10
Oct
2016

Company Car vs. Ridesharing Services

Transportation is an important issue that should be discussed between the employees and their employers. Many workers in Metro Manila are dealing with heavy traffic going to and from their workplaces. It is only natural for the companies to take notice of their predicament and help lessen the stress their workforces are dealing with day to day.

Some corporations have resulted into providing a company car for their employees to utilize while there are some who have forged a deal with ridesharing services like GrabCar and Uber to ensure the workers’ safety and mode of transportation.

It is given that they may have similarities and may even use the same set of cars and ultimately the same parts such as a universal muffler; but this article aims to compare and contrast them from one another as well as discuss both of their pros and their cons.

Company Car

company-cars

Pros:

  • Company cars can both benefit employers and employees. The workers will be able to have access to a vehicle on their own if the company they are working for provide them a fringe benefit at a lesser cost.
  • There are tax systems around the globe that may encourage car provisions over the remuneration of money.
  • Firms may require their employees to have access to an acceptable vehicle at any time of the day and providing a company car will solve this issue right there and then.

Cons:

  • Company cars or vehicles may lead to economic distortion in consumer industry as buyers are being encouraged to consume more vehicle-related services when they do not need to. In the long run, this could result into a significant tax loss.
  • There are cases when employers are ending up choosing more and bigger vehicles when provided with a company car. This will then cause them to emit a larger amount of fuel costs and emissions. Studies show that other drivers have resulted into taking a longer route to cover the fuel’s marginal cost.
  • There have been instances when providing company cars to employees have ended with the company facing scrutiny as well as budget cuts and deficit.

Ridesharing Services

ridesharing

Pros:

  • It is relatively easy to use ridesharing services when you are very particular with using your smartphone. You can simply download their respective app on your mobile device and connect to the internet to hail a ride.
  • You can sit back and relax while letting the driver take you to and from your workplace.
  • You can choose which vehicle you want to travel on. There are some places where you can even choose to ride on a luxury car.
  • The driver’s information will be shared with you on your smartphone to make you feel safe while on your commute.
  • You are likely lessening your carbon footing to help save the environment when you choose to go on a ridesharing service rather than driving your own car to your office.

Cons:

  • Ridesharing services have presented unfair competition to the traditional cab and taxi companies because Uber and GrabCar drivers are not being asked to pay taxes such as licensing fees.
  • Cab drivers from these services often lack proper training and are most of the time unprofessional drivers.
  • It does not have the strict supervision traditional cab drivers have and in some instances this has resulted into dangerous incidents involving their passengers.

In the end, it will all depend on the conversation you had with your employers (or employees) on which subsidy should you be relying on and using on a daily basis.

About the author:

danaoJeric is a freelance writer that features food, lifestyle, travel, DIY subjects, and nature. He is an adventurer, taking on the world and everything it has to offer, may it be the good and the bad. He also has a weird love for reggae and sharks. See: Reggae Shark

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