Rivian, the electric vehicle manufacturer, who is backed by Amazon, is aiming to raise between $5bn and $8bn through their IPO according to Reuters. Proceeds from their IPO look set to fuel expansion away from their plant in Illinois. If Rivian, dubbed the ‘Tesla Killer’ by some, hit their targets, it would make it the fourth largest offering in the past decade in the US. Read more here.
As the global pandemic eases and economic activity resumes, the fleet industry is experiencing rapid change. There is pressure to respond to business growth with fleet renewal programmes and updates, but managers also have a strategic imperative to consider. Over the next decade, fleets around the world will be reshaped by the switch to electrification, as diesel and petrol engines are phased out in a bid to reduce global pollution.
This issue features 10 ways EVs are changing fleet management forever, an insight into commercial vehicles, interviews with key global fleet executives and upcoming dates for your fleet calendar.
Welcome to the first edition of Fleet Future, our specialist insight series from Bynx looking at the latest developments in the industry.
As the fleet market goes through unprecedented change, this series of reports will consider some of the most pressing challenges facing fleet managers and their suppliers. The Coronavirus vaccine is helping to return the global
economy to full strength, but the business environment has changed significantly over the past year. Technology has been a vital lifeline for most businesses to maintain communication and enable employees to continue working from home while offices are closed. Now that restrictions are starting to ease, there is a unique opportunity to consider how these innovations can change the way we work in the long term.
Vehicle subscription models offer long-term monthly or weekly, all-inclusive rentals (often including insurance, maintenance and repairs). Vehicle subscription is a new kind of ‘car lease’, except it’s not a lease against a single vehicle, it’s a subscription – similar to a mobile phone service, with everything provided in one package for a single, monthly payment – and possibly for the use of multiple vehicles. The advantages for drivers are that they get all the benefits of car ownership (more accurate to say car “usership”) but without the hassle of having to find finance, insurance, breakdown cover and pay for servicing, repairs and a road fund licence, or be limited to one vehicle type – why not have a car for the working week, and a different vehicle for the weekend?
Fleet rightsizing is a proactive management strategy, by which fleet managers assemble a fleet that is suitable for purpose, whether delivery, passenger carrying, remote service engineers, a fleet of sandwich vans and so on, the fleet must be comprised of the right number of vehicles suitable for the purposes for which they are being used. The “size” of the fleet covers two distinct categories: (1) The size of each individual vehicle within the fleet i.e., small vans (such as the Citroen Berlingo with 1000kg load weight), large vans (like the Mercedes-Benz Sprinter with a 3500kg load weight), Luton vans, Minibuses, MPVs and so on. (2) The size of the fleet in terms of number of vehicles required to meet business demand.
As Business Contract Hire comes under pressure and (for some) loses its lustre, many companies are looking for ways to regain the best value from their contract hire relationships. One traditional acquisition method, more suited to the current economic climate, is gaining ground, and is once more in vogue. What is it and how does it work? Multi-bid fleet funding (also referred to as multi-supply fleet acquisition) is a way of preserving your relationship with the contract market and also helps in reducing fleet costs. How it works is that a prospective customer invites bids from multiple vehicle leasing companies, in a structured tendering exercise.
Returning to a new normal for vehicle fleet and mobility operators. We’ve brought together information, expert views and strategies that will help prepare your fleet, vehicle leasing and mobility business for a new future. The purpose is to help you navigate the uncertain journey that lies ahead as the world begins to ease pandemic lockdown. We’ve also included details about technology and fleet innovations that can support your transition as the demands and requirements of your business will undoubtedly change in the new world.
Contact us today to talk about your vehicle leasing and fleet management needs.