In 2020, Bill Gates predicted that the world would witness a reduction in business travel due to the global pandemic. However, with successful vaccine drives and lockdowns lifted worldwide, corporate travel is steadily recovering. Although, we’re seeing a shift in commute trends.
According to a BTN Group survey, business travellers now prefer driving to flying. Additionally, 64% prefer to rent a car to drive to their destination, while 41% will use it to commute within the destination.
Besides being an employee preference, corporate car rentals also have other benefits. They facilitate safe employee journeys while optimising costs for organisations. Companies no longer need to maintain their own fleet of vehicles and bear huge overheads. They can meet their employees’ transport needs by enlisting the services of a corporate car rental company.
Let’s take a look at how corporate car rentals do this and what makes them an essential part of the modern workplace.
- Optimizes Cost
Companies where employees use their own vehicles often register for reimbursements. This might seem like a miniscule corporate expense but can add up to a large amount. With corporate car rentals, companies can eliminate this cost.
Corporate car rentals save a company overhead costs as well. For instance, companies managing their own fleet of cars have to spend on maintenance, servicing, updating certificates, and the like. Additionally, companies also need to hire drivers, which adds to the overall expense. In case of an accident, companies also have to bear the cost of repair.
All such costs are eliminated when companies enlist the services of corporate car rentals. The corporate car rental company bears the cost of maintenance, servicing, certification, and personnel remuneration.
- Promotes Employee Experience
Corporate car rentals improve the employee experience by streamlining their transport needs. All that employees need to do is book a car of their choice at the cost and specify pickup and drop-off locations. Designated drivers meet them at the chosen time and allow them to have a stress-free journey. Corporate car rentals can make vehicles available at short notice, addressing emergencies as well.
Engaging a corporate car rental company eliminates stressful and time-consuming tasks like navigating traffic and parking. Employees can take the commute time to address other work or take a break. This helps them to stay motivated and more active when they reach their destination.
Additionally, corporate car rentals help make employees feel valued. By addressing such issues like transport, organisations make employees feel heard, and that their problems are understood.
- Reduces Capital Expenses
Employee safety is a top priority for any organisation. And so is keeping expenses to the minimum. Because reimbursements can often cost the company heavily, many choose to maintain their own fleet of cars.
While this may seem economical to organisations, it has its downfalls. Firstly, investing in vehicles is a significant expense for the company. Since this requires a high upfront amount, companies must plan adequately and acquire funds. Further, large companies may require a considerable number of cars to meet their employees’ transport needs. This can further increase the expense.
Secondly, the value of vehicles reduces over time. The price of cars falls within months of the purchase. This can be especially detrimental today as many companies adopt the hybrid workplace model. The number of employees working from the office fluctuates, affecting the company’s vehicle needs.
If organisations find that employee needs and preferences have changed, resulting in a lower requirement for vehicles, they will have to bear the cost of cars standing idle. Even in the case of a sale, it is impossible to recover the total cost.
Corporate car rentals help companies avoid such situations. Providing cars on a need basis saves organisations substantial capital expenditure.
- 24×7 Customer Support
Corporate car rentals offer 24×7 customer service to address any issues companies or employees might have regarding their commute.
For instance, in case of a breakdown, accident, or other unforeseen impediments, the passenger or facility manager can contact the corporate car rental’s customer service for help. Depending on the situation, a new car can be sent to prevent further delay in the employee’s schedule.
Having a strong support system that has all the required information helps the employee feel secure and works to deal with emergencies efficiently.
Corporate car rental services provide round-the-clock assistance with any issues arising before, during, or after the journey. From a delay in the pick-up to addressing billing queries, the corporate car rental’s customer service ensures that companies and their employees have a seamless experience.
- Reduces Company’s Carbon Footprint
According to the Emissions Gap Report 2022, the world must cut emissions by 45% to prevent a global catastrophe. And an analysis by the World Economic Forum finds that global CO2 emissions from fossil fuels are record high this year.
Governments, organisations, and individuals globally have taken up several initiatives, such as incentivizing the purchase of electric vehicles, planting trees, and reducing the use of plastics. Companies can do their part by adopting environmentally responsible business strategies, such as partnering with corporate car rental agencies.
By streamlining transport needs, corporate car rental services help companies work towards a sustainable future. Instead of maintaining their own fleet of cars and adding to the rising pollution, companies can book cabs as per requirement and reduce the number of vehicles on the road.
Engaging a corporate car rental company improves the company’s brand image too. Reuters Events found that 65% of those surveyed were more likely to work for a company with strong environmental policies. Today’s employees want to work with companies that work towards reducing their carbon footprint and improving the future. And companies unwilling to do so risk losing talent, thus jeopardising their industry standing.
To Sum Up
Corporate car rentals allow companies to meet their employees’ transport needs seamlessly. This service becomes essential to the modern workplace by optimising cost, improving employee experience, and helping companies function more sustainably.
Additionally, organisations can implement transport management systems for an improved commute experience.
At MoveInSync, we offer Rentlz, a SaaS solution that provides rental cars for a seamless transportation process. Our solution helps companies automate the entire process, from booking a car to generating billing data. Our software allows companies to function smoothly with features such as live transport management, real-time tracking, and customised reports and analytics.
To learn more, visit our website and book a demo today!