29 Jul 2024
Is fleet carpooling right for your business?
Weighing the pros and cons.
Fleet carpooling could be the future for more businesses. But what exactly is carpooling and how does it work?
Carpooling means your employees share business vehicles, rather than having their own company cars. It’s a strategic approach for businesses looking to reduce their costs and become greener.
In this guide, we’ll explore how fleet carpooling works, what to consider, and the pros and cons.
Fleet carpooling: How does it work?
First, let’s look at how fleet carpooling works in some more detail.
Your business leases or purchases a pool of vehicles your employees can use for business purposes, rather than providing each employee with a company car. When they’re done with their pool vehicle, they simply return it for the next person who needs it.
A booking system – usually anonline platform or app – makes it easy for your employees to reserve a car from the company pool. Your business handles vehicle maintenance, insurance, and scheduling to make sure they’re kept in good condition and available when needed.
If you're leasing your fleet, you could outsource the maintenance, insurance and admin to your lessor.
There are a few things to consider before implementing fleet carpooling, including:
Comprehensive insurance coverage
Pool car insurance needs to cover everyone who might use your pool vehicles. You’ll have to define who’s allowed to drive the company pool cars, and make sure you have clear procedures for reporting and handling accidents or damage.
Setting out clear pool car rules
You'll need clear rules for how your team uses the pool cars. This includes implementing clear booking procedures; making sure your team logs their vehicle use; and acceptable usage guidelines and responsibilities, including any rules on refuelling or recharging, infringements and fines while driving, and business use vs personal use.
Implementing efficient booking systems
An easy-to-use booking system is essential for managing the availability of pool cars. Businesses should choose a platform that makes it easy for employees to view availability and book a pool car so there aren’t any scheduling conflicts, so you can make sure your fleet’s being used efficiently.
Advantages of using pool cars
From cost savings and environmental advantages to efficiency gains and more flexibility, there are plenty of advantages of using pool cars. But managing a pool can also bring some challenges. Here are a few of the advantages and disadvantages.
Cost savings
Fleet carpooling may be more cost effective for your business than maintaining a large fleet. You don’t just save on vehicles, but also their running costs, like insurance and maintenance, as you’ve got few cars in your fleet. Plus, you won’t need to reimburse employees when they use their own cars for work purposes.
Boost your company’s green credentials
Sharing vehicles means there’s fewer cars on the road, reducing your company’s carbon footprint. This is a win for the environment and can also boost your company’s green credentials. Choosing electric vehicles (EVs) or hybrid vehicles for your fleet can cut down your environmental impact even further (and reduce running costs).
More efficient use of your company cars
Pool cars may be more cost-efficient for your business than providing employees with their own company cars, giving you a better return on investment. Vehicles are less likely to be sitting around idle, making sure you’re maximising your resources.
Improved flexibility and convenience
Having a pool of vehicles available for employees to use when they need them improves flexibility for everyone. Fleet carpooling can be especially beneficial for businesses whose transportation needs might vary.
Disadvantages of pool cars
Logistical challenges
Managing a fleet used for carpooling means you’ll need a solid system in place to coordinate bookings, maintenance, and usage to avoid logistical issues, like scheduling conflicts or vehicles being unavailable when people need them.
A pool vehicle booking solution may also not work for your business is you’ve got employees geographically disbursed, as a pool booking solution typically relies on the vehicles being housed and available from a central point.
Potential for more frequent maintenance
When multiple employees are using the same vehicles, there’s a chance maintenance might increase, with employees having less accountability for keeping a company pool car clean and tidy than they would for their own car. Clear policies and regular inspections will ensure your fleet’s well cared for.
Increased administrative work
Unless you outsource the admin to a lessor, managing any fleet can be time-consuming. Ensuring proper insurance coverage, tracking vehicle usage, and handling maintenance takes dedicated resources and an effective management system.
Employee engagement
Company cars help to boost employee engagement as employees often view a vehicle as part of their total remuneration package (that can also be used for personal running around) is a great employee perk! So, offering a dedicated vehicle to help attract and retain top talent within your business is certainly something to consider. A pool vehicle solution doesn’t have quite the same positive impact.
Fleet carpooling: A strategic choice for your business
Fleet carpooling could save your business money, improve your environmental credentials and increase efficiency. While there can be some challenges to managing fleet carpooling, it could be a strategic choice for your business – and you don’t have to go it alone.
FleetPartners has decades of expertise in fleet management and carpooling. Our advanced pool vehicle booking system streamlines the reservation process for your team, making it easy for them to manage their bookings on the go. It also provides valuable insights through data intelligence.
Plus, we take care of everything else, from the admin of managing maintenance and insurance to quarterly reviews that make sure you have the right mix and number of vehicles.
Alternatively, if you decide that fleet carpooling is not for your business, FleetPartners can still help – whether you need just a few vehicles or a fleet of hundreds of vehicles!
Contact the FleetPartners team today to learn more about our fleet management solutions. Together, we can streamline your fleet management, improve your return on investment, and support you in your goals to reduce your carbon footprint.