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Financial Benefits
How eFleet™ Earns and Saves you Money

Example Based on a 30 Car Fleet
Scalable and Applicable to Any Size Fleet

EXECUTIVE SUMMARY
The five sections in this document outline areas where a transportation fleet operator will not only realize substantial cost savings by implementing the eFleet™ system, but can also achieve significant increases in revenue by creating new income opportunities.

Combining the easily quantifiable monthly cost savings and additional revenue opportunities from this analysis, the totals are as follows:

Plus the savings from any existing systems that eFleet™ makes redundant, such as:

• Cell phones
  
• Wireless credit card processing terminals
• GPS tracking systems
  
• Navigation systems

Plus the benefits of improved customer service, such as:

• Retain customer accounts
  
• Acquire new accounts
  
• Charge premium prices
  
• Expand your business
  
• Surpass the competition

The investment by the fleet operator in the eFleet™ system over a three-year period, including the optional WiFi equipment and wireless data services, would be approximately $175K. This provides a return on investment on the order of 540% every three years.

Since the eFleet™ system is a subscription service, and it includes the lease of the majority of the hardware equipment, the actual investment capital is minimal. Improved profitability will be realized almost immediately due to streamlined operations.

Assumptions:

Here are the operational assumptions used to prepare this example ROI analysis. These parameters are taken from industry averages and experiences with various fleet operators in the chauffeured transportation industry. Each operator will need to scale and adjust the numbers to reflect their actual operations.

PART 1 – COST SAVINGS FROM REDUCED STAFF COSTS AS A RESULT OF DISPATCHING EFFICIENCIES

The eFleet™ system replaces phone or radio dispatching by automatically sending trip information to Mobile Data Terminals in vehicles, and sending trip status updates back to dispatchers. It also allows instant message communications with “canned messages” permitting full two-way communications without phone or radio calls.

Operational efficiencies reduce the amount of time Dispatchers spend on the phones with chauffeurs on a daily basis to make them more productive. When dispatchers aren’t tied up on the phones with chauffeurs they can either dispatch more vehicles with fewer dispatchers or perform other tasks such as taking trip reservations. This results in staff reductions or reduced working hours, and therefore bottom line savings for the company.

The eFleet™ system can conservatively save 10 minutes of phone time per vehicle per day by utilizing the trip status updates and the messaging features built into the eFleet™ system - thus also reducing the opportunity for unnecessary chatter between dispatchers and chauffeurs. The net results can prove to be very valuable:

This equates to potential staff cost savings by reducing work hours or eliminating staff positions.

PART 2 – ADDED REVENUE THAT MAY BE REALIZED BY IMPLEMENTING THE EFLEET SYSTEM

This section deals with potential additional revenue from two sources – collecting revenue that had previously gone to “side jobs”, and adding WiFi Internet access in vehicles.

A) Unauthorized Vehicle Usage
The eFleet™ system allows close monitoring of vehicle movement and chauffer activity. Without this monitoring the company could easily be losing business, but paying the costs, of trips that are not reported or recorded. Industry averages estimate about 2 side jobs and 4 personal trips per chauffer per month.

B) WiFi Access Revenue
An additional feature of the eFleet™ system (optional add-on) is the ability to provide WiFi Internet access for clientele in the vehicles. This has the potential to become a significant additional profit center for the company if managed accordingly. The calculations below illustrate how the WiFi feature could be used to generate additional profit. With each reservation, just ask whether the client may require WiFi access during the trip:

PART 3 – REDUCE MILEAGE AND ASSOCIATED MILEAGE COSTS

By utilizing the eFleet™ system to dispatch the closest vehicle, and ensuring optimized trip routing through automated navigation and GPS tracking, there will be a noticeable improvement in fleet operating efficiency. This will reduce all the costs associated with vehicle mileage including fuel, maintenance, and depreciation costs.

Industry averages indicate that a savings of approximately 20% on mileage costs are realized by implementing these systems. For analysis we will conservatively use 10% as the mileage cost savings.

Fleet Mileage Savings:

Note: The eFleet™ system also provides speed monitoring which tends to further reduce fuel and maintenance costs, although it is more difficult to quantify.

PART 4 – IMPROVED REVENUE COLLECTION TIME AND PAYMENT PROCESSING COST

The eFleet™ system enables chauffeurs in the vehicle to enter any extra charges/fees that may be incurred during a trip. All items are configurable in the system and may include such things as highway/bridge tolls, parking fees, extra stops, extra passengers, beverage glass rental, etc. Any of these extra charges/fees are immediately available in the payment processing module of the dispatch software. This allows trips to be closed and revenue collected sooner, and with less staff time. It also improves billing accuracy by reducing the number of steps involved, thus reducing the chances of incorrect data entry. Correcting inaccurate billing is one of the most detrimental aspects of transportation operations; it costs money for staff time, while simultaneously aggravating customers – and often results in the inability to collect full payments.

This triple benefit of faster revenue collection, reduced staff time, and improved billing accuracy has been called a “life saver” by some operators. Savings to fleet operations from the in-vehicle payment entry features can produce result as follows:

Data Entry Time Savings:

Revenue Collection Savings:

Billing Corrections Savings:

PART 5 – REDUCE OR ELIMINATE COSTS OF ALTERNATIVE TECHNOLOGY

The eFleet™ system allows operators to do away with alternative, disparate technologies that are no longer needed as a result of implementing the integrated eFleet™ system.

Some of these technologies may include:

• Cellular phones (utilize eFleet™’s 2-way messaging feature to communicate with chauffeurs).
  
• Wireless point-of-sale terminals (utilize the credit card reader built in to eFleet™ mobile data terminal).
  
• Vehicle tracking systems (utilize built-in tracking system offered by eFleet™).
  
• In-vehicle navigation units (utilize eFleet™ nav system with Auto-Nav feature).

These decisions will be up to you, and the cost savings are evident so they don’t need to be spelled out any further here.

IMPROVED CUSTOMER SERVICE

Although difficult to quantify, there is no question that superior customer service has monetary value. It helps retain customers, attract new customers, maintain higher fees for services, and attract more farm-in jobs from associated operators.

Here are a few examples of how the eFleet™ system can help the fleet operator offer better customer service:

• Dispatch nearest vehicle – arrive sooner
  
• Provide complete and accurate trip and guest details to chauffeurs
  
• Reduce travel time and time looking for destination by using auto-navigation
  
• Provide accurate ETA of pick-up and drop-off times using GPS tracking and auto-navigation
  
• Reduce/eliminate chauffer chatter on phone or radio by using silent Digital Dispatching
  
• Provide silent advance notification to hotel, or other destination, of their guest’s imminent arrival
  
• Provide wireless internet access for guests in vehicles
  
• Offer in-vehicle credit card payments and receipts
  
• Provide correct and accurate, itemized invoices including details of all extra fees as entered by the chauffeur
  
• Provide a superior, professional environment using state-of-the-art technology

SUMMARY

Combining the easily quantifiable cost savings and additional revenue opportunities from this analysis, the totals are as follows:

MONTHLY OPERATIONAL SAVINGS AND ADDITIONAL REVENUE TOTALS RESULTING FROM EFLEET IMPLEMENTATION:

Plus the savings from any existing systems that eFleet™ makes redundant, such as:

• Cell phones
  
• Wireless credit card processing terminals
• GPS tracking systems
  
• Navigation systems

Plus the benefits of improved customer service, such as:

• Retain customer accounts
  
• Acquire new accounts
  
• Charge premium prices
  
• Expand your business
  
• Surpass the competition

The investment by the fleet operator in the eFleet™ system over a three-year period, including the optional WiFi equipment and wireless data services, would be approximately $175K. This provides a return on investment on the order of 540% every three years.

Since the eFleet™ system is a subscription service, and it includes the lease of the majority of the hardware equipment, the actual investment capital is minimal. Improved profitability will be realized almost immediately due to streamlined operations.