Usership vs. Ownership for Business

Usership vs. Ownership for Business

By RAM Tracking on 13 Apr 2018

Usership options, developed by manufacturers and fleet-vehicle distributors, provide similar services that are aligned with how an individual may use a shared-ride service.  The usership option may allow for a business to utilise vehicles over the course of a specific period, but face some limitations as compared to ownership of vehicles by a business. Some of the limitations that will often be demonstrated on a usership option are regarding distance travelled, limiting within a set term the amount of km that can be added to a vehicle.  Additionally, a limitation of usership is the potential lack of customisation provided for each vehicle’s capabilities to meet the specific needs of the fleet or business.

However, on the opposite end of the spectrum, usership provides the benefit to businesses by having a smaller impact to capital or cash flows, as the purchase and full ownership of vehicles to the fleet are not pulling assets away from the bottom line.  Usership in this instance, provides the ability to utilise assets or cash flows in other strategic initiatives for your business while still maintaining the needs of the fleet with consistent travel between locations.  Additionally, several usership options provide maintenance relationships to help keep fleet vehicles maintained and active, rather than having to rely on additional partnerships or contracts to keep the business fleet moving forward. 

Ownership of fleet vehicles for a business, although considered an initially higher cost, may allow for greater flexibility in the long term to help fulfil the organisation’s strategic goals and vision. Having unique customisation available to a business fleet, such as coordinating specialised equipment or brand imaging on the vehicles, can add substantial value and efficiency for many businesses that need to go beyond the generic models offered by some usership choices. Additionally, having the ownership capability of a business vehicle can add to the diversification of an asset portfolio of the business, providing leverage points to develop future relationships or priorities that may, or may not, be anticipated by the business over a reasonable period. 

Whether a business decides to maintain ownership options of a fleet, or look toward usership options on a given fleet, the ability to add value while reducing overall costs can be of substantial importance.  When looking at the overall cost of ownership versus usership, as a fleet manager or business owner, it is important to consider the costs that may be involved. This will help to provide the best solution and decision for the business at hand, and when the decision is made that best fits your organisation’s strategic initiative, be sure to add fleet tracking technology to maximise the earning potential from day one!