Mapping the Future of Vehicle Leasing

Mapping the Future of Vehicle Leasing

MaaS. What do I need to know?

The start of 2020 and the first thing that we need to identify is “What’s coming?”

We expect more changes in how people want to travel, the technology they use, and how governments are attempting to improve the environment, which can be verified with the Government policies on show and also the nature of the recent budget. These developments will affect the future of car leasing. When armed with these insights, you'll be better able to adjust your fleet management plan for optimal performance.

The Rise of Mobility as a Service

An emerging trend continuing to grow globally is a shift away from personally-owned vehicles toward mobility solutions that are services (MaaS). First piloted in Hannover, Germany in 2014 and fully launched in 2016, MaaS represents a significant evolution in the way people can travel. MaaS allows the blending of public and private transportation by consumers in a customised, trip-by-trip way that fits specific journey needs. MaaS solutions focus on convenient user experiences. The consumer gets a holistic view of transport options, can plan a trip using multiple sources and pays with a single charge.

In 2018, the global market for Mobility as a Service, including taxis, ridesharing, bike sharing, bus service, and self-driving cars reached $38.8 billion (USD). With expected growth rates of more than 30% annually, the market may generate more than $350 billion by 2025.

What’s Driving the Interest in MaaS

Several factors underline the growth of Mobility as a Service, including the cost of transportation, urbanisation challenges, and demands for frictionless solutions.

  • Transportation is expensive. Consumers in the U.K. alone, spend about 14% of their income on transport, second in priority after housing. Across the country, this represents roughly £100 billion annually.
  • People are deciding to relocate to larger cities. Urban density is increasing, with cities expected to hold about two-thirds of the global population by 2050. Commuting quickly and cost-effectively through MaaS solutions is critical to city dwellers, who are putting additional strain on already overcrowded transport systems.
  • Some city-dwellers are choosing to give up their cars. The availability of transport options combined with the lack (and expense) of parking space has pushed many city-dwelling consumers away from car ownership. According to a study by the Transport of London, about half of Londoners don’t own a car.
  • Younger generations in the workforce are delaying car purchases. Car prices have deterred some younger workers from making a car purchase. Proximity to public transportation, rentals, ridesharing and MaaS technology enables this group of consumers to meet their travel needs without owning a vehicle.
  • City centres implementation of taxes and city driving restrictions. With a growing concern regarding environmental issues some cities are reducing the accessibility of some city areas during specified times, and some even implementing a tax for entering city boundaries. All with the hope of trying to reduce dependence on vehicles to improve air quality and navigability for residents

The mix and quantity of vehicles on Europe’s roads will change, but the need for fleet transportation remains part of the commercial landscape, particularly for sales and distribution. Fortunately, mobility solutions provide several critical benefits to fleet managers.

How Mobility as a Service Helps Fleet Managers

The technology powering MaaS can make fleet operations more transparent for managers, especially those with travel fleets.

  • MaaS solutions, which include telematics, GPS and driver safety technology, provide a 360-degree view of journeys from initial scheduling through vehicle return and invoicing. This data enables fleet managers to analyse how different fleet vehicles and mobility solutions affect both financial and environmental objectives. The net result: better cost control and enhanced fleet efficiency.
  • The flexibility of MaaS for consumer travel can also apply to fleets. As commerce evolves and customer needs change, MaaS can be used to structure fleet transport systems to meet business requirements. For example, some routes or customers may require a van, while others are best served with a car. Routes into city centres could be served with electric vehicles. Fleet configuration can be tailored (and adjusted) as needed.

Leasing Companies as a Mobility Resource

The rapid-fire changes in MaaS technologies, regulations and solutions can be daunting to track and incorporate into a fleet program. Leasing companies like Avis Fleet Solutions have the bandwidth to monitor the mobility market and the experience to understand the implications of market changes.

Our team is available to answer immediate questions, or we can set up a time to review the best options for building mobility into your fleet program.

Contact us today and let us help you score big with your fleet in 2020!

Let us become part of the team that keeps your business moving

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+353 1 866 0520

sales@avisfleetsolutions.ie