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55% of public sector fleets using grey fleet vehicles

By / 9 years ago / Latest News / No Comments

The research, which was conducted by iGov on behalf of Alphabet, reveals that while over half of public sector organisation (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. 

According to the survey, 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.

The research also indicates a shift towards alternative fuel vehicles, with nearly one fifth (18%) of organisations currently using electric vehicles (EVs) 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.

According to Alphabet, 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.

'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.'

Alphabet provides a consultative approach to business mobility, focused on understanding and solving organisations unique business travel challenges. The company’s 360° approach, combined with its rental service AlphaRent, innovative Corporate CarSharing solution, AlphaCity, and EV consultancy, AlphaElectric, aims to help public sector companies to not only meet increasingly aggressive environmental targets, but to significantly reduce the total cost of mobility with the organisation.

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Katie Beck

Katie joined Fleet World in 2012 as an editorial intern, following the completion of an English and American Literature BA from the University of East Anglia. She accepted a full-time position as an editorial assistant at the end of the internship period, and was promoted to the role of features editor in 2014. She works across the magazine and website portfolio, and administrates the social media channels.