A fleet telematics system is a method for managing vehicle fleets by combining in-vehicle hardware with a centralized software platform. This integration facilitates the real-time collection and analysis of data related to a vehicle's location, its mechanical health, and the performance of its driver. While it uses vehicle tracking for foundational automatic vehicle location, a comprehensive telematics system goes further by tapping into a vehicle's onboard diagnostic systems. It is a component of fleet digitalization, transforming raw data into insights for improving efficiency, safety, and lowering the total cost of ownership (TCO).
These systems are used in modern fleet management, providing data on everything from fuel consumption and engine maintenance to driver scoring and route planning. A common challenge that modern platforms address is the consolidation of data from a mixed fleet of vehicles and machinery from various manufacturers into a single, unified system. The technology is used in commercial industries and for consumer services like carsharing and ride-hailing platforms such as Uber and Bolt.