, when a typical multi-stop journey is undertaken, a car is literally the only practical option.

“A mixed provision model is one that we have been saying for some time is the most likely to develop in the majority of businesses, where a range of mobility solutions are used alongside company cars with employees using the most appropriate form of transport for each journey.

“Our belief is that, over the next few years, as more and more fleet managers become mobility managers, one of the most interesting developments will be the process that businesses undergo in learning how to use mobility options in the most effective manner,” he said.

However, he concluded: “The company car is still going to play a major role. Often it is the practical choice, particularly where the driver does big mileage and multi-point stops. It also still has a role as a benefit. But there’s no doubt, mobility will be a bigger part of future travel solutions.”

In response to the rapidly-evolving business environment, last month Arval renamed its Corporate Vehicle Observatory report, which assesses company views on fleet issues across Europe, as the Arval Mobility Observatory (AMO).

Mobility is a hot topic currently, and in many countries the traditional fleet manager is starting to become more of a mobility manager. This is particularly so in Netherlands and Belgium where businesses are likely to adapt more readily to alternative and integrated forms of travel solution.

Consequently, the AMO survey has put greater emphasis on mobility this year, questioning fleet decision-makers on the desire to give up cars for alternative solutions as well as the use of alternative fuels.

If you have any questions regarding corporate mobility, please contact Thibault Alleyn, Global Consulting Director at FleetVision, the fleet and mobility consultancy arm of TÜV SÜD Group and sister company to Fleet Logistics, on +32 (0) 475 705 755  or email talleyn@fleetvision.biz