Will Mobility as a Service affect your future fleet strategy?

MaaS, what does it mean, and will it impact your fleet strategy in the future? Christopher Caddick, Head of Business Development at JCT600 VLS gives us an insight…

With increasing focus on reducing carbon emissions, combined with advanced technology and a more service-led approach to transport, Mobility as a Service (MaaS) encompasses various forms of transport and transport-related services into a single, comprehensive, and on-demand mobility service. While there are several strands to what MaaS will mean for end-users, for businesses it will be how they approach their travel requirements.

As we continue to see wider business travel considered under an overall mobility strategy, rather than separate travel, car and operational vehicle policies, the industry is once again innovating to support businesses and their employees. The obvious evidence of this is the growth in Mobility as a Service solutions and the use of travel budgets, sometimes as a replacement for a perk company car. While this will work for some employers and employees, a one-size-fits-all approach is not going to work for everyone.

Like cash allowances, offering employees a travel budget could be one way for businesses to put a simple and cost-controlled solution in place to cover work travel costs. However, it’s important to understand each employee’s travel requirements, what they value as an individual in business travel, and ultimately what is ‘in it for them’.

Providing employees with a car has always been more than just covering business miles, it’s a ‘perk’ or benefit for that particular role, and a hugely emotive one. Following the ‘dash for cash’, the industry is seeing a huge change in employee behaviour and a return to the company car. This is heavily supported by low benefit in kind charges on electric vehicles and the re-popularisation of salary sacrifice schemes, coupled with changes to buyer behaviour and individual appetite to risk.

A hybrid approach could work well for businesses wanting to offer employees a valuable incentive. Providing a choice of options such as a travel budget to use on any form of transport or a vehicle funded via salary sacrifice, will give the employee greater flexibility and choice over what they need from a travel point of view.

From the employee’s perspective, they need to fully understand all costs involved whatever the option they choose. This is exactly what we do with our customers and their employees via our Origo driver portal and our ongoing consultation.

In considering the overall business mileage mobility strategy, MaaS products will increase in popularity, but there will still be a desire for a car that can be used not only for business use but also commuting and private use too. Businesses that lead with the employees’ needs will excel in the future of mobility.