The guide to making freelance fuel management for SMEs work
The gig economy has given rise to more flexible, temporary and part-time working positions. These are often filled by freelancers and contractors, as opposed to full-time permanent staff. It’s rapidly changing the way businesses think and act, especially those dependent on a fleet of reliable drivers.
Small and medium-sized enterprises (SMEs) are increasingly turning to freelance drivers because of the flexibility they can offer during the peaks and troughs of Christmas and the quieter January.
It's a change that brings opportunities and challenges, especially when it comes to managing the largest expense for transport businesses… fuel.
But there are easy ways to build a perfect model that allows firms to benefit from the freelance model while also saving on fuel and increasing efficiency in the face of fluctuating prices at the pumps.
Understanding the Gig Economy and Its Impact on SMEs
The gig economy's short-term jobs and freelance shift model means SMEs can save money by only employing drivers when they're needed and without having to pay the extra costs that come with regular employees.
The flip side is that freelance drivers usually use their own vehicles and take care of their own fuel expenses, which they will submit later. That in turn means businesses need to track fuel use effectively with a clear reporting framework and good cost control to stay profitable.
The Rise of Freelance Drivers in the UK
The number of freelance drivers has soared with the growth of ecommerce buyers and sellers in recent years, especially in cities where the gig economy provides a good way for people to earn money by working flexibly.
Factors including better technology, easier access to online platforms and people wanting different work styles have all helped make freelance driving a popular main job or sideline. Many small and medium sized businesses have seized the possibilities to manage their logistics and fuel expenses better.
How Freelance Driving Affects Fuel Management
Freelance drivers who own their own vehicles, including diesel cars and vans, have traditionally looked after their own fuel management, but that can make it hard for SMEs to have visibility of how much fuel they use or benefit from bulk discounts on their fuel expenditure, ultimately affecting their greater control over costs. There's also the issue of added admin time and resource in sorting the invoices out.
Strong fuel management systems and tailored plans that fit the unique challenges of freelance driving are essential in the changing work environment.
Essential Fuel Management Strategies for SMEs
By using smart approaches, businesses can lower fuel spending and make their operations by planning routes better and improving driver behaviour through technology.
Route planning is crucial if freelance drivers are to plug in to your firm's quest for heightened fuel efficiency. Choosing the best routes inevitably lowers mileage, cuts time on the road and if they also take in the cheapest forecourt prices, it's a win for you and the drivers.
Navigation apps offer live traffic updates and alternative routes to help your fleet manager avoid congested areas, as well as helping you organise deliveries or pickups in a smart or grouped order to save on mileage. Using route planning wisely means businesses can reduce their environmental impact and improve their bottom line.
The free fuelGenine app can streamline this process for drivers. In one app, they can plan their journey and find their nearest fuelGenie petrol station – all in just a few taps.
Implementing a tech-led Fuel Monitoring System
Strong fuel management for SMEs means a system capable of sharing data about how fuel is used, how drivers act and where there is room for improvement – all important when dealing with a freelance workforce.
Real-time updates on how much fuel each vehicle or driver is using helps businesses spot trends or issues while being able to check on speed, idle time and erratic braking. Detailed reports into fuel costs and distance travelled enable firms to make better choices about route planning and training.
Advantages of better monitoring of Freelance Drivers
As well as the tech support that comes with them, fuel cards are key to saving money and having better control over fuel purchases. The credit card style system allows businesses in the gig economy a better level of control over freelance drivers as part of a simple fuel management process that emphasises sustainability. They also make life easier for the drivers and help cut admin and outgoings, so everyone is happy.
How can Streamlining Fuel Expenses and Reporting help SMEs?
By bunching all fuel transactions into one handy account like fuelGenie, fleet operators and business owners can benefit from online account management, receive one clear invoice for all fuel purchases, access detailed reports on fuel use, costs and mileage, and block unauthorised spending or fraud. Fuel card users get complete control over discounts and rewards through special deals for cost savings and lower fuel prices at certain petrol stations, while the software that supports the cards enhances drivers' experience on the road. And with fuelGenie+ there are even more benefits, like access to more locations and larger vehicles.
Fuel management for SMEs in the gig economy can be a huge advantage, but if the freelance drivers aren't managed well, it can lead to administrative inefficiencies and headaches that eat into any savings. By encouraging freelance drivers to operate efficiently as part of a streamlined system, the rewards in tracking expenses and saving time and money are huge.
