THE Covid-19 pandemic could lead to a surge in company cars and accelerate the move towards electric vehicles.

These are among the findings in a new report published by Alphabet (GB)  examining how the pandemic has accelerated changes to travel and transport, altering consumer and business travel habits in UK cities.

With mass migration to working from home, in March, road traffic travel dropped to levels not seen since 1955and journeys on the London Underground fell by 95%. Today, only 6% of those travelling to work by train feel comfortable, dropping to just 4% for tube users.

Use of more active modes of transport like cycling and walking have more than doubled to 20% and 10% respectively. A quarter of 18-44-year olds expect to retain the new modes of travel they used during lockdown, and only one in three expects a return to normal travel patterns.

Private vehicle preference

As such, the company car may also see a surge in popularity. Alphabet’s research showed 37% of consumers would now consider using a company car following the pandemic, to enable them to travel safely, whereas prior to lockdown many employees favoured a cash benefit. These changes are likely to remain for some time due to ongoing safety concerns and fleet managers will need to have a flexible fleet offering to handle these changing preferences when building their future mobility plans.

Electric Drive

The improvements in city air quality during lockdown appear to have had an impact on public perception and sales of electric vehicles (EV). Adoption of EVs continued to accelerate during the pandemic, taking a record market share of new vehicle registrations in August. Nearly a quarter (24%) of consumers said an EV or plug-in hybrid vehicle (PHEV) would be their next choice and 40% would strongly consider one. This is a substantial increase from the 19% of people considering EVs at the end of 2019[3].

People also want to see businesses supporting the shift to EVs and are prepared to pay for it. Over half (55%) of respondents felt delivery vans should be electric, while one in three said they would be happy to pay extra for an electric delivery vehicle. Fleets that make the shift early have the opportunity to benefit significantly in terms of brand perception and preference.

Nick Brownrigg, Chief Executive Officer, Alphabet (GB) said: “The pandemic has had a huge impact on people and businesses, fundamentally changing how we move around and use our cities. While we can’t be sure of the long-term impact, it’s clear a lot of these changes are here to stay, and for fleet managers flexibility becomes ever more important.

“We are working closely with all our customers to help them navigate the new world. People are adopting new habits and behaviours so it’s key that digitalisation and sustainability are central to any fleet strategy. Now is the time for all of us to invest and meet the changing needs of employees and customers, so we can ensure everyone feels safe and confident when travelling to work.”