Consider the impact of TaaS for fleet business in future

Sep 22, 2021

Consider the impact of TaaS for fleet business in future

Fleet Managers will be incorporating Transport as a Service in the solution to customers with the help of web-based digital fleet management software with GPS & mobile app integration,

The reality is that the concept of Transport as a Service (TaaS) foreseen in the future is already happening now. As car ownership keeps shrinking, owing to various reasons, embrace yourself for the business opportunities to be made possible by TaaS.

TaaS offers & enables the buying of kilometres per trips and the experience of riding (shared or unshared) without ownership of the vehicle for individuals or organisations. Because, TaaS relieves the hassle of ownership, such as fuel management, maintenance, financing, insurance, driving, traffic issues and even paying for parking or storage.

Cars are expensive to own and keep and are parked most of the time. Cars are polluting vehicles with IC engines contributing to global warming by the CO2 they emit. TaaS offers quick access to the needed transportation without any headaches of ownership as such.

Reasons for Change in Concept of Car Ownership

Cars are slowly losing popularity across the USA and other developed countries. Although some crowded cities here have started banning the use of combustion engines, there are other reasons too for the drop. Ride-hailing and car rental have become the alternative methods for personal transportation. More and more people are using these services, but the only factor stopping this service from increasing is the cost.

Using ride hailing services full-time can get more expensive than ownership. It’s not cost effective as it can work out to be even thrice the cost of owning vehicle per annum. Surge pricing and in rural areas immediate availability issues are other factors making it no match to ownership. Cities with large transportation networks (like metro railways) are other factors affecting this service.

However, the convenience of ride-hailing or even rental is unparalleled. Thanks to services like Uber, Ola and others, moneyed people without a car or vehicle find it the right choice in cities without mass transportation and very little parking spaces.

Factors in favour of ride-hailing or vehicle sharing.

  • No hassle of parking or storage
  • Reducing their burden of Carbon Footprint and asset ownership
  • Increased time efficiency and resource utilisation

Mobility management is getting into fleet business.

Mobility managers are the experts serving the TaaS industry. So fleet managers who depend upon vehicle ownership in their job description will in future see a shift in job description. It’s not the death of fleet ownership altogether, but a shift in the role. They will be advising/guiding clients about the options of shared mobility against the decision of buying vehicles for a fleet.

The main role of the mobility manager is to get people to their job site or place of interest. They will make up strategies and plan to incorporate various aspects of TaaS and subscriptions to vehicles as part of the solution. It could involve supplementing speciality vehicles with other vehicles not owned. The role involves selling a contract to the customers. It is similar to paying for a package of travel miles in a particular service provider’s fleet.

Concluding Note

Advanced technology, like Cloud Computing, AI, ML and IoT are getting involved in fleet business too. Quality and quantity of data churned out by the FMS software is increasing to more efficiently manage critical areas like driver behaviour, vehicle safety, fuel costs and maintenance, plus many other factors affecting efficiency and ROI. The software uses data insights to handle asset utilisation info, preventive maintenance, driver safety, compliance, route planning and  fleet optimisation.

The Fleet Management Solution is customisable software offered by Trinetra Wireless that also can be integrated with other systems you are using in your management of vehicles or fleets. Using  telematics technology and Data Analytics,  the software can generate, process and analyse the data to turn it into more relevant, valuable and insightful information to all stakeholders. This the right FMS software which is scalable and effectively addresses operational inefficiencies. It can help identify non-compliance and other discrepancies quickly to ensure strategic decision-making and corrective action.

If you are interested, we can arrange a ‘Demo. Any interested person or managers can assess our FMS software conveniently. Kindly contact our BD team as soon as possible to kick-off a useful partnership.

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