After a challenging year of growth and opportunity comes to a close, we can evaluate our 2022 predictions for fleet management. Technology, safety, and cost reductions are top priorities for companies.
Here is a recap of our 2022 challenges and predictions:
Our 2022 predictions focused heavily on challenges that fleet managers consistently face: fixed time and fluctuating costs. We predicted these challenges would provide opportunities for new technological advancements and growth, including:
- Autonomous vehicles
- Mobility-as-a-service models
Fleet managers frequently cited safety as a top concern for 2022, leading to more investments in telematics and GPS software.
The global telematics market climbed to $103 billion in 2022, growing $15 billion from the year prior. This is the most significant uptick in growth in this sector that we’ve seen so far.
We also anticipated a spike in autonomous vehicle creation. As of right now, these fleets are still in production and testing. Many expect the last-mile delivery market will be the first to taste this technology.
Companies like Domino’s are introducing partnerships with robotics companies, such as Nuro, to provide high-quality, self-driving delivery. The project is still in test mode but serves as a reminder that a driverless delivery future is not far off.
MaaS refers to products and resources that are conveniently rented by multiple people for short periods of time. Transportation and commuting have contributed the most growth to this sector in 2022.
Trends for 2023
For 2023, we are facing similar challenges: fluctuating costs and balancing the ever-growing demand for fast, efficient delivery. These challenges will continue to shape fleet management in 2023.
Fuel costs played a pivotal role in price fluctuations in 2022. Fuel is a commodity that is subject to a quick rise and slow fall when impacted by adversary events. Gas prices peaked at around $6 per gallon nationally in 2022, and are now returning to prices we experienced at the beginning of this year.
A push for electric
Some fleet managers are ditching gas vehicles altogether, noting that electric vehicles are three to five times cheaper to drive per mile than their gas counterparts.
Electric vehicle sales hit an all-time high in 2022, surpassing $1 million in sales in September alone. As the electric grid grows and governmental policy expands, we expect electric vehicle sales to continue to grow in 2023. Check out our blog for in-depth, monthly EV news.
The demand for efficient delivery
For the past few years, consumers have not wavered in wanting quicker delivery, leaving some businesses struggling to keep up. An increase in promised two-day delivery windows has only left customers wanting more.
A 2019 Forbes article speculated on this challenge, stating that the “demand chain” would soon override the “supply chain.” This was certainly the case in 2022, and it will continue to encourage development of innovative solutions in 2023.
Delivery has a large impact on a customer’s impression of a business. To keep customers happy, some businesses are partnering with external companies to outsource fleet and delivery services.
Companies like Kroger, Target, and Big Lots have already utilized this strategy, partnering with Instacart and others to establish same-day grocery delivery.
In-house delivery & fleet expansion
While outsourcing delivery to a third-party company is sustainable for some, others are expanding to create in-house delivery and fleet management.
To push for an even greater sense of control, some businesses utilize telematics in their fleets. With GPS tracking and enhanced safety features, telematics is a no-brainer for any business. It allows for personalized delivery to customers while lowering maintenance and driver costs. Telematics will remain as a trend in fleet logistics in 2023.
The outlook of fleet expansion is so strong that many businesses are looking to create flexible fleets, or fleets utilizing a shared-economy approach. Denver-based company Fluid Truck is among the top competitors in this industry, allowing for convenient rental of EVs, cargo vans, box trucks and more.
Renting is proving to be one of the most cost-effective approaches since it allows businesses the flexibility to expand and contract their fleet based on the demand chain. Fluid Truck supports businesses with the latest telematics technology. Outsource and expand your fleet rapidly with Fluid Truck to make your 2023 goals a reality. Looking forward to another fantastic year!