Skip to main content

5 fast facts about Total Cost of Mobility

Company fleet managers are always seeking ways to make driving more efficient, make better choices regarding their fleet vehicles and costs in order to make sure their fleet is prepared for the challenges ahead. A key component of any fleet optimisation strategy is analysing Total Cost of Mobility (TCM), which provides data on the real cost of each user and can suggest a roadmap for the future. TCM is already shaping fleets today. Read our five fast facts about TCM to find out more.

From car to user

In contrast with the more familiar Total Cost of Ownership (TCO), which looks at costs of cars travelling from A to B, TCM considers the bigger mobility picture. Specifically, it looks at the users of the cars and includes topics such as what type of vehicle people choose, rental cars, taxis, carsharing or public transportation. Plus, it takes peripheral expenditures into account, like services used by the drivers, parking, and travel management. TCM provides a lot more than just costs: It gives key data on fleet usage.

The deeper view

TCM gives fleet managers and the company greater insights into the cost per company, rather than the cost per vehicle. They can see how the fleet is being used in its entirety, and so it lets them consider all the possibilities for optimisation. The company may want to add or expand e-mobility solutions, for example, or carsharing, to cover certain areas. Car and travel policies may also need adjusting to make more efficient use of the fleet and make use of alternative means of transportation more attractive to employees.

Fine-tuning usage

Company drivers tend to take the first car available. By looking at certain metrics like routes driven and reason for trips, a fleet can make far better use of its vehicles and, in addition, lower costs and carbon footprint. Trips in urban areas, where cars consume up to 30% more energy, can be made using an electric car, carsharing, or by public transportation.

Prepare for the future

Introducing electric cars is becoming increasingly popular with fleets. Companies should make use of the Electrification Potential Analysis (EPA) to find out what is the best path to electrification. Analysis of the current fleet vehicles provides data on consumption and emissions. The EPA can then recommend the best way of introducing electric vehicles (EV) or electric light commercial vehicles (eLCV ) as a way to achieve your budgetary and environmental goals. The data generated can also be part of a company’s TCM.

Shifting into TCM mode

Analysis of a company's TCM is a vital way to save costs and modernise a fleet. It is still not the preferred metric today, because many companies tend to revert to TCO by default. A good way to introduce TCM is to raise awareness of the many solutions available when taking a holistic view of mobility. Companies can look at user profiles, too, and identify areas that need improvement. Finally, it is important to engage in an open dialogue about the ways to implement TCM and its many benefits and to take action, for instance, by drawing up a mobility plan.

Have these five TCM facts given you food for thought? Is TCM a viable way to get a grip on costs? Do you have any additional information that would be helpful? We welcome your views in our comments section.