Why your company should adopt ride hailing services

Ride hailing services are apps that connect passengers and local Taxi drivers online. In most cases they are a comfortable method for door-to-door transport. The service through a smartphone app is hosted and regulated by a transportation network company (TNC) such as Hava

Today we decided to do an analysis on Using Company cars Vs Ride hailing services for your firm or business.


Risk & liability

With company owned vehicles, your company is typically liable for accidents 24/7. Considering that approximately 35% of crashes occur on Saturdays, Sundays and during the night, your company assumes a substantial amount of risk during non-business hours. In the instance of a careless driver who is not worried since the cost of repair in the case of an accident lies on the company an organization faces a huge risk.

In the scenario that a company instead, a company adopts ride hailing services, the vehicle belongs to the driver and hence with the thought of repair costs falling on him he will be more careful while driving.

Large, upfront capital expense

Purchasing an entire fleet of cars requires a large amount of capital. For small businesses, this presents an especially big challenge, since it can mean choosing between funding cars or ride hailing services.

To reduce the upfront expense, you can choose a ride hailing service provider whereby the capital expence will be reduced since you do not need to buy the vehicles yet there will be multiple at your disposal when you require them.



Employees don’t get to choose the car they drive daily

While this can be a benefit for companies (i.e. control of corporate image), it also means inflexibility for employees.

Employees with families may want a car with a large capacity or specific safety features for their kids. Employees with medical conditions, like back pain, may want a car that’s more comfortable to drive around in all day. These employees will either need an exception to use a specific vehicle and inconvenience the rest who would need to use the same type of vehicle, or they’ll be stuck with a car that doesn’t quite meet their needs.

In such an instance when employees require to use a specific type of car, Ride hailing service providers come to aid with the option of different vehicle categories according to size and capacity i.e. Hava XL which has the highest capacity in our fleet for large groups ,large families and comfort. Classic for slightly fewer people and comfort. Swift for one or two people to easily get around. NB: Terms and conditions apply according to Covid-19 guidlines

Personal use tracking

Many companies allow their employees to drive corporate vehicles outside of work, without insight into how often employees are using the vehicles for business vs. personal reasons.

This lack of insight exposes organizations to audit risk and increased costs. Companies are required to keep track of personal use of fleet vehicles by employees. Meanwhile, unless your company has a process in place to accurately charge employees for their personal use, your organization could be losing money each month in foregone personal use chargebacks.

When it comes to using a ride hailing service the company can easily keep track of an employees use of this company resource since billing receipts include destination and time.

Maintenance and Upgrading

It is easy to think of company cars as a one-off expense, but the reality is that cars – particularly company cars that are driven frequently throughout the year – need to be repaired, serviced and maintained. Over time, the cost of insuring and maintaining a fleet of company cars can be quite significant.

It’s also important to keep in mind that company cars eventually need to be replaced – an additional expense for your business.

If a company decides to use ride hailing, cost such as maintenance, servicing, insurance and upgrading become the drivers responsibility and the employees can select the kind or make of vehicle with Hava offering free cancelation for organizations that are corporate members it would be wise to take advantage of such an offer.


Talk to us

Download the Hava App on Play Store: https://hava.bz/gpr1 or on App Store: https://hava.bz/asr1.

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