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Car Clubs and Business Travel: Opportunities and Barriers Chris Endacott Scottish Urban Car Club Forum
Car Clubs and Business Travel:
Opportunities and Barriers
Chris Endacott
Scottish Urban Car Club Forum
Sustainable Transport Hierarchy
Scottish Urban Car Club Forum
Most sustainable
Least sustainable
Mode g/pkm CO2eTele-Conferencing 0 (kWhr)
Walking/Cycling 0 (food)
Bus/Tube/Train 83/71/58
Pool Car/Car Club* 115-150Hire Car* 115-150
Company Car* 155 (UK Average)
Grey Fleet* 195 (UK Average)
Long Haul Flight 79** (x 1.9 factor)Short Haul Flight 91** (x 1.9 factor)* Inc 15% Uplift ** x Distance!
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: NO2 and PM10.
• Safety – You are expected to manage Work Related Road Risk.
Scottish Urban Car Club Forum
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
Pool or Club?
Scottish Urban Car Club Forum
Demand? Travel Survey
Scottish Urban Car Club Forum
Monthly Usage Data Annualised
Miles Preferred Trips Av. m % Miles Trips
<=2 Walk/Cycle 198 1.7 0.72% 11,684 6,873
2-5 Cycle/Bus 875 3.9 7.26% 118,168 30,300
>5<80 Pool/Club 2,324 12.9 64.58% 1,051,656 81,524
80+ Hire/Lease 81 159.3 27.45% 447,026 2,806
TOTAL 1,628,533 121,502
• Change will impact on total mileage.• Can’t estimate fleet size from current use.
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
Diversity
Scottish Urban Car Club Forum
Lowest Cost?
Scottish Urban Car Club Forum
Scheme Fixed Cost Units £/Mile Notes
HMRC £0.45 Tax FreeNJC £0.75 AverageNHS £0.65 Average
Pool Car (10K) £3.40 £/hour £0.50 HighestPool Car (15K) £3.90 £/hour £0.40 Highest
Car Club £5.20 £/hour £0.22 Fixed + MileHire Car £20.00 £/day £0.12 Fixed + Fuel
Which Mode?
Scottish Urban Car Club Forum
Which Mode?
Scottish Urban Car Club Forum
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
Alternative?
Scottish Urban Car Club Forum
• £4.50 for 1 hour then £0.45/mile to 30 miles, then £0.25/mile.
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
The Lost Mileage
Scottish Urban Car Club Forum
Item Value UnitsTotal Mileage 500,000 miles12% Inflation 60,000 miles10% Incentive 50,000 milesResidual 390,000 milesCost £175,500 £/annumOriginal Cost £225,000 £/annumSaving £49,500 £/annum
Scottish Urban Car Club Forum
Scottish Urban Car Club Forum
Category Factor
Disadvantage Inconvenience Need to Plan!
Cost 2 miles/2 hours
Risk of Failure Research!
Barriers Habit My car!
Familiarity New car design
Mileage payments Salary supplement
Financial Risk Engagement
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
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
Chris EndacottGfleet Services Ltd
Sustainable Transport ConsultancyShrewsbury
www.gfleet.co.uk
Scottish Urban Car Club Forum
