Let us start by defining a vehicle fleet, which is the number of vehicles owned or operated by an organization. For this purpose the function of the vehicles is more important than the number of vehicles. An organization could have three fleet vehicles, while an individual with ten vehicles may not be a fleet. Going by this definition of the purpose of a vehicle, there are also vehicles which are owned by individuals but carry out fleet type of work.
For example a rider putting their motorbike on Bolt or a driver putting their vehicle on Uber become part of a fleet that carries out specific types of commercial work. It therefore follows that most commercial vehicles like vans, buses, trucks & trailers are fleets regardless of the ownership or number. Same case applies for bicycles or motorcycles being used for commercial delivery services.
To understand the impact of fleets in sustainable transport, we need to find out what proportion they are from the total vehicle population. Starting with the 11,769 new vehicles sold in Kenya in 2023, commercial vehicles comprised a whooping 86% compared to just 14% for passenger vehicles. It is also estimated that there are over 1 million motorcycles in the country, a large percentage of which are individual riders offering transport services in Saccos.
Why are fleets becoming so important in the shift to sustainable transport?
1. Productive use – compared to private vehicles that are parked about 95% of the time on average, fleet vehicles have much higher utilization and therefore better return on investment. Generally therefore private vehicles are liabilities because they remove money from your pocket, commercial vehicles are assets as they put money into your pocket.
2. Higher mileage – due to higher utilization, the same commercial vehicles also offer bigger fuel cost savings than private vehicles when they are electrified. EVs have about 75% lower operational cost than ICE vehicles, therefore the higher the mileage the more the saving and the shorter the breakeven period.
3. Safety – human error is said to be the root cause for 90% of all road accidents which last year caused 4,700 fatalities in Kenya and 1.3 million fatalities globally. EVs are adopting self-driving technology much faster than ICE vehicles, bringing hope that the fallibility of human error will be reduced to save more lives on the road.
4. Vehicle ownership – trends show millennials & Gen Z are less inclined to own big assets like houses & cars, preferring instead to enjoy certain experiences & lifestyles. They prefer mobility options like taxi apps, car hire & vehicle leasing to purchasing. Therefore the fleets that offer these mobility options will soon be the main direct vehicle purchasers, along with adoption of electrification.
FLEET FACTOR IN SUSTAINABLE TRANSPORT
