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Data for today’s episode is provided by Mercator Advisory Group’s report – U.S. Fleet Card Market Review and Forecast, 2018–2023.
Fleet Management Software Nets Substantial Cost Savings:
- For the trucking vertical, fleet management software yields 6% savings in fuel, accidents, and labor.
- The largest single savings from fleet management software affects commercial work trucks, with a 17% reduction in accidents.
- Fleet management software had the lowest impact on commercial work trucks in fuel, but still had an 8% reduction.
- Ground transportation saves 14% on labor when using fleet management software, and another 16% on accidents.
- Government, as a category, saves ~10% across fuel, accidents, and labor when using fleet management software.
- Fuel might represent up to 22% of total cost of ownership for fleets in North America.
- Mercator Advisory Group predicts that by 2026, hybrid & electric vehicles could reduce network interchange revenues by up to 12%.
In a new research report, U.S. Fleet Card Market Review and Forecast, 2018–2023, Mercator Advisory Group reviews the estimated current market size and network share, projecting spending through 2023. The report delves into the issues and trends affecting this niche portion of the payments industry.
“The closed loop network portion of the spending continues to predominate since industry legacy approaches reside with larger fleets and the specialized controls associated with the more abundant data capabilities in these systems,” commented Steve Murphy, Director of Mercator Advisory Group’s Commercial and Enterprise Payments Advisory Service, author of the report. “As the service providers attempt to broaden their reach into small businesses and midsized fleets, collaboration with open loop network products will increase. This is one way to offset fuel price volatility and efficiency impacts in the shorter term, while a looming change is also there from the effects of alternative vehicles. Industry participants recognize the challenges and a need to adapt to the latest-generation technology, and there is general optimism that challenges will be met successfully.”