Increasingly complex travel demands causing Public Sector organisations to investigate new approach to business mobility

posted on January 26, 2015

With environmental and efficiency targets to achieve, Public Sector organisations are increasingly re-examining their Grey Fleet vehicles and investigating alternative approaches to travel, according to new research from business mobility specialist Alphabet.

The research, which was conducted by iGov on behalf of Alphabet, reveals that while over half of Public Sector organisations (55 per cent) business travel is undertaken by drivers in grey fleet vehicles, concerns around mileage costs (39 per cent), administration (36 per cent), environmental impact (34 per cent) and health and safety (33 per cent), are stimulating organisations to explore a range of alternative mobility solutions in order to achieve transport efficiency targets.

According to the survey, just under a fifth (18 per cent) of organisations now offer their employees access to a corporate car sharing or car club service, while only 36 per cent of organisations do not offer daily rental vehicles as a business travel option. Such solutions are helping Public Sector organisations to not only cut costs, but reduce the amount of time spent on administrative tasks, leaving staff free to focus their time and resource on other areas of the business.

The research also indicates a shift towards alternative fuel vehicles, with nearly one fifth (18 per cent) of organisations currently using electric vehicles (EVs) for business travel, and 30 per cent of these businesses planning to increase the number of EVs in their corporate fleet within the next 12 to 18 months. This is likely a result of focus to meet organisational sustainability targets, with over a third (35 per cent) of survey respondents indicating that environmental factors are now part of their business travel targets. Of those companies that have not yet made the move towards EVs, the barriers to adoption were cited as cost, range anxiety and the availability of charging infrastructure. Yet, with the introduction of Government grants and new electric consultancy services such as AlphaElectric, such barriers are starting to be re-examined and overcome.

“While the Grey Fleet remains significant within Public Sector organisations, the hidden financial and environmental costs, combined with concerns around duty of care, are causing more organisations to re-examine how to reduce their grey fleets and focus on vehicles that are appropriate and fit for purpose,” comments Dean Hedger, Head of Public Sector at Alphabet.

“Many companies are now turning to us for guidance and support on how to move away from traditional methods of transportation. It’s clear that a ‘one size fits all’ approach is no longer desirable or workable, so we’re helping organisations to think beyond the vehicle and identify the most suitable mobility solution for the individual and the journey, whether that may be an electric vehicle, public transport or a car sharing service. As a result, we’re seeing the emergence of Public Sector organisations that are leading the way with the adoption of new and innovative mobility solutions,” Hedger continues.

In order to help organisations meet increasingly demanding business needs, Alphabet provides a consultative approach to business mobility, focused on understanding and solving organisations unique business travel challenges. The company’s 360° approach, combined with its rental service AlphaRent, innovative Corporate CarSharing solution, AlphaCity, and EV consultancy, AlphaElectric, enables Public Sector companies to not only meet increasingly aggressive environmental targets, but to significantly reduce the total cost of mobility with the organisation.

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