Are Your Employees Using Your Company Vehicles for an Uber or Lyft Side Gig?

17 Apr 2019

The side gig economy is bigger than many people realize, and companies that provide vehicles to employees may be surprised to learn their employees are using company property to carry out these side hustles without your knowledge. There are many reasons this can be problematic for businesses of all sizes. Below you’ll learn about a few important reasons this practice by employees could be bad for your business interests.

What’s the Big Deal about Employees Using Company Cars for Side Gigs?

Some employers aren’t all that worried about. You believe you’ve provided this “perk” to your employees and it is no big deal if they find a way to benefit even more from your largesse. But that doesn’t mean you shouldn’t be worried.

These are just a few reasons your employees’ side hustles could be bad for your business.

  • It decreases employee productivity. In a nutshell, they are tired when they get to work and that makes them less productive for you.
  • It diminishes the brand recognition your company cars deliver. Part of the reason many businesses provide company cars is to increase brand recognition. When your employees are delivering food for Grub Hub or picking up passengers for Uber or Lyft it diminishes that benefit.
  • Your company could be liable. If your employees are in an accident while carrying passengers, picking them up, or after dropping them off in your company car, your company could be on the hook for injuries and damages. More importantly, your insurance is not likely to cover these scenarios.
  • Increased maintenance and fuel costs for your company vehicles. The added miles every night increase mileage, fuel usage, and wear and tear on company-provided vehicles. This means greater maintenance costs and more risks while on the roads for your property and your employees.

As you can see, the risks are bigger than you might initially imagine. But how can you control how your employees use business vehicles after hours? The first thing you need to do is create a written policy regarding use of business vehicles when off the clock that expressly forbids usage for these types of side hustles.

Second, invest in GPS fleet tracking for all your business-owned vehicles. This records the number of miles employees drive during the day and after hours and helps to track what looks suspiciously like delivery or transportation activities in business vehicles.

It never hurts to remind your employees that usage of company vehicles is a privilege and a perk. One the company could revoke at any times. Responsible use of business property will help avoid that eventuality.

If you have concerns about employee use of company vehicles, take a look at GPS tracking solutions. It could help to confirm or dispel your suspicions.

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