Joined-up thinking: connected cars and the future of fleets
Feature
Technology is revolutionising the way vehicles are driven and fleets are managed. BVRLA chief executive Gerry Keaney explores the latest innovations in telematics, and examines the privacy issues which surround them.
The latest generation of connected vehicles are cleaner, safer and much more communicative. Information that was once only accessible by lifting the bonnet or plugging into the onboard diagnostics port is now being transmitted in real time. By 2020, it’s estimated that 33 million vehicles will be sold each year with in-car connectivity, which will generate more than 163 million terabytes of data each year between them. That’s the equivalent to 163,000,000,000,000 (163 billion) books.
More connected services
The in-car connectivity that is being fitted is also known as telematics. In trucks the tachograph may be classed as a telematics device, while in cars, drivers may be more familiar with manufacturers’ own equipment, which is delivering more connected services. From April 2018, automatic emergency call – or eCall – will be fitted as standard to every new car sold in the EU. This technology will enable new cars to detect the severity of a crash and automatically dial the emergency services. Using speakers and microphones, it can connect occupants with an operator even if they’re trapped within the car.
This kind of technology means that it is now possible for people outside the car – employers and fleet managers, for example – to monitor the location, speed and distance travelled while an individual is driving on company business. Yet it also raises concerns about how fleets will continue to offer their own services – such as roadside assistance and service management – when vehicle manufacturers will be able to communicate directly with the car itself, as well as the driver.
Essentially, the arrival of the connected car means that the dashboard is now a point of sale for all kinds of products and services. There is also the fear that vehicles themselves are capable of delivering gigabytes of valuable real-time data, and fleet managers could be overwhelmed. The vehicle rental and leasing industry needs to adapt to this new environment and ensure that it continues to offer a range of innovative mobility services.
Most efficient routes
Looking forward, the vehicle of the future will be able to use up-to-the minute information from the internet to deliver vehicle occupants to their destination even more safely, efficiently and conveniently. Currently vehicles can use an internet connection to plot the most efficient routes avoiding traffic, but in future, integration into the Internet of Things will unlock a host of vehicle and transport-related services, as connected cars share data with other vehicles, other modes of transport and the infrastructure around them – this is what is meant by ‘Intelligent Mobility’.
Having access to real-time vehicle data and running it through sophisticated algorithms will allow preventive diagnostics – thereby enabling fleet managers to predict the remaining life of serviceable car parts. This could make it possible to avoid expensive repairs by getting vehicles booked in for a service in advance, thereby avoiding long periods of vehicles being off the road.
Technological and business convergence
This new environment is heralding a new era of technological and business convergence involving OEMs, mobile network operators, insurers, technology companies and fleet operators. Collecting, analysing and delivering services based on this data represents a massive revenue opportunity.
But increased revenue is not the only opportunity being provided by the connected car. The ability to track and manage vehicles’ whereabouts not only has the opportunity to overwhelm fleet managers, but it could also create serious headaches due to the privacy issues. What data is being captured? Who owns it? How is it accessed? Regulators and legislators are failing to keep pace with this new environment, and current data protection, type approval and block exemption regulations are well out of date.
The BVRLA has been discussing the issue of vehicle and driver data with members and key stakeholders since 2013. It featured in both our 2014 and 2015 Fleet Technology Congress, and at our 2014 and 2015 Industry Conferences. The BVRLA Fleet Industry Manifesto, published in December 2014, spurred the government into creating a Centre for Connected and Autonomous Vehicles (C-CAV), which was announced in July 2015. The BVRLA has continued to work with it ever since.
Also in 2015, the BVRLA published the results of its annual Fleet Technology Survey. This research revealed that 97 per cent of fleets are excited about the changes new automotive technology will bring to the sector, but the 58 per cent said it is difficult to quantify the benefits.
These findings collected the views of more than 150 fleet managers, rental operators and leasing companies. While one third claimed to be early adopters of new vehicle technology, more than half said they will wait until they can demonstrate a clear return on investment.
Positive impacts
While data remains a key operational concern, it is road safety that has emerged as a key theme throughout the BVRLA’s discussions. Autonomous driving and safety technologies were described as having one of the most positive impacts on the fleet industry, second only to ultra-low emission powertrains. Similarly, reduced accident rates were described as a key benefit of new technology, second only to reduced transport costs.
Looking forward to 2020, respondents said that Autonomous Emergency Braking (AEB) and in-car video would be the most important safety technologies for fleets. Having spoken with its members, the BVRLA will spend much of 2016 working to ensure rental and leasing companies are able to meet fleets’ needs by tackling the main issues.
The BVRLA recognises that it will take time to put this new regulatory environment in place. In the meantime, it is working with members to address some of the immediate operational issues surrounding the current generation of in-car connected services.
In particular, the BVRLA wants to protect its members’ rights as vehicle owners to opt out of any connected offerings that might conflict with the services they offer, for example breakdown or roadside assistance, accident services and the arrangement of any servicing and repairs. It is also seeking clarification around which driver data is collected by vehicle manufacturers, and who is responsible for meeting data protection rules.
New vehicle technologies
As usual, the vehicle rental and leasing industry will play a major role in adopting new vehicle technologies. Not only will BVRLA members adopt these new vehicles and systems, but they will take the lead to ensure they are at the forefront of these trends to get effective use out of the latest developments and deliver the benefits for their customers.
The BVRLA will continue to assist its members with advice, information and resources that will minimise any disruption to businesses, and enable them to fully harness the benefits of this new technology.
