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Car sharing for companies - How it pays off

19. Sep 2022 | By Malena Gärtner

Car sharing is a popular alternative to owning a car for many private individuals, but car sharing is also becoming increasingly important in the business environment. Many companies want to reduce their fleet size or redesign it in an environmentally friendly way; in addition, car sharing offers the opportunity to reduce operating and administrative costs

How corporate car sharing works

Car sharing for companies is continuously gaining importance, as corporate car sharing offers advantages over all previous solutions. The basic idea is that all or selected employees are entitled to share the company's own fleet of vehicles according to certain criteria. This increases efficiency, as fewer vehicles are needed, the intensity of use increases and flexibility is enhanced. All participating employees are given the opportunity to select and reserve the appropriate vehicle from the available pool.

Software-supported solutions are therefore particularly well suited, as they reduce administrative effort and provide relevant information for all users. It is always apparent when and where a vehicle is available, so that employees can plan their trips and appointments without stress. Car sharing for companies is often organized as a location-based model; greater flexibility is offered by the free-floating variant, in which several locations are included in the system.

Cars next to each other
Cars next to each other

Good reasons for corporate car sharing in the fleet

There are many good arguments for companies to integrate corporate carsharing into their fleet processes. One important aspect is the optimization of procurement, as corporate carsharing enables the efficient use of the vehicle fleet and new acquisitions can be planned without time pressure. The company vehicles available in the carsharing fleet are now available to several employees, so that potential savings can be realized in corporate carsharing by reducing the number of vehicles and lowering the costs of fleet management.

The pool solution in corporate car sharing is a win-win for employees who don't own a vehicle or don't use it to get to work. They can use the company fleet for appointments or business trips and avoid stress by booking early. Private use is also possible in many cases, making vehicles available over the weekend or replacing expensive rental cars for vacation trips.

These are important carsharing benefits, especially since a pool solution creates space in the parking lot, but also reduces the burden on the company and the vehicle fleet. It also opens up the possibility of increasing the proportion of e-vehicles in the fleet and thus realizing longer usage times and lower energy and maintenance costs. Mobility expenses can be reduced by up to 40% and the vehicle fleet can be expanded to include e-bikes and e-scooters. Corporate carsharing thus offers the possibility of reducing fleet size, implementing sustainability concepts with e-mobility, and improving the image by reducing CO² emissions.

Financial and organizational potentials in car sharing for companies

Savings on stationary vehicles

One of the most important corporate carsharing benefits is the efficiency of the carsharing fleet. Vehicles are not assigned to a specific person, but are shared, so corporate carsharing allows for savings in fleet size, more efficient use of existing vehicles, and flexibility in changing the vehicle pool.

Savings in administration

The corporate carsharing app offers important corporate carsharing benefits, as key management and key handover are no longer necessary and the driver's logbook is kept automatically by transmitting usage data. Employees no longer have to use their private vehicles for business trips and submit statements, which reduces the amount of private time spent and relieves the burden on the accounting department, which previously had to check and account for submitted documents.

Transition from company car to car sharing fleet

Owning a company car means prestige and enables personal mobility. However, leased vehicles are a burden on the company and cause high personal costs for the employee, so the car sharing fleet is the optimal alternative. Company cars become pool vehicles, thereby maintaining mobility and employees can save taxes.

Increasing efficiency through digitization

Car sharing for companies can be implemented particularly efficiently if digital solutions are available. They enable all authorized persons to access the vehicle pool and reserve and use vehicles without additional administrative effort. Clarity and a close usage cycle are ensured, so that the company can realize its mobility goals with just a few vehicles and benefit from the car sharing advantages.

Fleet Manager
Fleet Manager

The implementation of car sharing for companies

Corporate carsharing is already being implemented by many fleet managers. However, in many cases, unsuitable tools are used that do not contribute to increasing efficiency. The best variant in corporate carsharing is a flexible carsharing software that functions as a booking tool and through which all available vehicles are managed, used and billed. All authorized persons are added, and in addition, an electronic key cabinet should enable direct access to the vehicles via the corporate carsharing app. Usage rules are defined, management tools are integrated and information is made available, and it is also possible to customize the software to the company's needs.

A functioning software offers numerous corporate carsharing benefits, as vehicles are made available in an uncomplicated manner and information on utilization is available. processes can be optimized at any time, and a distinction between private and business journeys simultaneously makes it possible to filter out monetary benefits and guarantee correct accounting vis-à-vis the tax office. the software is most efficient when a cloud solution is available, as location-independent access is particularly effective in conjunction with the corporate carsharing app. the app can be used as a key for using the vehicles and transmits all relevant data to the fleet management system in an uncomplicated manner.

Conclusion

The question - car sharing what is it? - is rarely heard in companies anymore. Today, fleet managers are much more interested in how they can integrate corporate car sharing benefits into their processes. A pool solution is only an organizational effort at the beginning. With the help of a suitable software solution, costs can quickly be saved in the company and among employees, administrative effort can be reduced, and sustainability goals and image gains can be achieved.