The world of mobility is constantly changing, but the current shift from vehicle ownership to Mobility as a Service (MaaS) will revolutionise the entire industry. 

Future economists may well refer to the current era as that of the great ‘global financial risk reduction,’ or similar because this is precisely what nearly every business and individual must do to stay in the game.

More people are renting rather than buying and many companies are selling off office space to accommodate flexible work. Everything from cellphones and laptops to kitchen appliances and medical equipment is available on lease/subscription agreements. It’s no longer affordable, or considered an investment, to own everything, whether it’s for personal or business reasons.

The mobility sector is one of the leaders in evolving business vehicle leasing and subscription frameworks, and this can be seen in many current employee vehicle fleets. 

How OEM staff vehicle schemes are setting trends 

Vehicle manufacturers, or OEMs, are often the first to trial new business vehicle leasing or subscription solutions within their own company fleet. They want as many employees as possible to drive their own products as this builds brand loyalty and serves a marketing function by turning employees into brand ambassadors.

However, this only works if the OEM can make its lease/subscription plan financially viable for as many employees as possible without adding risk to the company itself. Most manufacturers then use their fleet examples to show other companies how to transform their employee schemes. 

Why company/employee fleets are a snapshot of the future of mobility 

Many businesses tailor their employee fleets to suit not only fleet needs but also the principles of the business. For example: 

• Adding more electric vehicles to their fleet to reduce carbon footprints
• Flexible leased ‘pool’ vehicles, where vehicles are used as needed
• Ensuring all employees have access to reliable mobility when needed to improve performance
• Minimising cost to the company (and employees) by finding the most compatible business vehicle leasing solutions

By pushing the boundaries of the most cost-efficient way to provide employee mobility, companies are forcing all segments from vehicle finance to manufacturers and service suppliers to evolve with them. 

The stats

A report conducted by KPMG in the UK states: 

"Historically, the transportation industry has operated along largely linear value chains. This is all changing. Various sectors are converging, eager to seize revenue opportunities in a new mobility ecosystem. The result is a complex web of interconnected value chains.

We expect a multitude of new entrants to take a share of this new market, with unprecedented levels of partnership and collaboration in the search for new solutions.”

Global trends and statistics reports all point to a future dominated by business vehicle leasing and subscription models.  According to Statista: 

• By 2024, the projected revenue for the Car-sharing market worldwide is expected to reach a staggering US$13.44bn. 
• This revenue is anticipated to show an annual growth rate (CAGR 2024-2029) of 3.26%, resulting in a projected market volume of US$15.78bn by 2029.
• The number of users in this market is also expected to rise significantly, reaching 68.19m users by 2029, with a projected user penetration of 0.7% in 2024 and 0.8% by 2029.
• Moreover, the average revenue per user (ARPU) is expected to amount to US$235.50.
• It is interesting to note that 95% of the total revenue generated in the Car-sharing market by 2029 will be through online sales

In South Africa

South Africa is quickly catching up with business vehicle leasing/subscription solutions, especially in the business sectors. Companies that rely on fleet vehicles for any reason are increasingly opting for solutions that offload risk, improve business operations and lower costs. 

A simple online search will show the myriad of available business leasing/subscription options, from private vehicles to full business fleets. The catch, as with any new trend, is to ensure you find a reliable fleet partner, especially if you’re considering these solutions for your business. 

Read our fleet leasing FAQs for some points to consider and contact us to find out how a leased fleet can work for you.