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How Telematics Is Used In Business

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Telematics is a term used for devices that combine both telecommunications with informatics.

The recording of information about objects such as vehicles is allowed using telematics as well as sending, receiving, and storing this data through telecommunication devices.

Using GPS devices and wireless data, a vehicle can be monitored, and data such as its location and getting route directions can be mapped.

Plus, it also allows for control of vehicles on the move. It monitors the vehicle’s behavior in terms of acceleration rate, speed, braking, fuel consumption, and even sending maintenance or collision alerts.

How Telematics Works

Using a GPS satellite, the vehicle’s position is provided to the device found in the vehicle. A wireless cellular connection allows the information to be transferred between the car and the telecommunications company.

With the hand of the telecommunications company, a line of communication is accessed between the vehicle and the securely hosted service center, enabling the transition of information from the secure hosted service to your computer via the internet. After that, the data can be accessed in real-time using a web browser.

The data collected by a small device installed in the vehicle allows the storage and transfer of information about the vehicle’s performance, condition, and usage.

Different types of telematics devices are used for various functions and benefits; however, the most accurate devices are hardwired as they offer tamper-proof information and a broader range of connectivity to remote devices.

Who Is Using Telematics

Businesses are already using this technology to monitor vehicles to improve safety and performance.

Courier Companies, Emergency Services, Taxis

Transport businesses keen to improve performance and productivity, including couriers, taxis, and emergency services, including the police, use telematics, e.g., it can even be used to track stolen cars.

Telematics devices can also be connected to other in-cab driver interfaces that allow drivers to receive jobs, record proof of delivery, and receive real-time feedback on their driving performance.

Using telematics, a driver can be connected to a passenger identifying their location and where they need to be driven to and providing safety for the passengers as the whole route is being recorded.

Vehicle Insurance Providers

Insurance companies can also make use of this technology as they will be able to monitor a driver’s behavior and have a detailed report on any situation that occurs and sell better insurance offers based on the driver’s habits.


Consumers can also use it for safety, e.g., if your car breaks down,  services like the AA can be alerted and send data on the car’s diagnostics.  Users can benefit even in forgetting the keys inside the vehicle. In this case, a quick phone call can get your vehicle unlocked.

How Telematics Is Improving Business

Here are just a few ways that telematics is improving business.


The data provided through GPS can help find and prevent safety risks. For example, monitoring driver habits and identifying drivers who speed, brake too harshly, or don’t wear seatbelts.

Besides the vehicle itself, telematics can also recognize possible problems with the car. Once the problem occurs, it automatically sends data to identify the problem instantly and get the help needed.


With telematics, the ability to check the status of each fleet or driver’s report at any time from any device is possible. Just by connecting to the internet, a fleet manager can access reports and be aware of any problems that occur without having to wait for a driver’s statement.


Tracking a vehicle can help avoid breaking down or the need for unforeseen repairs. This is because monitoring the vehicle’s behavior means that maintenance can be scheduled when the car needs it and therefore avoid car issues.

Customer experience

It can also be used to inform customers of the status of their packages resulting in an improved customer experience. It is also valuable for the business as it can send an alert in case of an emergency and help locate the vehicle.

Reduced fuel costs

As fuel consumption is one of the highest costs, detecting and reducing excessive fuel use is vital to a company’s overall efficiency.

Telematics allows this by identifying the best route possible and detecting unauthorized vehicle or equipment use, decreasing overall costs.

Summing Up

Technology is disrupting business in ways we’ve never imagined. 

Telematics is providing practical solutions to improving vehicle use and safety, and it’s likely it will become the norm in all types of transport in the not too distant future.