Comment: How public sector fleets can limit emissions and reduce costs
George Webb, senior business development consultant at Hiyacar, on how car sharing technology can transform NHS and local government pool fleet management.
George Webb, senior business development consultant at Hiyacar
Car sharing technology is helping NHS and local government organisations significantly reduce emissions and costs. By adopting digitally disruptive solutions such as Hiyacar, these organisations are less reliant on employee-owned vehicles, resulting in fewer cars on the road and contributing to the Government’s goal of lowering emissions by 65% by 2030. Such green initiatives also supports the Government’s transport decarbonisation plan to achieve zero-emission car fleets by 2050 and assist local authorities in promoting shared car ownership and shared occupancy schemes and services.
The NHS operates the nation’s second-largest fleet, comprising of more than 20,000 vehicles that collectively cover over 460 million miles annually. This fleet, together with the impact of commissioned services and employee travel, contributes to 36,000 deaths each year due to air pollution.
A recent 2024/25 report highlighting the financial challenges facing NHS organisations revealed that many NHS leaders are contending with ambitious efficiency targets, with some as high as 11%.
While the NHS received an additional £2.4bn in revenue funding allocated by the Chancellor in March 2024, over 60% of NHS executives indicate they’ll require additional government funding within the next year to improve their prospects of achieving efficiency targets. NHS organisations are currently experiencing some of the most severe financial constraints in years.
Car sharing via well managed vehicle pools is helping to alleviate the pressure of tight government budgets by transferring business miles travelled in employees’ own vehicles to modern greener less costly alternatives. These savings allow NHS organisations to allocate funds more effectively towards critical services and patient care.
Here are five ways car sharing supports ambitious targets and promotes sustainable, cost-saving practices across the NHS and public sector:
Transition to green pool fleets to reduce grey mileage and cut costs
In partnership with the Norfolk and Suffolk NHS Foundation Trust, Hiyacar successfully reduced emissions by 18.91 tonnes of CO2 and is estimated to save £53,000 annually using our booking portal and keyless technology. By shifting grey miles from employees’ personal vehicles to an efficient green pool fleet, the trust cut costs related to pence per mile payments, taxi fares and daily hires. The pool initiative also led to a significant reduction in emissions, as the average employee car, typically an eight-year-old conventionally powered vehicle, was replaced by pool vehicles that are less than three years old and are electric or hybrid. Moreover, employees are more likely to use public transport to commute if they can rely on a pool car for work, further amplifying the environmental benefits.
Driving the shift to electric vehicles for emission reduction
The London Borough of Waltham Forest introduced electric vehicle (EV) car clubs, offering staff cost-saving options and convenient access to nearby EVs. Within the initial two months, the program cut CO2 emissions by 135kg, with projections indicating a saving of half a tonne from November 2023 to November 2024. Despite a daily booking limit of five hours, the initiative achieved an impressive utilisation rate of 52.4%. Car sharing optimises vehicle usage, lowering overall emissions, enhancing air quality, and providing access to the latest EV models to support sustainable transportation solutions.
Harness revenue potential with fleet rental initiatives
Many local authorities are keen to extend the availability of their pool vehicles beyond regular office hours and weekends.
This approach offers dual benefits: it enhances mobility options for council taxpayers, many of whom struggle with affordability, while also generating revenue to offset vehicle operational costs. Hiyacar data highlights weekends and holidays as peak times for car sharing rentals, providing approximately 170 high-probability opportunities for additional income each year. With a rental rate of £50 per day, this could potentially yield £8,000 per vehicle annually, optimising budget allocation and reducing the financial burden on the public sector.
Technology meticulously records data such as mileage, duration of use, and routes taken for each vehicle booking, ensuring efficient tracking aligned with operational needs. Crucially, the platform also captures information on driving standards and styles during critical events, such as accidents.
Empower colleagues to save money and travel greener
A recent study conducted by the climate charity ‘Possible’ revealed that many low-wage rural care workers spend as much as £150 per month solely on petrol, Urging ministers to consider implementing a social leasing scheme for electric vehicles, the charity aims to help these workers save significant amounts of money and reduce emissions.
For NHS and public sector employees, car sharing presents an opportunity to save money and alleviate stress amidst the current cost-of-living crisis. As a business, we are actively addressing the financial challenges associated with individual vehicle ownership.
Through convenient mobile app reservations, workers can save time compared to traditional handover processes and reduce the need for costly long-term parking solutions, especially in urban areas. Providing accessible mobility options at strategic locations also promotes the use of public transport for commuting.
Driving reductions in road vehicle numbers
In 2022, the Department for Transport highlighted the benefits of car sharing programs, referencing a study predicting that a 1% annual increase in vehicle occupancy from 2022 to 2030 could remove 1.25 million cars from the streets and cut CO2 emissions by 1.25 metric tons.
Recently, Hiyacar launched a Closed Loop Car Sharing initiative in Buxton and Hope Valley. This program promotes sustainable local travel solutions by enabling residents to share cars exclusively within their community, with the aim of reducing individual car ownership. The objective is to alleviate traffic congestion, optimise parking space usage, and repurpose urban areas for more sustainable purposes.
Car sharing technology revolutionises NHS and local government fleet management by reducing costs and emissions through digital transformation. It streamlines operations and helps the public sector meet climate targets, offering an efficient, cost-effective, and eco-friendly pool fleet management solution.