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Car Clubs and Business Travel: Opportunities and Barriers Chris Endacott Scottish Urban Car Club Forum.

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Presentation on theme: "Car Clubs and Business Travel: Opportunities and Barriers Chris Endacott Scottish Urban Car Club Forum."— Presentation transcript:

1 Car Clubs and Business Travel: Opportunities and Barriers Chris Endacott Scottish Urban Car Club Forum

2 Sustainable Transport Hierarchy Scottish Urban Car Club Forum Most sustainable Least sustainable Modeg/pkm CO 2 e Tele-Conferencing0 (kWhr) Walking/Cycling0 (food) Bus/Tube/Train83/71/58 Pool Car/Car Club*115-150 Hire Car*115-150 Company Car*155 (UK Average) Grey Fleet*195 (UK Average) Long Haul Flight79** (x 1.9 factor) Short Haul Flight91** (x 1.9 factor) * Inc 15% Uplift** x Distance!

3 Why Change? Cost Savings – all under pressure to make savings while maintaining the service. Cutting GHG – many organisations have Greenhouse Gas (GHG) reduction targets. For some in the public sector they are mandatory. Emission Reductions – Air Quality is a key issue in many UK towns and cities: NO 2 and PM 10. Safety – You are expected to manage Work Related Road Risk. Scottish Urban Car Club Forum

4 Urban Base – More Options First choice is walking, cycling, bus, tube, train. But if a car is essential what are the options? –Pool Car: Low carbon (under 120 g/km), low emission (petrol, Euro 5/6), safe (NCAP 5 Star). BUT utilization must be kept high and admin cost low. –Car Club: Low carbon, low emission and safe with a fixed cost and no internal administration. Very flexible: private use, public access. Offer Hire Cars for journeys over 80/100 mpd. Scottish Urban Car Club Forum

5 Pool or Club? Scottish Urban Car Club Forum

6 Demand? Travel Survey Scottish Urban Car Club Forum Change will impact on total mileage. Can’t estimate fleet size from current use.

7 Making Cost Saving Typical Pool Car will need to achieve ≈15,000 miles/annum to break even with HMRC rate. That’s equivalent to 75 miles/working day or about £29/working day or £500/month. In a small business or office this can be hard. High utilization easier for large organisations. –But small geographic area can be a problem. Scottish Urban Car Club Forum

8 Diversity Scottish Urban Car Club Forum

9 Lowest Cost? Scottish Urban Car Club Forum SchemeFixed CostUnits£/MileNotes HMRC £0.45Tax Free NJC £0.75Average NHS £0.65Average Pool Car (10K)£3.40£/hour£0.50Highest Pool Car (15K)£3.90£/hour£0.40Highest Car Club£5.20£/hour£0.22Fixed + Mile Hire Car£20.00£/day£0.12Fixed + Fuel

10 Which Mode? Scottish Urban Car Club Forum

11 Which Mode? Scottish Urban Car Club Forum

12 Car Club Charging Is the current cost model right for business? On cost both Pool Car and HMRC GF look OK. –Other benefits of easy of use/admin not at fore. How much demand for club cars is 9-5, M-F? Monthly flat rate has been tried with some success. Go-Low in Bristol charge £0.45/mile – HMRC rate. Something else needed to tempt LAs to join? –£4.5 first hour then £0.45/mile over 10 miles. Scottish Urban Car Club Forum

13 Alternative? Scottish Urban Car Club Forum £4.50 for 1 hour then £0.45/mile to 30 miles, then £0.25/mile.

14 Other Benefits Overall reduction in driven mileage. –Both real and virtual (claims inflation). –Saving in unproductive staff time. Staff do not need own car for work. –Releases car park space, saves money. –May become a one-car family. Opportunity to access new technology. –Hybrid, Electric and Plug-In Hybrid. Scottish Urban Car Club Forum

15 The Lost Mileage Scottish Urban Car Club Forum ItemValueUnits Total Mileage500,000miles 12% Inflation60,000miles 10% Incentive50,000miles Residual390,000miles Cost£175,500£/annum Original Cost£225,000£/annum Saving£49,500£/annum

16 Scottish Urban Car Club Forum

17 CategoryFactor DisadvantageInconvenienceNeed to Plan! Cost2 miles/2 hours Risk of FailureResearch! BarriersHabitMy car! FamiliarityNew car design Mileage paymentsSalary supplement Financial RiskEngagement

18 Business Use It needs to be the obvious and easy choice. Sellers should look at charging structures. Buyers need to think about wider advantages. Must also think outside the box (London): –Use of Car Club for multi-mode journey. –Walk-Tube-Train-Car can be very effective. Support staff with the mobile office too! –Too few organisations adopting cloud computing. Scottish Urban Car Club Forum

19 Healthy Staff! Car club users walk more.... National change since 1980: Walk 8 minutes less & drive 8 minutes more. = 26kcals/day = +1.2 kg fat/year. In 10 years = +12 kg fat BMI = Overweight. In 20 years = +24 kg fat BMI = Obese. May then stabilise as energy use re- balanced. Or may continue to +36kg. So join a Car Club! Scottish Urban Car Club Forum

20 Chris Endacott Gfleet Services Ltd Sustainable Transport Consultancy Shrewsbury 01743-366182 chris.endacott@gfleet.co.uk www.gfleet.co.uk Scottish Urban Car Club Forum

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