Why Grey Fleets can be a Liability Nightmare (and how to fix it)
Grey Fleet Safety: Employees using their own cars is a massive risk
Everyday, thousands of small business owners risk the safety of their employees and open themselves up to huge risk - and most don’t even realise it.
I’m talking about grey fleets. They can be a safety and liability disaster waiting to happen, and many small business owners are operating one with no idea it exists.
What is a grey fleet?
Simply, a grey fleet refers to trips taken for work in an employee's own vehicle. Even without a formal fleet, most businesses need staff to get around for a sales call or a job, and they’ll often use their own cars, vans, or motorbikes. That’s your businesses grey fleet.
The short list of problems with a grey fleet include:
Liability: Employers have a duty of care for employees using a vehicle for work, regardless of ownership.
Safety: Vehicles in grey fleets tend to be older, with lower ANCAP ratings, exposing employees to more dangerous situations.
Control: Most companies have no control over the maintenance or safety features of their employees' vehicles.
Environmental impact: Older vehicles means less efficient vehicles, increasing the businesses carbon footprint.
Insurance: Do you know or control the insurance of your employee’s vehicles? If you don’t, that could be a problem for you.
Cost: Using the ATO rate of $0.88 per kilometre, you’re looking at $88 for a 100km trip. With no real ability to audit actual distances, that’s going to add up quickly.
How big of an issue are grey fleets in Australia?
Consider that up to 25% of all trips taken in Australia are for work, and around 5 million Australians work for small businesses, most of which won’t have a formal vehicle fleet. That likely means hundreds of thousands of workers are using their own vehicles for work trips.
The big issue is employers are responsible for the safety of any vehicle used for work. That holds whether it’s owned by the employee or the company, reimbursed or not, or whether the company has any control over the make, model, safety, or roadworthiness of the vehicle.
If an employee is using a vehicle for work, then the company is on the hook for their safety.
This is why most big businesses spin up their own fleet if they need one. At scale the cost of buying and maintaining cars and managing the fleet is worth removing the risk. But small businesses don’t have the scale that makes that financially viable.
Thankfully, there are solutions that are cost-effective, eco-friendly, and that protect both your business and its employees.
Solving grey fleet safety risks with GoGet car share
GoGet gives you and your staff access to a massive network of cars and vans across Australia, bookable from as little as an hour, for as long as you need them. The GoGet network has already replaced grey fleets for thousands of Australian businesses that rely on it as a cost-effective and flexible fleet replacement.
Just some of the key benefits of using GoGet to replace a company-owned or grey fleet include:
Workplace safety: GoGet vehicles are all kept in excellent mechanical condition by the dedicated fleet team and have access to the latest safety features. Plus, all large cars and vans have 4 or 5 star ANCAP ratings.
Cost savings: With no signup or ongoing costs, your company only pays for the hours and kilometres driven. That means no extra costs for fuel, rego, insurance, maintenance, long-term parking, or the cost of managing a fleet.
Flexibility: Your fleet needs will change over time, and GoGet lets you scale your vehicle costs perfectly, with no down time or inefficiency.
Reduced admin: GoGet handles maintenance, insurance, and compliance, reducing your workload. This includes providing car access to staff, fuel cards, and managing logbooks.
Environmental benefits: GoGet’s fleet of new or near-new cars are more efficient, and include a growing number of EVs and hybrid vehicles. If your business has sustainability goals, GoGet can help you meet them.
Ease of use: Because employees can book a GoGet near their home or work with the app, you can do away with logistics planning around which cars are where and when. The app also allows for easy management of bookings and driver accounts.
GoGet and safety
If grey fleet vehicle safety is the biggest issue with employees using their cars for work, then GoGet is one of the most robust solutions available.
GoGet cars are all bought new, regularly maintained, and eventually rotated out of the fleet. That means your staff will always be driving a safe, well maintained vehicle.
You’ll also be sure that your employees are driving a car that meets modern safety standards, rather than a 20 year old Ford Falcon with a bum front ball joint and the crumple zone of a concrete slab.
GoGet works closely with ANCAP, Australia’s independent voice on vehicle safety, to optimise the safety of cars in the GoGet and to ensure businesses have easy access to vehicles with 5-star ANCAP ratings.
ANCAP & GoGet - Using 5 star car-share can be a safer option
GoGet fleet replacement in action
GoGet is already in use with businesses across Australia. This includes thousands of small operations, everything from sole traders to teams of dozens or more.
But it also includes some much larger organisations, including LaTrobe University, and the NSW Department of Primary Industries.
For smaller businesses, GoGet means the ability to scale their operations, and use a range of different vehicle types without having to make expensive capital outlays. For larger organisations, cutting formal fleet sizes while minimising the liability risks of grey fleet usage is a key focus.
Other grey fleet alternatives
There are a few other viable alternatives to an unchecked grey fleet, but they all come with major disadvantages.
Starting a fleet: As mentioned this can get really expensive fast, and is only really viable for larger companies.
Short-term leasing: If you need a car for a specific period of time, this can be an option. It’s not especially flexible though. Plus, business carshare has all the upsides with none of the downsides.
Novated lease (salary packaging): If you’re feeling generous, you might consider including a car in your salary package. This would allow you to ensure staff cars are new and well maintained, but you’ll also be on the hook for the associated fringe benefits tax, as well as the administrative burden.
Public transport and taxis: We love a good train ride, but relying on buses, trains, and taxi services just isn’t viable for a lot of businesses on tight deadlines.
Don’t take the risk on grey fleet - GoGet instead
Grey fleets are a hidden risk for too many small businesses, especially with better options out there. GoGet is a flexible, safe, and cost-effective grey fleet alternative. Along with the benefits to safety, there’s virtually no financial downside with no start-up or ongoing fees and no lock-in contract.
Ready to make business travel safer and simpler? Check out the hourly rates for business plans and learn more about how GoGet can transform the way you move.
