Fleet News

Public sector organisations look for grey fleet alternatives

Public sector organisations are increasingly re-examining their grey fleet vehicles and investigating alternative approaches to travel, according to new research from Alphabet. 

The research, which was conducted by iGov, shows while over half of Public Sector organisations (55%) business travel is undertaken by drivers in grey fleet vehicles, concerns around mileage costs (39%), administration (36%), environmental impact (34%) and health and safety (33%), are stimulating organisations to explore a range of alternative mobility solutions in order to achieve transport efficiency targets.

Just under a fifth (18%) of organisations now offer their employees access to a corporate car sharing or car club service, while only 36% of organisations do not offer daily rental vehicles as a business travel option.

Such solutions are helping public sector organisations to not only cut costs, but reduce the amount of time spent on administrative tasks, leaving staff free to focus their time and resource on other areas of the business.

The research also indicates a shift towards alternative fuel vehicles, with nearly one fifth (18%) of organisations currently using electric vehicles for business travel, and 30% of these businesses planning to increase the number of EVs in their corporate fleet within the next 12 to 18 months.

This is likely a result of focus to meet organisational sustainability targets, with over a third (35%) of survey respondents indicating that environmental factors are now part of their business travel targets. Of those companies that have not yet made the move towards EVs, the barriers to adoption were cited as cost, range anxiety and the availability of charging infrastructure.

Yet, with the introduction of Government grants and consultancy services, such barriers are starting to be re-examined and overcome.

“While the grey fleet remains significant within public sector organisations, the hidden financial and environmental costs, combined with concerns around duty of care, are causing more organisations to re-examine how to reduce their grey fleets and focus on vehicles that are appropriate and fit for purpose,” said Dean Hedger, head of public sector at Alphabet. 

“Many companies are now turning to us for guidance and support on how to move away from traditional methods of transportation. It’s clear that a ‘one size fits all’ approach is no longer desirable or workable, so we’re helping organisations to think beyond the vehicle and identify the most suitable mobility solution for the individual and the journey, whether that may be an electric vehicle, public transport or a car sharing service.

"As a result, we’re seeing the emergence of public sector organisations that are leading the way with the adoption of new and innovative mobility solutions,” Hedger added.

Click here for electric cars and hybrids best practice and procurement insight

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee