Embracing Change: Leveraging Nudges to Transition to a Shared Fleet Model Part One

With the environmental and economic burden of 1:1 vehicle use becoming increasingly heavy, more companies are moving towards shared fleet models. This transition promises significant cost savings and environmental benefits, but it can require a pretty massive cultural shift within organisations.  

Transitioning to a shared fleet model means changing deeply rooted corporate norms and personal habits—a challenge that can be effectively managed through strategic behavioural nudges.

The challenge of change

For many employees, a company car is not just a convenience but a symbol of status and success. The prospect of relinquishing a personally-assigned vehicle for a communal pool can feel like a demotion, triggering resistance. This resistance is compounded by the sacrifice employees often make in their compensation packages to accommodate this benefit.  

Addressing these very real barriers requires more than just policy adjustments; it demands a shift in organisational culture and individual mindsets.

So how do you shift a culture and change other peoples’ minds?

What are nudges?

In behavioural economics, nudges are defined as subtle interventions that encourage people to make decisions that align with overarching goals, without stripping them of their freedom of choice. According to Richard Thaler and Cass Sunstein, authors of Nudge, the most effective nudges are those that make it easy for individuals to "choose wisely" by setting the most beneficial option as the default choice.

In the upcoming parts of this series, we’ll be exploring various nudge strategies in more depth.  Each part will focus on a different type of nudge—informational, normative, convenience, and incentive—and illustrate how these can be strategically deployed to facilitate the transition from personal to pool vehicles.