Move over limo and keep idling taxicab, because more people are hopping into ridesharing vehicles when they’re on the job. The rising popularity of sharing economy services in the B2B market is largely due to the fact that people are using them in their personal lives. If your colleagues are comfortable connecting with an Uber driver to provide transportation to and from a party or sporting event—and the experience is easy and convenient—they’re going to want to call on Uber when they need a ride to a client’s office or the airport.
Travel managers have to ask the question: How will ridesharing services impact our T&E policy and expense management process? To help you answer the question for your organization, we’d like to share some insight to help guide your policies and procedures down the increasingly popular ridesharing path. Consider what B2B sharing services can bring to your travel program:
1. The Value Prop Trifecta
It’s hard to argue that by putting services in the hands of the people that use them, the sharing economy delivers hard-to-beat value. More companies are taking advantage of ridesharing services because they save time, money and reduce hassle.
- Time-savings – Why wait in a long taxi line when an Uber driver can pull up at the curb in less than 5 minutes? Uber can give companies nearly $447 worth of employee time back, factoring in not only the time waiting for taxis and limos, but also the time saved from filling out expense forms.
- Cost-Savings – Receipts for limos and rental cars can really add up. Businesses find that Uber is 40% less expensive than taxi services, and employers can save about $900 per employee per year by utilizing their service.
- Convenience – It’s simple to transact with ridesharing service providers and drivers, as B2B users have access to advanced or on-demand booking. And payments can be handled automatically using a corporate credit card through the service’s app or via the rider’s personal credit card. Plus, if traveling in an unfamiliar city, it’s easier to get transported by a local than relying on public transportation.
2. Relevance and Momentum
Business travelers are using these services outside of work and their companies are starting to take note. As of September 2015, over 50,000 businesses were enrolled in the Uber for Business program. But let’s take a deeper dive into the research showing growth potential:
- Ridesharing is on the rise. The Global Business Travel Association (GBTA) Foundation’s 2015 Ground Transportation Study shows the most commonly used methods of ground transportation for business trips Rental cars (36%), taxis (24%), chauffeured transportation (13%), and ridesharing companies (11%).
- Ridesharing is preferred. A full quarter (25%) of business travelers participating in an ExpertFlyer.com survey said they now use rideshare services, such as Uber or Lyft, rather than a traditional taxi (17%).
3. Easy Implementation, Seamless Integrations
While companies iron out the details related to sharing economy services—like addressing duty of care issues and formally working new vendors into their T&E policies—getting up and running (make that driving) is generally simple. Cloud-based administration means employees can simply download an app and travel managers don’t have to worry about investing in any additional software programs. Plus, service providers can help ensure business accounts are set up with company-specific controls and sync up with their travel management software solutions.
Your employees have the option to start using Uber for business purposes today and they can submit their digital receipts easily into Nexonia Expenses.
We also recommend that you read How Business Travelers Can Live Like a Local for a list of helpful apps to use while on the road.