Barely a day goes by without one of the fleet publications talking about mobility and how it, along with getting the right insurance, can help reduce running costs. But what exactly is ‘fleet mobility’? And how can mobility help owners of fleet vehicles – be they mini-fleets or large scale company fleets – save money and time? In this article, we’ll look at these issues in turn and ask is mobility the future of fleet?
What is Fleet Mobility?
Put simply fleet mobility is a new way of looking at how companies organise the movement of their people. In a world where businesses large and small increasingly need to be able to move their staff from place to place, firms are looking to reduce costs of fleet travel while lessening their environmental impact. Fleet mobility programmes often involve the merging of fleet, travel and compliance departments as employers look to reduce costs and create travel efficiencies.
Given such a sprawl of responsibilities – particularly the inclusion of travel – fleet mobility can encompass not just private cars but also public transport as businesses look to diversify their fleet costs. As Martyn Briggs of leading research company Frost and Williams puts it, ‘We are witnessing a shift away from just considering the total cost of ownership of fleet towards managing the total cost of mobility for the organisation.’
What’s Driving the Fleet Mobility Change?
The most significant driver of this change is cost. Despite the low levels of fuel prices and the availability of cheap insurance, fleet costs are still significant for businesses large and small and any way to reduce them are always welcomed. As we have said above, some organisations are using mobility to merge roles to decrease the administration costs of running fleets.
Environmental issues are also a big factor. Large corporations in particular have to closely monitor their carbon emissions with some even reporting them in their annual results. Fleet mobility, with its diversity of transport methods, can effectively off-set their carbon footprint.
Technological advances have undoubtedly facilitated this change. 10 years ago, before the advent of smart phones such as the iPhone, fleet mobility would have struggled as the required level of employee communication and vehicle tracking would have been nigh-on impossible. Today, with intelligent apps being able to give travel cost comparisons and get live updates at the touch of a screen and fleet managers able to track vehicles efficiently enough to allow fleet car sharing, fleet mobility is not just possible but often preferred.
The British Government has also thrown its weight behind the idea. As part of their ‘sharing economy’ plans, incentives are being made available for car sharing clubs and government employees are being asked to make use of new technology to reduce costs and the environmental impact of fleet travel through sharing.
The Future of Fleet?
The short answer to that question is: it depends. For large scale organisations with a large fleet of vehicles and a manager or managers, mobility looks like the way forward. Frost and Williams report found that around 5% of companies have already created the role of mobility manager and that another 22% believe that their fleet and travel functions could be merged providing they can find a technological solution to facilitate it.
For small companies, those with anywhere from 2-10 vehicles for example, the benefits are less clear cut. Mobility requires dedicated management and IT systems that may be beyond the reach of small and medium sized businesses. Also given the rush of low and even zero emission vehicles, the affordability of good quality insurance and the low cost of fuel, it’s fair to say that fleet vehicles as we know them will be with us for some years to come.
Like Some More Help?
Well we hope that’s given you some food for thought. If you’d like to know more about saving money on your fleet costs, or would like some help getting the fleet insurance cover that’s right for you, then please contact us. You can call us free on 0800 977 6037, email us by clicking here or get a no-obligation insurance quote here.
Coversure Hull is an independent fleet and business insurance specialist. From our base on the banks of The Humber, we offer comprehensive commercial vehicle cover, with particular focus on fleet and special types, alongside other essential business covers, namely commercial combined and liability.
Since opening in 2005, our combination of superb service and outstanding value for money business policies have established us as the insurer of choice for organisations both large and small.
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We have made it our business to protect your business. Whether you need fleet, landlord, liability or commercial combined insurance, we can offer you high quality cover from some of the UK’s leading insurers, all at highly competitive premiums that’s backed by our outstanding cover-to-claim service.
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For a friendly independent service and great value cover, contact Coversure Hull today. You can call us on Hull (01482) 434343, for free on 0800 977 6037 or you can email us by clicking here.
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