/ Automotive

A business case for fleet telematics

Telematics refers to the use of data over long distances, and, in the mobile app industry, telematics often refers to fleet management telematics. By their nature, vehicle fleets are spread out across a city or even an entire country. Fleet managers must keep tabs on each vehicle in order to optimize fleet performance – both in terms of maintaining vehicle health and also maximizing driver utilization. Mobile apps can help fleet managers with these tasks, as they can provide mobile tracking, communication, and constant data feeds between the vehicle, driver, and fleet manager.

Fleet management telematics solutions aren't simply a “nice-to-have” or another toy for a data-obsessed administrator. Such telematics solutions actually result in fleets both saving costs and increasing revenues. In this article we will highlight important areas in which telematics can impact your bottom line.

Decrease fleet fuel costs

Fleet managers know that one of their highest variable costs is fuel. Fuel costs depend on uncontrollable geo-political events, however they also depend on driver behavior and driving tendencies. Drivers who unnecessarily break and rapidly accelerate will use more fuel than those who make more gradual changes in speed. Similarly, drivers who speed or take corners harshly will also expend unnecessary fuel. With fleet management telematics, drivers with such behaviors can be quickly identified, as the mobile app can track both changes in location and speed. These behaviors can then be addressed and changed, and fleets can thereby reduce unnecessary fuel expenditures. Additionally, telematics apps can be integrated with fuel card banking information in order to more accurately and automatically track real-time fuel expenditures.

Decrease insurance costs

When driving behavior is known via telematics app monitoring, insurance companies can calculate custom risk profiles for each fleet. If drivers maintain safe driving behaviors over time, insurance companies can adjust the monthly risk premium they charge the fleet, and the company can thereby save money. While few insurance companies offer this custom pricing based on telematics data, more and more insurance companies are beginning to offer this flexibile pricing for their financial products.

Increase driver utilization

If fleet managers know where drivers are at all times, they can more quickly and more efficiently manage driver dispatch in order to maximize the time drivers have goods in their vehicle. Additionally, much of this load-matching can be done automatically and algorithmically. If a driver is behind schedule and another driver can be reassigned, this can be done automatically by the app which will push notifications to involved drivers. Not only does this matching increase revenues for the fleet, but it can also help decrease employee payroll costs as fewer human fleet managers will be needed to coordinate company load matching.

Maintenance and service scheduling

“An ounce of prevention is worth a pound of cure” also applies to vehicle fleets. If vehicles are not properly maintained and serviced, this can lead to the compounding of vehicle engine issues. Neglect in the area of vehicle maintenance can actually end up costing the company more than if the vehicle had regular maintenance performed. Across a fleet, this regular maintenance will not happen if it is not properly managed. Maintenance needs can repeatedly become the priority of tomorrow until several months have passed and routine issues become more difficult vehicle problems. Mobile app telematics can help with this management, as they can provide reminders to drivers and fleet managers regarding when a vehicle is due for service based off of the amount of miles the vehicle has traveled. More sophisticated solutions can integrate with fuel consumption and help diagnose service problems if the vehicle suffers decreased Miles per Gallon with driver behavior staying the same.


Telematics provide the data for fleet managers to carry out data-driven management of their fleet and drivers. This management can help identify and diagnose problems remotely, so that any unnecessary costs or missed revenue opportunities are caught immediately rather than months down the line. To learn more regarding fleet telematics, check out Psngr, a mobile app telematics solution developed by 100grams.