What is a mobility budget platform?

Employees want to organise their daily mobility more flexibly and efficiently. A mobility budget platform can support them in this endeavour. Companies can offer their employees the opportunity to choose from various mobility options and utilise individual benefits. Read this blog to find out how these innovative platforms are revolutionising employee mobility and bringing more flexibility to the world of work.

The need for a mobility budget platform

The days when company cars were the status symbol par excellence are not quite over yet, but they could soon be. This is mainly because there are more and more ideas on how people can organise their daily mobility without their own car. Providers such as Mobiko, Lofino and NAVIT rely on innovative mobility budget platforms that offer companies and employees a wide range of benefits. These platforms enable flexible use of mobility budgets, customised to individual needs and preferences.

Employers can give their employees the opportunity to choose between various options such as public transport tickets, car sharing or bike leasing. The platforms not only ensure greater flexibility in employee mobility, but also integrate sustainable aspects into the company's everyday life. Mobility budget platforms are rethinking the future of mobility - in terms of diversity, sustainability and individual freedom of choice. Ultimately, this innovation could be the key to greener cities.

What is the mobility budget?

The mobility budget is a monthly budget for company employees that allows them to flexibly and individually choose the best mode of transport for business, private or spontaneous journeys. Companies can use the mobility budget to incentivise employees to stay with their employer or to decide in favour of their employer as an applicant. The mobility budget is therefore suitable for employer branding and personnel marketing as well as for the sustainability strategy, as it can promote sustainable mobility.

The mobility budget gives employees the opportunity to use different modes of transport such as public transport, bicycles, car sharing or other sharing services instead of being restricted to a company car. This can help to reduce traffic and the impact on the environment and climate while improving employees' individual mobility.

In addition, the mobility budget can also be fiscally attractive and help companies to save costs. In practice, the mobility budget usually works via special platforms or apps on which employees can select and book their means of transport. The use of the budget is then billed and documented via these platforms.

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What is a mobility budget platform and how does it work?

A mobility budget platform is a digital solution that enables companies to offer their employees flexible mobility services. By integrating various transport providers and forms of mobility into a central app, employees gain access to a wide range of mobility services. Employers can set individual budgets and offer their employees a customised selection of benefits.

This means that employees can choose how they want to get to the office each day. Options include leased e-bikes, car sharing, a job bike, a job ticket, but also a petrol or charging card for their private car. So it's not primarily about doing without, but about creating more incentives to question your own mobility behaviour and making alternatives to the car as attractive as possible.

These are mobility services that employees can choose from on the platform:

  • Public transport tickets. The mobility budget is most frequently used to purchase public transport tickets. Employees can access tickets from all transport companies and the railway in Germany and worldwide.
  • 49-Euro-Ticket: Since 1 May 2023, the new Deutschlandticket can also be used with the mobility budget.
  • Bicycle leasing services. Employees can opt for an e-bike from their employer and conclude a bike leasing contract.
  • Micromobility services. Employees can also use the mobility budget for the micro-mobility providers available in their city, including e-scooter sharing, e-moped sharing and bike sharing.
  • Car sharing services. Instead of company cars, employees can make flexible use of car sharing services.
  • Ridehailing services. Employees can call a taxi or a ride-hailing service.
  • Fuelling and charging. Mobile and contactless payment with a hybrid card at several thousand petrol stations and charging points.

Advantages for employees when using a mobility budget platform

An innovative concept such as a mobility budget platform can offer numerous advantages for employees. The flexibility to use different modes of transport as required significantly improves individual mobility. Thanks to apps such as NAVIT, Mobiko or Lofino, employees can easily and conveniently access the mobility budget and organise their journeys.

Dispensing with a company car in favour of a mobile budget not only leads to more sustainable employee mobility, but also allows employees to decide for themselves how they want to get to work or travel privately. They also benefit from tax advantages and a wider range of mobility service providers. These new options offer employees greater flexibility and autonomy with regard to their commute and therefore contribute to a more satisfying work-life balance overall.

Surveys also show that these benefits are becoming increasingly interesting for employees in Germany. As a survey conducted by market research institute Kantar on behalf of mobility provider Free Now shows, although around a third of employees in Germany have the option of a company car, more than one in two say they would like to swap this for mobility budgets.

Employees see the advantages of saving costs (63 per cent), spending less time looking for a parking space (65 per cent) and being able to flexibly combine several transport options (67 per cent).

A survey conducted by management consultants McKinsey also found that 70 per cent of employees would be willing to use e-scooters, e-mopeds or e-bikes to get to work and that the traditional company car is outdated as a mobility option in many large cities.

How can companies benefit from a mobility budget platform?

Companies can particularly benefit from implementing a mobility budget platform. Through partnerships with providers such as NAVIT, these platforms enable employers to offer their employees flexibility and variety in their choice of transport. Instead of being limited to traditional company cars, employees can now use individual mobility budgets to finance public transport tickets, car-sharing services or e-bikes, for example.

This measure not only increases employee satisfaction, but also contributes to sustainability and efficiency within the company. By providing their employees with modern mobility solutions, companies position themselves as progressive employers and set an example for a sustainable corporate culture.

The platform dashboard enables benefits managers to easily manage their employees and provides an overview of individual budgets. Integrated interfaces to HR, tax and payroll systems make employee management and monthly payroll accounting easier.

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Integration of sustainability into the mobility budget platforms

Sustainability reports will become mandatory for many companies from the 2024 financial year. The tightening of the ‘Corporate Sustainability Reporting Directive (CSRD)’ by the European Union stipulates that from 2025, EU-listed companies will have to prepare a sustainability report on their own greenhouse gas emissions balance for the previous financial year. This means that 50,000 companies in the EU and 15,000 in Germany will be obliged to produce a sustainability report in future.

If you want to excel here, you also need a new and modern mobility concept for employees. Mobility budget platforms are therefore becoming increasingly important. Employees benefit from flexible mobility apps such as NAVIT, which enable sustainable mobility. By promoting sustainable mobility, employers can not only improve their carbon footprint, but also offer attractive benefits for employees. The variety of mobility options available on the platform creates room for customised solutions that meet both corporate and environmental goals.

Conclusion: A new approach to designing modern, sustainable employee mobility

In a modern working world characterised by flexibility and sustainability, mobility budget platforms are proving to be a pioneering approach. Providers such as NAVIT give employees the opportunity to choose from a wide range of mobility options - be it public transport tickets, car-sharing services or bike leasing.

These platforms not only offer a diverse selection, but also transparent billing via a central app. For their part, employers benefit from reduced administrative work and attractive benefits for their employees. The integration of sustainability aspects into mobility budgets also helps to reduce CO2 emissions and promotes environmentally friendly alternatives to company cars. Mobility budget platforms thus create a win-win situation for companies and employees by redefining modern employee mobility and providing forward-looking solutions.

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Stefan Wendering
Stefan is a freelance author and editor at NAVIT. Previously, he worked for startups and in the mobility sphere. He is an expert in urban and sustainable mobility, employee benefits, and New Work. In addition to creating blog content, he also produces marketing materials, taglines, and website content, as well as case studies.
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