4 Reasons to Morph from Fleet to Mobility Manager

4 Reasons to Morph from Fleet to Mobility Manager
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Experienced fleet managers understand that transportation is more than simply traveling from point A to B. It is about lifestyle choices and personal mobility, and the options can be bewildering. From self-driving vehicles to drone air taxi to ride-hailing, there are innumerable choices that are changing transportation at a maddening pace.

What does this rapid change transformation mean for fleet managers? What is the future of fleet management? The answer is mobility management.

Mobility management, or Mobility as a Service (MaaS), is a customer-centric, on-demand model of transportation. Mobility management is the science of influencing the travel mode choice of customers, and may include any combination of transport methods such as car or bike-sharing and car rentals/leases, and handles everything for the customer from travel planning to payment.

Instead of managing fleet vehicles to meet their customers’ travel needs, in the future, fleet managers will wear the hat of mobility managers and handle a broader range of travel and mobility options.

But what exactly is a mobility manager, and why should you graduate from your current role of a fleet manager to a new role?

There are plenty of reasons to morph from fleet to mobility manager, but first, some stats:

  • The global MaaS market is predicted to reach $1.75 trillion by 2028. (Source)
  • By 2030, 95% of passenger miles traveled in the United States will be served by on-demand Autonomous Electric Vehicles (A-EVs) owned by MaaS providers. (Source)
  • MaaS will help the average American family save more than $5,600 per year in transportation costs, which is equivalent to a salary raise of 10%. (Source)
  • MaaS will offer lower-cost transport alternatives to customers, which will be 4-10 times cheaper than buying a new car. (Source)
  • MaaS will bring a dramatic reduction of air pollution and greenhouse gases from the transport sector. (Source)

The transportation sector is in the middle of a technological revolution, where the need for smart mobility is changing how people travel. Autonomous or self-driving vehicles will be the new standard, while innovative concepts like Hyperloop are claiming to offer an effective alternative to rail travel, and air taxi trials are already happening. Meanwhile, field service businesses are witnessing a substantial increase in ride-hailing and car-sharing applications. This digital revolution is changing traditional fleet management services.

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How Is Mobility Impacting a Fleet Manager’s Job?

With most people choosing not to drive or own cars, in the future the popularity and need for ride-sharing and on-demand services will increase, and field service businesses will need to step up to meet this demand. As a result, fleet managers will find their roles evolving. They will be spending less time managing vehicle location or ensuring vehicle maintenance. As mobility managers, they will focus on a broader selection of sustainable transport options.

This role morphing means a greater understanding of the total cost of mobility. In addition to knowing fleet performance, or the operating cost of running the fleet, a mobility manager must be able to estimate the total costs of a trip an employee takes, from car rentals to food purchased while on the journey to airline tickets.

Why Morph from Fleet to Mobility Manager?

The conventional fleet manager role is being taken over by the mobility manager role. Even if the job title remains the same, the job description certainly won’t.

Here are just four of the many reasons that have fuelled the evolution from the fleet to the mobility manager.

Shift to TCM

The total cost of ownership (TCO) is being replaced by the total cost of mobility (TCM).

TCM encompasses the integration of technology and environmental initiatives, including connected cars, telematics, car-sharing, and alternative travel solutions with the help of data management. Some benefits of TCM include cost savings, a healthier bottom line, smarter environmental decisions, and improved customer experience.

Embrace Smarter Mobility

By adopting more extensive transport mode choices, field service businesses can make smarter travel decisions, from fuel management to routing decisions. Autonomous vehicles will make roads safer, as connected cars will provide significant insights into real-time vehicle performance, movement patterns, and driver behavior. Advanced technologies such as fleet management software will play an integral role in streamlining fleet operations and reducing fleet maintenance costs.

Reduce Greenhouse Emissions

Green fleets might be a powerful PR tool helping field service businesses leverage the “eco-friendly” brownie points, but soon they will become the transport norm.

Rising traffic congestion and pollution are prompting governments worldwide to implement strategies encouraging alternative forms of transport. Mobility managers leading the way in the adoption of electric vehicles will not only cut fleet operating costs but also lower their environmental impact.

Make Informed Business Decisions

Our reliance on technology will increase, and field service managers will have to leverage technology with advanced technology solutions like route optimization software to gather necessary data. A route optimizer with GPS tracking will help dispatchers or managers get real-time updates about a vehicle’s location, performance, and road conditions, as well as help plan accurate, well-optimized routes and make field service operations seamless. Such software will also help analyze the total cost of fleet ownership data for both individual vehicles and an entire fleet, and help mobility managers formulate recommendations to accomplish their company’s goals.

Conclusion

As cities become smarter and greener, mobility management will become mainstream and transform how people travel, signaling a shift in the transport industry. Fleet managers who embrace mobility will give end-users access to the most appropriate transport mode choice from an evolving array of travel options. Of course, the transformation from fleet manager to mobility manager is easier said than done. However, effective fleet management systems are entering the market and there is immense potential for cost savings and increased customer experiences.

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