Advancements in fleet technology have increased significantly in recent years. Medium- and heavy-duty vehicle electrification has provided fleet operators with new options to reduce overall operating costs, including fuel costs. Additionally, autonomous vehicle technology has also emerged to address labor shortages for fleet owners who need to move goods while facing an aging workforce retiring out of the industry.
The concurrent rise of electrified fleet vehicles and autonomous driving technology have emerged to offer solutions to these common concerns of fleet owners and operators. Yet, with the buzz surrounding each, fleet executives may be wondering which technology is worth investing in sooner vs. later: autonomous driving technology or electric vehicles?
Recent Advancements in Fleet Technology
Driverless fleets combat workforce woes due to labor shortages
In the United States, autonomous driving technology companies have made significant advancements in successfully, and safely, moving shipments with driverless vehicles. Just recently, one company has launched an autonomous trucking service to make deliveries on predetermined routes in Texas.
The autonomous driving technology industry has made strides in addressing a common concern for fleet and freight operators regarding a shrinking workforce. According to a recent report, the U.S. has a staffing shortage of an estimated 24,000 professional truck drivers. Ramping up technologies that can address this gap may be a necessary endeavor to keep vehicles on the road.
Autonomous vehicles have also been shown to address the concerns around rising fuel costs. There have been estimates that self-driving diesel trucks could cut fuel use 13% to 32% compared to traditional diesel trucks. As the oil and gas industry continues to become more volatile, savings on diesel fuel are an appealing benefit of autonomous technology.
Electric fleets shield against rising energy costs and introduce new revenue streams
On the electrification side, advancements in smart EV charging and energy management systems have allowed fleet owners to address the concerns of rising fuel prices and introduce opportunities for new revenue streams. With EVs being 9% cheaper per mile than their gas-powered counterparts, the savings potential for fleet operators to consider are vast with the hundreds to thousands of vehicles potentially operating under one business.
The maturation of bi-directional charging, or vehicle-to-grid (V2G) capabilities, continues to be an area fleet operators are exploring. The benefits of V2G technology allow fleet operators to generate new revenue streams, while reducing on-site energy costs. Taking advantage of V2G is made possible with smart EV charging and energy management platforms. The software allows fleet operators to participate in demand response opportunities by deferring charging to late night, while monitoring energy in real-time to each charger and vehicle.
Where to Prioritize Investments to Future-proof your Fleet? Electrification.
The benefits of fleet electrification, and how quickly those benefits are scalable for fleets, make it the top choice when considering new technology investments. Electrification will deliver the ROI fleet operators are looking for, including:
- Addressing both fuel costs & energy costs
- Identifying new revenue streams
- Providing drivers with a seamless charging experience
Address both fuel costs & energy costs
As fuel costs continue to increase, electric vehicles have offered fleet owners cost saving benefits. Energy costs, however, have emerged as a potential hurdle to fleet electrification as electricity costs also continue to increase. The cost of energy will depend on the time of day. At peak charging times, electricity will have a higher price tag. Fleet owners can guard against peak pricing by charging fleets at specific times of day when energy costs are lower to minimize those costs. Smart EV charging and energy management software offer the ability to oversee optimal charging times. These platforms can optimize charging with smart utilization of the local grid, renewables, and local battery storage to offset energy costs.
For fleets arriving back at the charging depots, having access to advanced and automated energy management tools allows fleet operators to actively monitor and optimize the capacity of energy sources available and the activity of each charging station at the depot to ensure vehicles are fully charged when needed.
Identify new revenue streams
Smart energy management tools have allowed fleet owners to explore new revenue streams by exploring how they can sell their excess energy back to the grid. Many fleets have the option to participate in demand response opportunities and bid on flexibility markets to generate additional income.
As vehicle-to-grid (V2G) technology continues to mature, it will offer fleet owners more flexibility in these new revenue streams. By using the capabilities of bidirectional charging to utilize electric vehicle batteries as a distributed energy resource, it allows EVs to decarbonize the grid by balancing supply and demand throughout the day. Smart EV charging and energy management tools can ensure fleet operators balance energy use while participating in time-of use contracts.
Provide drivers with a seamless charging experience
Fleet drivers require a seamless charging experience wherever they go. In the wake of driver shortages, fleet owners cannot overlook the charging experience in the drivers’ daily schedule. Whether they’re charging at the depot, a public destination, or at their home, fleet owners need a solution to avoid the often timely monthly settlement with their drivers. This is where EV charging management solutions that feature flexible billing tools can streamline the process. For example, with RFID tokens, drivers can easily tap their card or use a mobile app to charge at public charging stations to directly bill back the charge session to the fleet. For home charging, the ability to use a billing engine can promptly compensate drivers for their energy costs. These features, combined with reliable and accessible chargers at the depot, ensure drivers have a positive experience.
The Final Word
The future of mobility offers fleet operators a myriad of technology solutions, but choosing the best options now requires a deeper look at both immediate and long-term impacts – and how those can be achieved at scale.
While autonomous technology is addressing a labor shortage in freight and fleet operations, the investment’s ability to scale may be impacted due to ongoing regulations. The National Highway Traffic Safety Administration (NHTSA) is considering a framework to maintain key safety standards nationwide, rather than a variety of state laws and regulations that are inconsistent across the U.S. Until then, adhering to various state-specific policies can hinder fleet operations.
Electric fleets offer the cost savings, driver engagement, and added revenue streams that are scalable in the immediate future. With an investment in fleet EVs, supported by the right EV charging and energy management software, fleet operators can take advantage of the immediate benefits while also reaching net-zero emissions goals.
