May 31, 2021

Tackling stubborn fleet costs with ideas from the sharing economy

Smartrak’s Corporate Mobility eBook delivers two important messages: there’s a vision for maximised vehicle utilisation, and a corresponding pathway for significant fleet cost reductions.

Currently, utilising a pool booking solution to improve fleet efficiency is a proven way to reduce operational costs. However, even the best-run fleet will still hold onto some stubborn expenses you just can’t seem to shake off.

This is because vehicles cost money, even when they’re sitting idle. Insurance, compliance, maintenance, tied-up capital, space for carparking – the list goes on.

Your vehicle utilisation efforts may have succeeded in eliminating underutilised vehicles and right typing your fleet. However, you’ve gone as far as you can with a traditional approach. What you need now is a shift in thinking.

Smartrak has a wealth of experience when it comes to maximising fleet utilisation in order to reduce waste and cost. However, there’s only so much our technology can achieve when cars sit idle at the end of the working day. Worse still is when fleets acquire excess vehicles to meet peak demand. The majority of the time they'll sit in the car park unused, costing your organisation money.

Taking cues from the sharing economy

For a solution to these challenges, we turned to the ideas powering the global success of the sharing economy. Shared e-scooters and shared cars from outfits like Uber have maximised utility for the user. This ensures you only pay for what you need.

We've applied that thinking to the fleets our customers use. That put us on a development pathway that envisaged hiring out cars to employees outside of work hours, to expand overall utilisation and generate additional revenue. We also thought it would be a good idea if you could share your cars with another company, and visa-versa. This means that peak demand requirements could be met with fewer cars.

This thinking even extends to fleets that rely on specialist vehicles, imagine two construction companies sharing a road sweeper?

All of the data and experience we have points to sharing opportunities as being the best way to tackle the fleet costs that are a persistent drain on operational budgets. You can find out more about these exciting developments and the role vehicle sharing will play in Smartrak’s Corporate Mobility vision by downloading the eBook.

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