EROAD is aiming to expand its fleet management offerings across Australasia through a strategic partnership with Canadian-based telematics provider Geotab.
In a statement, NZX-and ASX-listed EROAD says the deal brings together the strengths of both companies to target new opportunities in the light commercial vehicle sector.
It will see the integration of Geotab’s hardware with EROAD’s advanced fleet management platform.
EROAD is one of the largest telematics providers in Australasia while Geotab, which is privately owned, has over four million connected vehicles globally with strong OEM relationships.
According to company analysis, the global telematics market is growing at an annual rate of around 12-16%, with significant potential in both New Zealand and Australia.
It is estimated that the light commercial vehicle fleet size is around 800,000 in New Zealand and four million in Australia.
However, EROAD’s research indicates that only 48% of these fleets currently use telematics, revealing a substantial opportunity for growth in the space.
The partnership’s first initiative is the launch of EROAD Locate, a “simple and cost-effective telematics solution” for light commercial vehicles, utilising Geotab’s GO9 device.
The product will be introduced in New Zealand and Australia, targeting mainstream fleet operators who need a solution to track and manage their vehicles efficiently.
“This partnership with Geotab marks a significant milestone for EROAD’s growth,” EROAD co-chief executive Mark Heine says.
“We have excelled in delivering solutions for fleets with complex needs. Now, with EROAD Locate, we can offer an appealing and affordable option for light commercial vehicle fleets, allowing more businesses to access the benefits of telematics.
“This partnership with Geotab accelerates our ability to deliver a low-cost, high-quality solution that meets the needs of a wider range of fleets, especially those that have been priced out of telematics solutions in the past.
“With this partnership, EROAD is well-positioned to drive future growth and continue innovating within the fleet management space, delivering greater value to its customers and expanding its footprint across Australasia,” Heine says.
