Ridesharing has exploded in popularity over the last several years. For car rental and taxi cab operators that have felt the pinch of competition, fleet maintenance is the first area to review when looking for better ways to trim costs and boost efficiency.
An enterprise asset management (EAM) software platform is the ideal tool to create a fleet maintenance strategy that offers your organization the economic edge it needs. EAM helps you put real dollars-and-cents data into every asset decision.
The repercussions of ridesharing
Many observers agree that mobile ride-hailing services will continue to poach profits from established car rental and taxi cab operators in the near future.
For example, since Uber first began in San Francisco in 2009, the number of shared rides in the U.S. has increased continuously, year-over-year. Today, Uber sees over $12 billion in annual global revenue. And according to the Seeking Alpha community, Uber’s revenue from food delivery alone nearly tripled during the third quarter of 2020.
For traditional fleet-based businesses, ridesharing has disrupted the local market. New York taxi owners especially have found themselves on the front lines of the battle.
In 2012, before the city’s introduction of car-hailing apps, lenders foreclosed on only five taxi-medallion loans. However, as Uber and Lyft grew in acceptance, so did foreclosures. TheDaily News reported that the number of foreclosures shot up every year, reaching 510 foreclosures in 2019.
And it’s not just taxis feeling the heat of competition.
The global car rental industry is doubly concerned, as operators are also seeing economic impact from COVID-19. Because of travel restrictions, rentals have declined 31.7% in 2020, according to a report by ResearchAndMarkets.
In order to compete with ridesharing and thrive into the post-pandemic era, fleet owners must rethink how they manage their businesses. Any cost savings can make a difference.
How taxi and car rental companies can compete
While times may seem tough for taxi and car rental companies, enterprise technologies can position these fleet-based organizations for success.
In particular, enterprise asset management (EAM) software for fleet maintenance is the foundation of your digitalization strategy, ensuring that your data is useful and effective for decision-making—not just data for data’s sake. EAM is what allows fleet managers to improve efficiency and trim unnecessary maintenance costs so they can accomplish more with less.
What fleet maintenance software does
A key function of EAM fleet maintenance software is in its power to store a vast amount of asset data in a centralized location and leverage it in ways that deliver business results. With a single database, leaders can retrieve, compare, and analyze information with ease.
This type of detailed knowledge creates a solid foundation for finding the best opportunities to compete against ridesharing companies.
EAM software also makes it possible to simplify everyday tasks across the enterprise. For example, your team can schedule and track work orders, monitor inventory levels, or pull up any fleet asset history in seconds. And with mobile capabilities, work orders can be created or closed out from the road, the service garage, or anywhere.
It empowers organizations to connect their fleet investments to the bottom line of the business and make a true value proposition based on real-world data.
How fleet maintenance software provides an edge
Efficiency is a pillar of business survival. And that’s exactly what EAM software allows you to do.
Fleet managers make sharper decisions when they’re able to see the big picture. Just look at this result: After implementing ManagerPlus EAM software, one transportation and logistics operation saved$600,000 in a single year. That’s a huge competitive advantage.
Cutting direct costs and streamlining preventive maintenance unlocks valuable capital that helps you pull ahead of the competition.
Fleet managers are always under pressure to lower their maintenance costs while keeping vehicles up and running for less. Yet, there’s no one-size-fits-all way to do that. Upkeep is a never-ending experience of continuous process improvement.
But what if you could extend the uptime of assets to improve their overall value?
With EAM software, you’ll have access to powerful maintenance scheduling and work order management. Instead of manual schedule planning, detailed analytics let you create a forward-looking preventive program that heads off problems before they happen. And simple drag-and-drop functionality lets you reorganize in seconds.
A powerful EAM will trigger automatic work orders to cue the PM tasks right on time so nothing falls through the cracks. With automated workflows, the fleet manager saves time and has the peace of mind that the fleet is always in optimal condition.
Manage safety and compliance
Keeping employees and vehicles safe is a top priority for any fleet manager. Seamless access to compliance data along with real-time reports helps avoid regulatory fines, providing peace of mind for managers and employees.
Safety and compliance tasks, such as Driver Vehicle Inspection Reports (DVIRs), are more convenient with a management platform. TheManagerPlus inspection module is a powerful digital component that speeds up inspections and closes the loop on corrective actions.
With the mobile inspection module, operators can:
Provide real-time updates from the road
Sign off on DVIRs
Initiate corrective action work orders
Document inspection for regulatory compliance
Create a digital audit trail
EAM software lets fleet managers collect the DVIR documentation required for every asset. And in-depth reporting capabilities make it easier than ever to retrieve compliance reports and respond to audits. That type of documentation can protect your organization, helping you avoid costly fines from regulators.
Make informed inventory and purchase decisions
To run an effective PM program, it’s essential to have the right parts on-hand at the right time. Having to order parts causes downtime that hurts your asset availability and your ability to compete with ridesharing.
ManagerPlus integrates inventory tracking with maintenance operations. This allows for optimizing stock levels, minimizing unwanted carrying costs, and making better dollar-and-cents decisions about purchases.
Even better yet, the barcode and QR code scanning feature included in the mobile app for technicians allows your teams to scan parts to ensure the right part is used for the right fleet vehicle. It’s a time saver that also improves accuracy and prevents errors.
Understand Total Cost of Ownership (TCO)
When you’re responsible for a fleet, getting the best value from every asset is essential to staying competitive in the era of ridesharing.
Measuring an asset's true cost is tricky—the total includes acquisition plus other harder-to-track expenses, such as operation and maintenance. The reward is worth the effort, though, as tracking total cost of ownership (TCO) helps determine when to repair or replace vehicles.
EAM software makes it simple to view the TCO for every vehicle asset. Because all the associated fleet maintenance costs are tracked in one place, calculating and pulling up a vehicle’s TCO is painless. Everyone in the organization can see the information they need to weigh the long-term proposition of a purchase.
Streamline tasks with automation
Asset managers should streamline as many tasks as possible to maintain a competitive advantage. One way to free up time is to cut down on administrative work by automating procedures.
EAM software automates work orders and optimizes scheduling, ensuring everyone on the team can make the most of their hours. Overall, automation speeds up repair turnaround time, minimizes downtime, and boosts asset availability.
Also convenient are EAM features such as automatic report delivery to your inbox. Design a custom report and schedule it for instant delivery daily, weekly, monthly, or any time period that works for you. Comprehensive data helps you make smart business decisions.
Simplify business planning
With operational data readily accessible, managers can view a complete picture of fleet assets and how they impact the bottom line. Is it time to replace a vehicle? How much did you spend on preventive maintenance versus reactive maintenance last year? Your EAM can tell you.
When competing with ridesharing it’s essential to know how your vehicles deliver value. ManagerPlus Lighting makes this possible by tracking and calculating key metrics for each asset.
With a handle on your current business costs, future planning is straightforward. For example, you’ll know if it’s economically possible to expand into new markets, or whether you should choose a different type of vehicle to sharpen your competitive edge.
The popularity of rideshare apps is still growing, and car rental and taxi companies are re-examining their competitive advantages. It’s a disruption in the market for sure, but improving efficiency is the key to survival.
For business owners, investing in fleet maintenance software is a reliable way to level the playing field. With every bit of asset information unified into a single program, you’ll gain valuable business insights that make it easier to streamline tasks and make smart decisions.