Company Car Today

Businesses are unwilling to give up the company car and opt for a mobility solution instead, research from leasing giant has claimed.

In response to a question asking whether they would fully or in part give up their vehicle for a range of alternatives, 7% said they would probably or certainly opt instead 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 findings come from the 2019 edition of the Arval Mobility Observatory, research which covers 3,930 fleets and asks a wide ranging set of questions about fleet and mobility trends.

Arval said while just 3% of businesses with fewer than 10 employees would opt for car sharing while in those with 1,000 or more employees, this grows to 14%.

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.

He added: “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.”