An increasing number of fleet owners in the telematics industry are opting for rental agreements rather than purchasing equipment from telematics service providers. This trend applies to various telematics devices, including trackers, CAN readers, CAN converters, and different sensors. As a result of these evolving payment structures, the durability and reusability of telematics devices have become more critical than ever.
Why Are Fleet Owners Choosing Rental Agreements?
- Lower upfront costs – Leasing eliminates the need for a significant initial investment while ensuring that any device malfunctions are handled by the service provider at no extra cost.
- Reduced maintenance burden – This model shifts both maintenance and support responsibilities to the provider, guaranteeing regular updates and ongoing technical assistance.
- Future-proofing concerns eliminated – Fleet owners no longer need to worry about whether purchased devices will be compatible with new vehicle models in four or five years.
- Greater flexibility – Perhaps the most significant advantage is that fleet owners are not tied to a single provider due to the capital investment in hardware. If a service becomes uncompetitive, they can easily switch providers without financial constraints.
How Can Telematics Service Providers Adapt?
1. Deploying Durable and Reusable Equipment
- CAN readers, one of the most affected devices in this shift, come in multiple designs. The two most common mounting solutions are screw-fastened and click-on mechanisms. Each has its pros and cons: screw-mounted CAN readers may take longer to install, but they can be removed and reinstalled indefinitely. Additionally, the adjustable clamping force ensures a secure connection to CAN wires, even under extreme vibrations.
- Similarly, CAN converters must be built to last and support future reuse. However, another equally critical factor is database update capability. While moving a converter from one vehicle to another is simple, it becomes obsolete if it does not support the new vehicle model. At Inventure, we address this challenge by adding at least 400 new vehicle models to our database annually, following a structured evaluation plan that considers the most popular vehicle models and our partners' specific requests.
2. Reducing the Number of Required Devices
- Our FMS Gateway Compact solution aligns with this strategy by combining CAN data conversion and CAN reading into a single device, eliminating the need for a separate CAN reader.
- Taking this approach even further, the FMS Gateway Plus device not only performs CAN data conversion but also supports Tachograph Live data reception and Tachograph Remote Download (DDD file), removing the need for an additional device to collect this data.
The Growing Pressure on Telematics Providers
The rise of rental-based business models is placing immense pressure on telematics service providers. Only robust, reliable, and updatable equipment can help reduce maintenance costs while ensuring the necessary flexibility and competitiveness.
If you’d like to learn more about our solutions—designed to support rental models—we would be happy to discuss them in detail. Feel free to reach out via email, phone, or by filling out our consultation form on our website.
