About two decades ago when India started witnessing FDI, primarily in the BPO & KPO sectors. This generated an enormous amount of new job opportunities, especially for night shifts. Here is when the need for employee transport was felt. Lack of reliable transportation options, poor public transport infrastructure, and unsafe traveling environments encouraged corporates to offer employee transport services.

The need is still relevant today, however, the reasons have evolved. In today’s competitive corporate landscape, attracting and retaining top talent is more challenging than ever. One of the key differentiators that companies can offer to enhance employee satisfaction and productivity is a robust employee transport system. Providing reliable and safe transportation for employees not only improves punctuality but also contributes significantly to their overall well-being and job satisfaction. In fact, other industries such as manufacturing, healthcare, media, and more have recognized the importance of offering employee transport. They are striving to make office commute easier by offering cab and shuttle services.

In this comprehensive guide, we will delve into the concept of employee transport, its importance for corporates, the various types of transport facilities, and how companies can effectively implement these services.

What is Employee Transport?

Employee transport refers to the provision of corporates offering transportation services to employees to commute from their homes to workplace and vice versa. This service can be offered through multiple mediums, including shuttles, fixed cabs, and on-demand taxi services. Additionally, it includes offering transport services for ad-hoc employee travel such as client meetings, airport transfers, and other inter & intra-city travel.

This saves employees from the hassles of public transport, traffic congestion, and more. Thus, reducing the stress associated with daily travel and enhancing their overall productivity.

Types of Employee Transport Facilities

1. Fixed Home-to-Office Cabs’

Fixed home-to-office employee transport cabs is a dedicated service that picks employees from their homes or designated points and drops them off at the office. This type of service is typically scheduled according to the employees’ working hours and can accommodate multiple pickup and drop-off points along a predetermined route.

It’s comparatively more direct and convenient for employees and also reduces commute time and stress, enhancing overall punctuality. However, organizations might struggle with transport coordination and planning while offering home-to-office cab services. It can also be costly if the number of employees availing the service is low.

2. Shuttle Services

Shuttle services involve using dedicated buses to transport employees between specific points, such as from a common pickup location to the office. Shuttles usually operate on fixed schedules and routes, making them a cost-effective and efficient transport solution. However, organizations also offer feeder shuttle services, where a shuttle bus runs to a designated point such as a metro station to make further commute convenient.

Offering employee shuttle services is more cost-effective for the company, as compared to home-to-office cabs. Additionally, it reduces traffic congestion and promotes social interaction among employees. But, shuttle services are also less flexible as compared to home pick-ups.

3. Ad-Hoc Trips

Ad-hoc transport services are flexible, on-demand transport options that can be used for irregular or special transportation needs. This can include transportation for airport transfers, business trips, client visits, and more. It may also include non-recurring shuttle trips like off-site and team outings. They are highly flexible and convenient, catering to specific and immediate employee transportation needs. However, it requires efficient management and coordination.

How to Offer Corporate Transport Services to Employees

When setting up an employee transport system, companies need to consider various factors such as the size of their workforce, budget, and specific transport needs. Here are three primary approaches to offering corporate transport services:

1. Fleet Vendor

Engaging a fleet vendor involves outsourcing the entire transport operation to a third-party company that provides and manages the vehicles. The vendor is responsible for vehicle maintenance, driver management, and route planning.


  • Reduces the burden on the company’s administrative resources.
  • Professional management of transport services.
  • Scalable according to company needs.


  • Less control over the quality of service.
  • Potential for higher costs due to vendor margins.

2. Tech Vendor-Cum-Auditor

A tech vendor provides software solutions to manage and optimize the company’s existing transport resources. This includes route optimization, real-time tracking, and automated scheduling.


Enhanced control over transport operations.
Real-time monitoring and data analytics.
Cost-effective compared to outsourcing the entire operation.


Requires initial investment in technology.
The company remains responsible for vehicle and driver management.

3. Fleet plus Tech Vendor

Combining the services of a fleet vendor with a tech vendor offers a hybrid solution that leverages the strengths of both approaches. The fleet vendor provides the vehicles and drivers, while the tech vendor offers the software to optimize and manage the transport operations.


Comprehensive solution covering all aspects of transport management.
Improved efficiency and service quality.
Scalability and flexibility.


Can be complex to coordinate both vendors.
May involve higher costs initially.
May lead to cost discrepancies.

Related Read: 11 Questions to ask before investing in an Employee Transport Software

Benefits of Offering Employee Transport for Corporates

1. Enhanced Employee Satisfaction and Retention

Providing employee transport is a significant perk that can greatly enhance job satisfaction and employee retention. It eliminates the stress of commuting, which can be a major source of daily anxiety for many employees. Knowing that the company takes care of their transportation needs can make employees feel valued and appreciated.

2. Increased Punctuality and Productivity

Reliable transport services ensure that employees arrive at work on time, reducing absenteeism. This punctuality directly translates to increased productivity as employees can start their workday promptly and without the fatigue caused by stressful.

3. Promote Employee Safety

Safety is a major concern for companies, especially for employees who travel during late hours. Offering a secure transport system can alleviate safety concerns, particularly for female employees, thereby fostering a safer work environment.

4. Cost Savings for Employees

For employees, corporate transport services can result in substantial savings on fuel, parking, and vehicle maintenance costs. For companies, investing in a transport system can lead to reduced turnover rates and lower recruitment costs.

5. Environmental Benefits

Corporate transport solutions, especially carpooling and shuttle services, can significantly reduce the number of vehicles on the road, leading to lower carbon emissions. This not only benefits the environment but also helps companies meet their sustainability goals.


Understanding the different types of transport facilities and choosing the right approach—whether it’s engaging a fleet vendor, tech vendor, or a combination of both. We recommend you choose dedicated vendors as it will help you minimize discrepancies and they will also act as auditors against each other, enabling more transparency.

Related Read: 6 P’s of Employee Transport Service Business