Ford profits from commercial and fleet sales - especially software subscriptions

[SC Maintenance]

Interesting business model. I may never own another Ford, but I might consider owning there stock. Big brother sounds lucrative

Synapsis:

"Ford Pro serves commercial customers with work-ready vehicles, service, software, charging, and financing to improve fleet operations. Over the past 3 years since its creation, it has become a multibillion-dollar success.

• Software subscriptions currently have a 12% attach rate, projected to grow to over 35% in the coming years, according to Bank of America analyst John Murphy.
• Ford also plans to increase its revenue from telematics and other services to $2,000 per vehicle annually, with 20% of Ford Pro's revenue expected to come from these services by 2026."

https://news.dealershipguy.com/p/fords-notsosecret-profitability-weapon

 

[andrew_j]

Software as service is massive profit if it catches on. Good for Ford on capturing this market with profitability.

 

[KrisZ]

Let it all crash and burn. Not sure why people are saying this is good. Sure, for making money for the faceless corporations, but overall it’s just pure garbage.
$2000 profit/vehicle/year in selling telemetry data? Are you kidding me? How is that good?

Talk about being treated as cattle.

 

[Pew]

I'm surprised it took them so long to catch onto fleet tracking software for a company that does a lot of fleet vehicles. Certainly makes it more convenient to a small-med business to have it all built-in and packaged into one instead of hoping a 3rd party fleet based tracking software works as easy.

 

[Pew]

Let it all crash and burn. Not sure why people are saying this is good. Sure, for making money for the faceless corporations, but overall it’s just pure garbage.
$2000 profit/vehicle/year in selling telemetry data? Are you kidding me? How is that good?

Talk about being treated as cattle.

Ford Pro is a commercial fleet tracking software so recorded telemetric data is a requirement.

 

[97prizm]

Interesting business model. I may never own another Ford, but I might consider owning there stock. Big brother sounds lucrative

Synapsis:

"Ford Pro serves commercial customers with work-ready vehicles, service, software, charging, and financing to improve fleet operations. Over the past 3 years since its creation, it has become a multibillion-dollar success.

• Software subscriptions currently have a 12% attach rate, projected to grow to over 35% in the coming years, according to Bank of America analyst John Murphy.
• Ford also plans to increase its revenue from telematics and other services to $2,000 per vehicle annually, with 20% of Ford Pro's revenue expected to come from these services by 2026."

https://news.dealershipguy.com/p/fords-notsosecret-profitability-weapon

I can't believe someone at Ford developed software that will capture you speeding then send it to law enforcement. Talk about an over reach of rights.

 

[SC Maintenance]

Ford Pro is a commercial fleet tracking software so recorded telemetric data is a requirement.

Its not required under a certain weight or a certain type of use not required - ie a repair technician in a one ton likely does not have to track. Still the employer wants it - maybe for employee tracking, maybe for maintenance, or billing, or whatever. ie its optional but often desired.

 

[SC Maintenance]

Let it all crash and burn. Not sure why people are saying this is good. Sure, for making money for the faceless corporations, but overall it’s just pure garbage.
$2000 profit/vehicle/year in selling telemetry data? Are you kidding me? How is that good?

Talk about being treated as cattle.

I was sort of surprised by that also. Telemetry is usually like $15 a month from places like Verizon and others for fleet use. I presume this keeps track of a lot more than what they do for whatever reason.

 

[andrew_j]

Let it all crash and burn. Not sure why people are saying this is good. Sure, for making money for the faceless corporations, but overall it’s just pure garbage.
$2000 profit/vehicle/year in selling telemetry data? Are you kidding me? How is that good?

Talk about being treated as cattle.

What are you scared off with this? They sell the data services to company who pays for it.

 

[IndyIan]

Let it all crash and burn. Not sure why people are saying this is good. Sure, for making money for the faceless corporations, but overall it’s just pure garbage.
$2000 profit/vehicle/year in selling telemetry data? Are you kidding me? How is that good?

Talk about being treated as cattle.

Its for monitoring staff locations, times, speeds, and vehicle maintenance. Our system was only really needed for one guy, but everyone got it installed. I forget how much our 3rd party tracking was 8 years ago, but I am thinking it was more like $4-500 per vehicle per year, but we did pay for the equipment install up front, but even that was like another $700 per vehicle. We had about 30 vehicles total...
Even then, with work smart phones, we debated just using a system that worked off them, but there's no theft recovery and potentially someone could just leave their phone somewhere and do some personal trips.
I don't see how Ford can sell anything for $2k/vehicle, but I guess they can somehow...

 

[Danno]

Its not required under a certain weight or a certain type of use not required - ie a repair technician in a one ton likely does not have to track. Still the employer wants it - maybe for employee tracking, maybe for maintenance, or billing, or whatever. ie its optional but often desired.

I ran a large fleet, 1400+ trucks in Canada, mostly Ford trucks. I headed up installing GPS units - Geotab brand, in 2015 to track truck movement, fuel consumption, idle times and excessive g forces. All for a weekly scorecard for the drivers. Save fuel, drive safer. Having this data from a factory install would have been a great option at the time.

 

[wag123]

Every corporation and business, large and small, is trying to get us on subscriptions and service contracts, even my dentist. It has become the most profitable business model to pursue.

 

[Pew]

I ran a large fleet, 1400+ trucks in Canada, mostly Ford trucks. I headed up installing GPS units - Geotab brand, in 2015 to track truck movement, fuel consumption, idle times and excessive g forces. All for a weekly scorecard for the drivers. Save fuel, drive safer. Having this data from a factory install would have been a great option at the time.

I think we use Geotab also for our fleet of ~12 pickups/cuvs. Whatever one we use, it is connected via the OBDII port and we've had some unsavory employees think they can outsmart us by unplugging the device and use the company vehicles for personal use. Little did they know that all the data between un/replug was still uploaded once the device was plugged back in and the GPS accurate to a few feet.

 

[zzyzzx]

This is for fleet vehicles and if I were a fleet manager I would want my fleet tracked and that information available to me.

 

[Mewbs]

Every corporation and business, large and small, is trying to get us on subscriptions and service contracts, even my dentist. It has become the most profitable business model to pursue.

Yep, even my local car wash is doing that too, 20 dollars per month for unlimited car washes*

 

[Danno]

I think we use Geotab also for our fleet of ~12 pickups/cuvs. Whatever one we use, it is connected via the OBDII port and we've had some unsavory employees think they can outsmart us by unplugging the device and use the company vehicles for personal use. Little did they know that all the data between un/replug was still uploaded once the device was plugged back in and the GPS accurate to a few feet.

Had that setup originally. Then went to a splitter Y connector OBD cord setup with the GEOTAB tucked hidden under the dash and the OBD in its normal spot, nothing to unplug or obvious. Too many unplugs happening otherwise.