Corporate cars are idle 95% of the time: we reduce costs significantly by leveraging the sharing economy
- Geschreven door Niels de Greef
- Gepubliceerd op 2016-09-26
Until I founded ParkFlyRent, I did not have much experience in the automotive industry. Since then, I've always wondered about how much focus there is on cars while they move: how much CO2 it emits, whether it should be a diesel or a hybrid, the costs per km, which Tesla or VW would match the image that the company aspires to? However, the amazing fact is that a car is only running 5% of the time! Clearly, there is a huge opportunity for improvement: being 95% idle only adds unnecessary costs.
How can we help to reduce costs of idle corporate cars?
We noticed that there are two friction points when we can offer leasing companies and employers help to significantly reduce the costs of standing idle by deploying cars more efficiently:
- First, when an employee leaves the company and the fleet manager asks the car leasing company 'now we do not need that car, we surely end that contract, I suppose?". Which of course rarely is free of charge. In this case we can offer an alternative to storing idle cars in dusty sites or pool cars without users: we rent out these cars to carefully selected travelers and pay for the mileage, which contributes to a reduction by 50 % or more of the costs associated with being idle
- The second moment is when employees often travel for business and the company gets frustrated with airport parking costs of € 43 per day. Then we could step in and offer the employee a free parking with full service near the airport. If we can rent the car well, the employee (or employer, depending on the agreement) also share in the rental income.
Disruptors in huge markets
With these services, we are a disruptor in a huge market. But how big is this market exactly?
- The car rental market in Europe accounts for €10.7 billion turnover per year, of which more than half is airport-related.
- Spending on corporate lease cars in Europe is more than €180 billion per year; every 1% downtime thus represents a 1.8 billion opportunity loss.
Ways of working
Our ways of working make ParkFlyRent a reliable and valued business partner for more and more players in the enterprise mobility market. This is due to our extensive damage registration and fast damage claims handling, our Bovemij insurance policy, flexible agreements on how to share the rental revenues and simply excellent personal service. The risks of your cars being involved in an accident is extremely low, in our experience. Finally, we also help other entrepreneurs to build a better future themselves by sharing with them 10% our profits through the Wakibi Foundation (in Dutch).
hat is why we regularly are awarded with prizes: we have won the ANWB Sustainable Mobility Award, and recently the Athlon Smart Mobility Award.
Would you like to explore how we could reduce the cost of downtime for you? Please contact us via email@example.com call us at +31-(0)20-2616008
Note: Picture 'car parks' is taken by eGuideTravel.com and is used under Creative Commons licence