This week”s Midweek newsletter Big Interview features Zipcar UK and European general manager Paul McLoughlin, who outlines how savings can be made by businesses using its car club.
Zipcar is the world's largest and fastest-growing car club, with more than 180,000 members and 5,500 vehicles in major US and Canadian cities including Boston, New York, Chicago, San Francisco, Washington DC, Vancouver, Toronto, plus London in the UK.
PM: ”With the price of fuel escalating, companies are looking more closely at the way in which travel budgets are being apportioned and partner suppliers retained. And with Corporate Social Responsibility (CSR) strategies becoming increasingly scrutinised and fine tuned, the issue of business travel planning and its use is finding its way further up the agenda to board level.
”Large and small organisations operating in an urban or metropolitan environment are becoming increasingly aware of car sharing clubs which deliver cars on demand by the hour or the day in an affordable and environmental manner. Car clubs partnering with train operators, airports and airlines, are also enabling businesses to receive a 360” cost effective travel service in a way never experienced before.”
How can businesses streamline their budgets in the light of escalating fuel and travel costs?
The price of fuel has now reached the ”1 per litre mark. Both businesses and consumers are modifying how they get from A to B. Faced with congestion charges, fuel and surcharge price rises and road tolls, many businesses are seriously rethinking the way in which they approach the issue of corporate travel, in particular the requirement for business car travel.
While traditionally synonymous with availability, taxi firms and car hire companies are not necessarily cost-effective nor do they wholly meet the specific end-to-end needs of business travellers.
How does this medium complement existing business travel arrangements and policies?
Introducing car club membership as the primary or as an additional mode of business transport, encourages business travellers and corporate staff to only use a car when they need one. It also reduces the reliance on 24hr car rental and also helps to lower overall carbon emissions.
What is the current perception of car clubs for business use in the UK?
Car sharing clubs should not to be confused with car sharing, the latter via which several individuals connect to share the journey in one vehicle.
A car club such as Zipcar pays for assigned parking, maintenance, congestion charge, insurance and even petrol. The service guarantees members the exact car they reserve, unlike rental car companies.
Members, whether on a large or a small corporate account, have unique access to a self-service, on-demand alternative to car ownership and eliminates time consuming registration and significant costs associated with renting or leasing a private vehicle.
How useful and efficient is it for international travellers around the US, UK and Europe?
While central Europe remains the epicentre of car sharing, business travellers can take advantage of it in the US and Canada as well as London. Certain operators are implanted in regional cities in the UK. In our case, simplicity and unique technology means members can book from a range of cars both in London and in North America in minutes online or via text.
In addition they can use the same smart card to activate reservations and unlock cars on arrival and departure, making it doubly cost effective, thereby cancelling the issues surrounding individual foreign car rental and separate, multiple financial transactions.
What regulatory or political measures are being introduced?
In London, Major Ken Livingstone confirmed that from October 2008, drivers of 4x4s and high emissions vehicles will be hit by a ”25 charge every time they enter the central zones in the capital between 7am and 6pm Monday to Friday. Businesses preferring to use car clubs can avoid this hassle and worry as the congestion charge, currently at ”8, is covered in the hourly price.
A new campaign and website, www.carclubs.org.uk, funded by Transport for London, also launches this week to increase awareness and demonstrate the benefits of car clubs. Transport charity Carplus is predicting an 11-fold rise in members during the next four years.
What about environmental concerns regarding increased emissions through company car use?
A survey by Zipcar in 2007 revealed that only one third of UK companies in London are investing in large-scale environmental initiatives, such as buying energy-saving office equipment or implementing car clubs to decrease carbon emissions.
Choice, affordability and environmental sustainability can be combined to make joining a car club an attractive, stylish, convenient and cost-effective service for business travellers and corporate employees. For example, some of the most environmentally sustainable hybrid cars available, such as the Toyota Prius and Honda Civic Hybrid, are currently being offered by ourselves in addition to classic BMWs and Volvos.
Businesses could do well to think about featuring car club schemes as a commercial off-set which aligns company CSR programmes with a ”green” HR business benefit.