Motus has grown into a $100 million business in a little more than five years by making mileage reimbursement easier for companies and their employees. Craig Powell, CEO and president of Boston-based Motus, said the cloud-based platform is used by employees in a variety of sectors, including pharmaceutical sales reps, traveling nurses and elevator inspectors. These types of workers drive about 17,000 miles annually for their jobs.
“These are folks [who] drive a non-specialty vehicle, not a licensed truck driver or a bread truck,” Powell said, according to Forbes. “Instead of the company buying you a beige car with a beige interior, they decided to reimburse you for using your personal car.
Motus uses Fixed and Variable Rate (FAVR) reimbursements, the only method recommended by the IRS. Instead of a blanket rate, employees are reimbursed for their own fixed and variable costs. Fixed costs include insurance premiums, license and registration fees, taxes and depreciation, while variable costs include gas, oil, maintenance and tire wear.
“With Motus, it’s easy to administer a tax-free, fair and accurate FAVR program with our real-time, cloud-based technology platform that calculates the exact cost of driving, specific to each individual employee,” according to the Motus website. “By reimbursing your employees based on how much they drive and where they drive, your business achieves hard cost savings. And with a fully automated process in place, your employees get valuable time back in their day to be more productive. It’s a win-win for everyone.”
Powell said the company is considering expanding into other business expense areas in the future.
“We’re continuing to grow in our core vehicle space with a little less than 10 percent market penetration in eight verticals,” Powell said. “What we get excited about is ‘how do you take the methodology beyond cars?’ Are there other categories we haven’t done yet? As we think about the future, those are the things we get keyed up about.”