In the fleet management industry, privately owned, JSE-listed players and the fleet management divisions of the major commercial banks compete for market share in a market where the major customer segments – car rentals, government, companies and couriers – have been severely affected by the coronavirus lockdown and weak economic growth. These factors may lead to a reduction in fleets.
The operating environment in the past two years was characterised by low consumer confidence, declining vehicle sales and a lengthening vehicle replacement cycle. Role players expect slow growth in future, driven by a decrease in demand as outsourcing to individuals by e-commerce traders and ride-hailing companies persists. Since June 2020 when the lockdown rules were relaxed and e-commerce resumed, the demand for courier services increased to the extent that there was a shortage of delivery vehicles, but not all couriers have their own fleets.
State-owned Fleet Management
Government is involved in the industry through the Gauteng Department of Roads and Transport’s vehicle leasing and fleet management services business trading as G-Fleet Management, with over 420,000 vehicles in 2019, and Government Motor Transport Western Cape, that provides fleet management services to provincial and national government departments and had a fleet of almost 6,000 vehicles in 2019.
This report on Fleet Management includes information on the size and state of the sector and major influencing factors including the effects of coronavirus, economic factors and corporate actions and developments. There are comprehensive profiles of 34 companies including players in the banking sector such as Absa Vehicle Management Solutions, Bidvest Bank and First National Bank’s FNB Fleet Services, privately-owned and JSE-listed players including Eqstra (enX) and Fleet Africa (Super Group), Motus Corporation, Dikala Group and telematics players such as Cartrack, MiX Telematics, Ctrack and Netstar.