Public
14 Oct 2020
Our Proposal
Upcoming political and social issues affect individual mobility: urbanisation, GenY and the birth of the shared/streaming economy where by no one owns anything anymore. With increased urbanization comes increasing congestion on our roads which costs the economy billions of $s every year. With an increasing urban population and increasing numbers of cars on the roads comes greater pollution and the need for better managing the effect on the carbon footprint with dangerous NOX emissions linked to Cancer. Moreover with greater urbanization comes the need also for parking, which carries very high prices inner city.
Together with these macro level trends, we see more closely linked to the automotive and leasing sector many new laws being introduced creating greater complexity. The introduction in 2018 following the US emissions scandal; WLTP (worldwide harmonized light vehicles test procedure), IFRS 16 reporting, governments banning sale of traditional combustion engines and moreover, the imminent diesel bans being introduced in major European cities, move to PHEVs, EVs - however this is only helpful for people living and staying exclusively in the cities 7 days a week/365 days a year. And this also loops back to the challenge with the urbanization, as for many living in apartment blocks, the charging infrastructure becomes a real issue!
That’s why tomorrows mobility requires new services. Namely a need for an alternative to the traditional company car, and more broadly for both consumer and corporate, greater flexibility is required versus a 3-4 year lease package. The ability to interchange cars according to your personal circumstances and preferences i.e. financial, occupational, lifestyle and of course your living status.
With MobiFlex by Sixt – set a budget aligned to the different TCO levels of a company car, excluding fuel, according to the grading structure employed today and Sixt allocates an acris code equivalent to each level i.e. Grade 1 = economy, Grade 2 = premium etc. In each grade there are a group of cars available to select from, which is linked to a mobility budget. Drivers can interchange cars according to their preferences i.e. if I am entitled to a VW Passat at € 700 per month and cars don’t interest me so much, I take a VW Golf at € 500 and at the end of the year, there is a saving of € 2,400, which the company can then steer how this is allocated.
Recommendation would be an 80/20 split in favour of employee and then they can either have this paid through salary or converted to a private mobility budget to spend on airport transfers when flying on vacation and/or a rent a car when they arrive. This is normally paid from net pay so the value in most countries with the tax systems is worth double.
Another alternative is for the VW Passat driver that takes two weeks holiday twice a year. When arriving at the airport, they off-hire the car with Sixt and leave the keys behind and when returning pick up another car in the same grade. These two weeks times two = one month saving, no parking costs during their vacation and finally one month with no BIK (varies by country) to declare to the tax man.
Later this year Sixt will also enable users to integrate 3rd party suppliers into the mobility budget so yopu can create a truly integrated inter modal mobility solution for those that its convenient to part/all utilize public transport as part of their mobility requirements. Practically, just like Concur, when you incur a cost charged to your company credit card for maybe Uber, DB etc, you simply scan the receipt, upload it to the App and the budget will be adjusted accordingly. The customer can then decide to receive monthly or annual payroll and taxation reporting to inform finance and the local tax authorities of the usage during the tax year.
Most of all a flexible alternative to the company car. Its not a one size fits all but it fits certain user groups: Regular travelers, either domestic and/or international, managers not using the car all the time, especially those living in urban areas where they can also utilize public transport.
Countries which also incentivize usage of PHEVs and EVs can be helpful as users that may benefit from a PHEV/EV Monday to Friday but then need a different powertrain and/or larger car for driving to the country, vacation to the mountains etc. Thus Maas + EV = range extender.
And if you signed up for a new four year lease and then WLTP increases dramatically your CO2 emissions or your local city bans diesels cars, then with Sixt, you simply return the car, no tie in and take a different car model/class or powertrain.
And with the addition of an integrated mobility solution that can incorporate public transport for those living downtown that prefer that mode, it really ticks all the boxes namely; reduces congestion, typically results in downsizing which both mean lower carbon footprint, reduces cost as company typically retains 20% of any underspend, drivers love it, comps and bens are very happy as this could also be offered out to the entire employee base. It’s a win win all around.
Nothing else like this exists on the market. None of the established lessors can offer such a scheme as they all rely on long term commitments for leases. Sixt runs more than 50% of its fleet as premium, so imagine arriving at the airport and being given a mainstream manufacturer car. We can guarantee this will never happen with Sixt. According to our brand core we want to evoke “excitement” in anyone who rents with us.
And even for travellers which don’t want to go for a rental car we offer a smart solution called Sixt myDriver. Under certain circumstances, i.e. when returning from a business trip and heading for the city, the employees can choose the affordable chauffeur service for the transfer. Sixt myDriver is available in more than 60 countries and more than 150 cities worldwide.
The joint development of DriveNow impressively demonstrates Sixt’s innovation prowess of establishing new ventures speedily on the market, upscale them and thereby create significant corporate value. But soon we will expand our position as leading mobility service provider out of our own strength by integrating all mobility services coherently under one roof on the proprietary Sixt mobility IT platform and launch a brand-new app. This enables reducing the dependency of third party solutions to fulfill the total mobility requirements. Sixt is the only car rental company that can rent for one minutes up to several years.
We like to work together with partners. To that end, we would like to start with a pilot scheme with Nokia, thereafter how about creating a special group of peers working together to develop the program resulting in a volume based consortia of companies to leverage best practices and more attractive pricing.