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Employers ‘not ready’ to give up company car benefit

Row of parked cars

Half of UK businesses are interested in trying corporate mobility solutions, but just 2% would consider giving up their company cars, according to new research from Arval.

When questioned, 48% of UK fleets said they would consider using car and ride sharing in the next three years, the highest percentage across a dozen European countries included in the survey.

However, just one in 50 (2%) said that they would give up their company car for car sharing (when a vehicle is used by more than one person) and it was the same figure for ride sharing (when more than one person makes the same journey).

The findings come from the 2018 edition of Arval’s long-established Corporate Vehicle Observatory Barometer, research which covers 3,718 fleet decision makers.

Shaun Sadlier, head of Arval’s Corporate Vehicle Observatory in the UK, said: “There has been quite a lot of talk in the media and elsewhere about the rise of mobility solutions. We support this discussion – we have recently introduced a range of mobility products ourselves and believe that they will come to play a larger role in business travel.

“However, the fact is that the company car has been the number one business travel solution in the UK for approaching 50 years now for a long list of very good reasons. It remains the most efficient, cost effective and popular way for most employees to undertake the journeys they need to make.

“This is especially true when you look at the real-world routes that company car drivers take, which often include multiple stops or travel to places where there is simply no practical public transport alternative.

“Plus, with the attention that is given to controlling the emissions of company cars, there is an argument that they are also among the more environmentally friendly solutions available.”

There was evidence from the Corporate Vehicle Observatory research that interest in mobility solutions was highest among larger organisations. For example, 7% of businesses with more than 250 employees were interested in ride sharing and 5% in car sharing.

“This makes sense,” continued Sadlier. “Ideas such as car and ride sharing are much more practical, in almost all cases, if you have more employees.

“A greater number of people opens up options in terms of sharing both journeys or vehicles to generate cost and environmental efficiencies."

Earlier this year, Arval launched a car charing product to supplement the short and mid-term rental solutions that it has had in place for some time.

 

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