How Outsourcing Employee Transport Has Impacted The Corporate Landscape


There are two kinds of employee transportation. The first is for personnel commuting to and from work, while the second is for client, conference, and business trips. Over the previous decade, firms began to offer free or subsidized employee transportation as one of their employee benefits.

What began as an employee benefit has become a requirement in many firms. We shall follow the evolution and transformation of the employee transportation system through several years in this blog. Also, a look into how the transportation management system is changing the ways by which employees travel.

The Early Days of Employee Transportation

Companies began supplying transportation to persuade candidates to choose the company and avoid turnover. However, employers quickly realized that there were many more advantages to providing employee transportation. 

Furthermore, global corporations or organizations serving North American or European clients required odd-hour shifts but public transportation was unavailable during those shifts. Corporations must then provide workers with reliable transportation. Employee transportation became one of the organization’s horizontals as the demand and benefits for the services increased.

The transportation providers began to expand their fleet sizes to meet the increasing demand. This expansion has resulted in the development of fleet management software systems that aid in the operation and management of large fleets. At the same time, the increased reliance on staff mobility presented numerous issues to the organization.

Challenges that Organizations Face in Transport Management

One of the biggest challenges is cost. The cost of corporate fleet management is very high. Some companies manage costs by charging employees subsidized rates to use the transportation system. Even then, the expenses are high.

Today, many organizations in India try to reduce costs by outsourcing employee transportation services to a third-party service provider. But outsourcing also comes with many challenges, for instance, employee safety. Another challenge is to ensure that the safety and government regulations are met.

The major challenge is fleet management, whether the transportation is being managed in-house or outsourced. Fleet managers have many responsibilities, including creating lists of employees, planning routes, and scheduling pick-ups and drop-offs.

 The average workforce of a company has nearly 1,000 people, more or less a few hundred. Not all employees work the same shifts. In addition, they travel from many different places in the city. The transport managers must consider parameters such as number of employees, shift details, location, best route and cost factor before arranging logistics services. Manually managing such a large number can be a big challenge for anyone.

Moreover, as fleet sizes and challenges began to increase, businesses turned to software applications to find solutions. This has led to the development of employee transportation and fleet management software platforms.

Build a Database

The software application handles one of the most time-consuming chores for transportation managers: creating a database. The tool makes it simple to enter enormous amounts of data obtained in spreadsheets or other forms.

When the application’s database is updated, it automatically classifies and ranks employees depending on location and shift. It simplifies the planning of routes and pickup/drop points for transportation management.

Seamless Fleet Management

As previously said, manually planning and organizing transportation for numerous employees is challenging. Once the details are entered, the fleet management system automates the entire procedure. The software also allows the fleet manager to amend the trip manifest based on current scenarios and traffic conditions.

Ensure Secure Employee Transportation Services

The fleet management solution also solves one of the most significant difficulties of providing employee transportation: employee security. The application monitors the data from the GPS trackers mounted in the vehicles and ensures secure employee transportation services. As a result, you receive real-time information on your location and journey status.

Furthermore, the app allows you to create a geo-fence depending on the trip data and location. As the vehicle crosses this virtual boundary, the administrator and other relevant personnel will receive timely notifications. The competent authorities can then contact the staff to see if anything unusual is going on or if there is an emergency.


The employee transportation management system has progressed from being disorganized to becoming automated. The software application will be updated and upgraded as needs and demands change. This accessibility of seamless employee transportation has benefitted the corporation’s business which operates in odd hours. However, this method has helped fleet managers tackle many challenges while managing employee transportation systems.

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