Fleets reach strategic crossroads

The coronavirus crisis has pushed fleets to a crossroads in strategy, with most deciding between a stick or twist approach when it comes to electrification.

According to FleetCheck, fleets are falling into two camps, those who want to push forward with plans such as electrification and adoption of mobility solutions, and those choosing to make the most of existing resources.

Peter Golding, managing director, said: “With the coronavirus crisis now in its sixth month, we are starting to see some strong indications of how fleets are planning to approach the next few months as well as into 2021 and beyond.

“It’s an interesting moment because the current situation, while obviously dreadful in most respects, has created time and space for fleets to think and to consider ideas that might once might have been considered too radical to be practical.

“There appears to be a split on whether to advance or consolidate. Some fleets are very much doubling down on their strategies for the future, especially around electrification, with some businesses looking to accelerate adoption, and push forward in areas such as EV-based salary sacrifice and handling increased amounts of grey fleet activity.

“The other main approach appears to be to work to contain costs and maximise efficiency as much as possible through sweating existing assets and refining current processes.

“Of course, the difference between these two contrasting lines of thought is very often cash. Businesses that want to undertake radical change need to be free to make investments to see them through while those that are facing tougher times are under pressure to make the most of what they already have.”