The number of mobility options continues to increase, but how can efficiency improvements and costs savings of different modes be best managed? John Challen investigates

Mark Newberry, commercial director, Europcar Mobility Group UK

Mark Newberry, commercial director, Europcar Mobility Group UK

Despite headwinds, fleet managers are making real progress in driving change to get their organisations in good shape for decarbonisation.

Europcar has recently commissioned research of UK fleet managers to find out how they’re progressing when it comes to delivering greater sustainability. The full results are the basis for a new whitepaper ‘Switching sustainability from buzzword to business benefit’ later this month. Ahead of the publication, I can say that the signs are pretty positive.

Over half already have electric vehicles on fleet; the same goes for hybrids. The numbers might be quite small, but it’s a clear sign of intent that the transition is already underway. However, the reality is that very few businesses are able to make a wholesale switch to electric – partly because of supply issues; partly because of cost and partly because of a lack of understanding about the real impact. Instead, a transitional strategy, reducing emissions alongside testing new powertrains, is being widely adopted and will become ever more important as current fleet vehicles age.

The hybrid working model, which has become increasingly accessible and popular since the first Covid lockdown, is certainly changing some aspects of business travel. And more and more, businesses are asking what forms of mobility can be used for a trip. Even small changes add up – every petrol or diesel vehicle mile removed from the road reduces carbon emissions.

Heroes of the Hour

Confidence in charging infrastructure also needs to be addressed and our research threw the spotlight on just how much businesses are becoming the heroes of the hour in this respect. We found that firms are offering a range of vehicle charging options to employees.

Over half either provide charging options on the business premises or a contribution to at home charging; 50% provide a company charging card for use ‘on the go’ And for those that don’t currently offer charging facilities on the business premises, 88% say this will definitely or probably change in the next three years.

Of course, there are still challenges but there is a real willingness for change. At Europcar we are encouraging and supporting our own company car drivers to transition to EV. Indeed, 90% of orders for company car vehicles in the last year have been EV or hybrid.

So now really is the time for fleet managers to act

David Savage, vice president, UK and Ireland, Geotab

David Savage, vice president for UK & Ireland at Geotab

The progression towards zero-emission transportation is moving steadily, but it can always do with an extra push. While carbon neutrality is an all-important goal, it needs marrying with cost-effectiveness, timing and just ‘getting it right’. In the meantime, it’s important to maximise the efficiency of what you already have so that when it comes to implementing change, the right foundations are in place.

Always start by understanding how your vehicles are being used on a day-to-day basis. This can present opportunities to reduce costs and utilise your assets to the maximum advantage. Some changes are simple, such as reducing fuel usage by monitoring inefficient driving behaviours such as excessive idling or harsh acceleration. Other changes are more thorough like car-sharing based on vehicle utilisation over a given period – but both improve overall efficiency whilst directly reducing your environmental impact, something our fleet sustainability suite is designed to do.

Another inevitable cost is servicing, maintenance and repair. In last-mile delivery operations, unscheduled downtime of a vehicle can cost as much as £2,000 a day in lost revenue. Predictive maintenance is a much better way of managing your fleet – what if instead of responding to a fault and bringing a car off the road for diagnosis, the fleet operator was notified remotely of early warning signs automatically?

Once your vehicle operations are optimised, the journey to electrification can begin with confidence.  Seeing how and when a vehicle can be switched to an electric vehicle (EV) alternative based on real-world cost and range information is key to minimising disruption in the long term. Our studies show six-in-ten vehicles could make the switch to electric today, saving companies millions of pounds in costs.

All of these methods to optimise and future-proof mobility are available now but must be led by data. To truly future-proof both public and private transportation, connectivity must be at the centre, with businesses such as Geotab dedicated to interpreting the data accurately and providing the insight.

Tori Jennings, marketing manager, Shell Fleet Solutions UK

Many fleet businesses are overwhelmed with all the mobility options available on the market. At times there can be so much competing information that it can be easy to fall into a trap of seeing all the things you can’t do, instead of focusing on what is possible. Shell Fleet Solutions works on the understanding that trusted cooperations are key to getting impartial expert advice, and not simply going for offers that don’t provide you with an understanding of your current and future business needs.

Starting with a simple overview can determine where the fleet is now and then prioritise the company objectives. We often see fleet managers who want to decarbonise but have a more urgent need to manage their costs. Other fleet managers will focus on the cost of fuel without considering other factors which determine fuel consumption, such as vehicle performance and overall total cost of ownership. And there may be different stakeholders in the same business with different objectives.

It might be that more information is needed such as an overview of network requirements and fuel and energy price considerations. Or an assessment of telematics data or a free trial of telematics to gather insights might be required.

Using a carbon calculator to work out the emissions of the fleet and identify potential opportunities of changing to cleaner lower carbon fuels is also an important step in finding out the best way forward.

Shell is able to help fleets manage mobility challenges in numerous ways. For example, the Shell fuel card gives access to Shell Fleet Hub, which provides insights and direction on efficiency gains, fuel spend management and fraud alerts. Importantly, the card can be used to pay for both traditional fuels and EV charging. One card, one invoice for your whole fleet.

In addition, Shell Tap Up is a mobile refuelling service, which refuels fleet vehicles at the depot. This has multiple benefits including skipping rush hour queues at the fuel station, reducing fuel consumption and increasing operational efficiencies. It provides optionality in switching to lower-carbon fuels such as HVO and GTL.

Oz Choudhri, head of mobility solutions UK & Ireland, Enterprise

The travel policy sits at the heart of flexible mobility provision. Many organisations are developing smarter and more flexible travel policies to ensure the best outcomes through a period of immense change for employees and as the number of mobility options burgeons.

Businesses are looking for external consultancy to help develop their policy in a number of areas, from assessing emerging mobility options to understanding new travel habits to driving behaviour change.

As well as examining how employees currently travel, it’s important to engage and benchmark with other organisations to determine what the policy should look like, what best practice exists and how it ties into business objectives such as efficiency, cost reduction or decarbonisation.

As the choices available to fleet decision-makers evolve, the first step is often the identification, collation and interpretation of the right data on existing and future employee travel behaviours, both regionally and nationally. This is where platforms such as Enterprise Travel Direct (ETD) can both help capture employee mobility habits and also guide behaviour change by linking booking options to the travel policy.

We can then use this information to design solutions that support hybrid and remote workers while enabling businesses to achieve other goals such as decarbonising company travel.

Prior to the pandemic, office-based employees used pool cars located at their place of work for business journeys. Far-reaching changes to working practices mean that it may now make sense for businesses to consider replacing pool cars with short-term rental or dedicated car club vehicles, the numbers of which can be scaled up or down as needed.

The increase in home or hybrid working means that access to vehicles close to home can be vital for employees. This highlights the importance of a rental provider having an extensive network, and not just focused on airports.

Many organisations are now looking to add new solutions such as car clubs and bikes as options for business travel, as well as examining how best to combine modes to make trips shorter, cheaper and with less environmental impact.

Beverley Wise, Webfleet regional director, Bridgestone Mobility Solutions

Beverley Wise, Webfleet regional director, Bridgestone Mobility Solutions

There has been much talk of a mobility revolution over recent years, bolstered by a growth in transport innovations, connected technology systems and journey optimisation tools.

In truth, however, the trend is proving to be more evolutionary. There are signs that UK organisations are slowly developing more flexible approaches to travel, with staff being encouraged to use different transport options. Traditional fleet management is gradually giving way to smart mobility – but we are just out of the starting blocks.

Mobility allowance schemes may be becoming more commonplace in countries such as Germany, the Netherlands and Belgium, but their introduction in the UK has been slower.

Here, it is the drive to net zero that is bringing about the biggest change to the mobility landscape, with fleets at the very epicentre of electrification.

A flexible approach is proving key to this transition, with many businesses dipping a toe in the water. We are seeing electric vehicles (EVs) being tested to prove the use case, while software solutions such as Webfleet are being leveraged to model potential Total Cost of Ownership (TCO) gains.

Planning reports are offering visibility over the typical mileage and type of journeys undertaken by drivers, signalling which vehicles to switch to EV alternatives and helping shape the most effective charging strategies.

In time, TCO – which calculates the costs of vehicles over the period they’re retained, from leasing and purchasing costs to fuel, maintenance, tax and insurance – is sure to increasingly make way for Total Cost of Mobility (TCM) decision-making. TCM not only takes account of all modes of transport, but also wider expenditure such as parking and travel management.

Telematics insights are already being used to improve everything from fleet composition, to how and where vehicles are maintained and wider business planning – all of which have particular import amidst the current cost of business squeeze. This telematics data that will provide the cost and behaviour insights needed to optimise the financial, efficiency and environmental impact of all mobility decisions.

Caroline Sandall-Mansergh, consultancy and channels development manager, Alphabet (GB)

Caroline Sandall-Mansergh, consultancy and channels development manager, Alphabet GB

Mobility preferences have undergone a major transformation over the past few years. When looking at convenience alone, cars remain a top preference for many drivers, especially those living outside of urban areas. However, post-pandemic and in a more climate conscious world, many are investing in alternative mobility options where the length and environmental impact of their journeys can be reduced. As a result, businesses are scrutinising their reliance on cars for travel, but it is important to strike a balance between this and ensuring all employees have access to the necessary transport options for the role.

Determining mobility options that are best suited to drivers requires agile and flexible thinking, coupled with an in-depth understanding of each employee’s mobility needs. This doesn’t necessarily mean investing in detailed modelling or telematics. Fleet managers can already make use of the tools and data that’s available to them. This can come from collaborating with travel, finance, and operations teams to provide insight into current cost profiles and business requirements. Surveying drivers on their travel preferences and routes can also help glean as much understanding as possible to allow fleet managers to assess changes that need to be made.

Making the best decisions for the business also requires a good knowledge of the travel marketplace. For this, fleet managers can lean on the expertise of leasing providers to gain a better understanding of how business mobility is changing, and then properly assess the alternatives available. Overall, managers must recognise that offering a greater mix of travel options is becoming the norm. As such, fleet decision-makers must create a framework that can offer employees alternative mobility options if they are a better fit for certain journeys.

Chris Horbowyj, UK sales director, Targa Telematics

Chris Horbowyj, UK sales director, Targa Telematics

Connected vehicles are a key topic in the automotive industry and many modern vehicles are now manufactured with connected sensors embedded inside, enabling geolocation, vehicle health and servicing data, amongst others, to be collected remotely in real-time. Targa Telematics has deep expertise in using information provided by these embedded sensors to deliver a wide range of innovative digital mobility solutions to its customers, without the need to install aftermarket hardware.

One of the main challenges in deriving value from this new trend is the lack of consistency between the data provided by different manufacturers. With no agreed standards, the data provided by carmakers differs, not only in terms of the information provided, but also the structure and frequency of the data. For fleets containing vehicles from a variety of manufacturers, this lack of homogeneity can be an obstacle to benefiting from the connected data within their fleet.

Targa Telematics enables its customers to overcome the technical, commercial, and legal complexities of sourcing OEM vehicle data from multiple providers, allowing full visibility of their fleet, regardless of vehicle make or model, and avoiding downtime and additional costs for hardware installation. Furthermore, where the customer has vehicles in their fleet not equipped with embedded sensors from the manufacturer, Targa Telematics can quickly install its own manufacturer-approved devices to augment the fleet’s connected capabilities.