3 challenges that fleet managers face daily

A total of 514 fleet managers, mobility professionals and business owners participated in the Verizon Connect 2025 Fleet Technology Trends survey.  Based on their answers, we were able to gain valuable insights into the difference it makes when a business implements fleet management technologies. The participants also revealed which challenges they face daily when trying to optimise fleet operations, decrease fleet costs, and end up with a healthy bottom line.

Challenge #1: Increased costs

Companies that require vehicles to carry out their operations have to deal with a number of direct and indirect costs (1) that influence their profitability.

According to the main road safety observatories, transport costs include (2):

• Vehicle depreciation: Company vehicles begin to lose value as soon as they are used. The value goes down over time with the wear and tear of everyday use until the sum of the depreciated amounts reaches the acquisition value of the vehicle.
• Vehicle financing: Refers to vehicle payment no matter whether the vehicle is bought, rented or leased.
• Driving personnel: Salaries of those that drive the company vehicles.
• Insurance: To protect vehicles against theft, accidents, adverse weather, etc.
• Tax costs: Largely regulatory taxes established in each country.

The mileage costs (3) should also not be forgotten. The following are also direct costs (4) for company vehicles:

• Fuel: Mostly diesel, petrol and electric. These prices usually fluctuate depending on the current economic conditions.
• Consumption of urea solution: This fluid is usually added to vehicles after every 10,000 to 15,000 kilometres. Its purpose is to reduce the amount of nitrogen oxide (NOx) being released into the environment.
• Tyres: Essential parts of the vehicle which are exposed to greater wear and tear than other vehicle components.
• Maintenance: Periodic maintenance required to keep fleet vehicles in optimal condition for use (oil changes, filters, brakes, etc.).
• Repairs: Costs associated with repairs that arise unexpectedly and in between scheduled maintenance appointments.
• Per diems: Daily allowance payment for fleet drivers.
• Tolls: Costs for using highways or stretches of road that require payment to use them.

While time costs usually remain fixed, mileage costs can vary depending on different variables. These include higher fuel prices and poor vehicle maintenance management, which can lead to costly repairs.

Poor route planning can also result in increased daily operational costs if it means the vehicle has to cover more kilometres than necessary.

According to the 2025 Fleet Technology Trends survey, more fleet managers have been able to decrease costs in strategic business areas by implementing a fleet management solution. Cost savings have a positive impact on business profitability and become a strategic KPI for fleet managers.

Download the Fleet Technology Trends Report in Australia 2025 to learn more about the top 10 challenges that fleet managers face every day and how fleet management can help businesses like yours.

Challenge #2 Fuel

Due to the state of the global economy, the price of fuel continues to fluctuate massively. Fuel is one of the most important operating costs and has a major impact on the profitability of any company that relies on vehicles.

In order to reduce fuel consumption, it is crucial to know how much fuel each vehicle is using. Fleet management technology can help reduce fuel costs by providing you with reports such as:

• Fuel efficiency report - Measures a vehicle’s fuel efficiency by comparing fuel purchases with speeding, idling, and harsh driving events.
• Fuel purchased report - Breakdown of fuel purchases for each vehicle.
• Lost fuel report - Shows if a vehicle was not at the fuel pump when its assigned fuel card was used, or where a fuel purchase has exceeded the vehicle’s tank capacity.
• Carbon footprint report - Measures a vehicle’s carbon footprint.

The information collected lets you see how much fuel each vehicle consumes and helps you identify areas for improvement. This can help your team drive in a more efficient way, reducing fuel consumption.

According to the 2025 Fleet Technology Trends survey, 46% of businesses have managed to lower their fuel consumption since implementing a GPS fleet management solution. 

Download the Fleet Technology Trends Report in Australia to learn more about the goals achieved by businesses since implementing a GPS fleet management solution and how this technology can help businesses like yours.

Challenge #3 Safety

Keeping your team safe is top priority for any fleet manager or business owner. Promoting safe driving behaviour is paramount since bad driving increases the risk of accidents and leads to higher fuel consumption and increased vehicle wear and tear.

Driving safely is essential for road safety and reducing your risk of being in a crash (5). According to the Australian Government “around 1,200 people are killed each year on Australia’s roads and about 40,000 are seriously injured. Even one death on our roads is one too many” (6).

In terms of safety management, GPS fleet management technology monitors driving behaviour and alerts the fleet manager when bad practices are detected such as sudden braking, speeding, or engine idling. These can all put the safety of the team and vehicles at risk as well as waste fuel. Here are some of the reports and insights that our fleet management solution can provide you with:

• Speeding report - Speeding violations over specified speed limits.
• Driving style summary report - Summary of harsh driving violations. Includes hard braking, cornering, and quick starts.
• Harsh driving incident report - Breakdown of harsh driving violations. Includes hard braking, cornering, and quick starts.
• Exception report - Breakdown of driver violations such as excessive idling, out of hours driving, and unauthorised stops in a given location.
• CANbus driving style summary report - Summary of fuel consumption, distance travelled, engine hours, and harsh driving.

According to the 2025 Fleet Technology Trends survey, 26% of respondents improved fleet safety and GPS tracking users were able to reduce accidents by 14%.

Download the 2025 Fleet Technology Trends Report in Australia  to learn more about the top 10 challenges that fleet managers face every day and how fleet management can help businesses like yours.

Discover more fleet management technology trends to advance your fleet

The 2025 Fleet Technology Trends Report provides potential insights from fleet managers and mobility experts that can help optimise fleet operations, decrease fleet costs and contribute to a healthy bottom line. Download the new 2025 Fleet Technology Trends Report in Australia.

Sources:

• (1-2-3-4) MITMA
• (5) https://www.nsw.gov.au/driving-boating-and-transport/roads-safety-and-rules/safe-driving
• (6)https://www.roadsafety.gov.au/