Enterprise Fleet invests $100 million in tech - St. Louis Business Journal
St. Louis Business Journal
Enterprise Fleet invests $100 million in tech
Oct 16, 2015
You know Enterprise as the car rental giant it’s grown to become, but a $100 million investment into its Fleet Management business over the last few years has also turned it into one of the area’s largest technology operations.
That money is helping Fleet Management, a privately-held, full-service fleet management business owned by the Taylor family, build new technology to help companies and governments manage their vehicle fleets more efficiently — whether it’s alerts for oil changes or understanding the total cost of ownership for each vehicle — and when it’s time, selling those vehicles for a maximized return.
The technology, expected to be rolled out for customers in the next few months, should help boost sales, said Tom Chelew, vice president for Enterprise Fleet Management.
“It’s a game changer for us,” he said. “Our customers want more info and they want it in real time — not just about money, but how to take care of their cars or when is the right time to sell them.”
At the same time, Enterprise Fleet Management has tripled its IT staff, led, in part, by Vice President of Information Technology Mark Adams, to nearly 150 IT workers. The company expects to hire another 150 employees over the next year, most of whom will be part of Enterprise’s promote-from-within program.
Fleet Management specializes in companies with mid-sized fleets — anywhere from 20 to 300 vehicles — with smaller fleet operators of particular interest, since they’re underserved. There, Enterprise can leverage its massive buying power to help lease or buy and sell vehicles, he said.
“Enterprise buys and sells better than anybody I know and that’s the art of the game,” said car rental industry analyst Neil Abrams, president of Abrams Consulting Group. “You can make money on leases or renting, but if you’re not buying and selling right, you can get into a lot of trouble.”
Fleet Management works with many local governments, such as the city of Lake Oswego, Oregon, which recently approved a $325,227 contract with Enterprise Fleet Management to maintain and service part of the city’s vehicle fleet; or Columbia County in New York, which in August approved a contract with Enterprise Fleet Management to move to a leased vehicle fleet to reduce maintenance costs.
Government Fleet Magazine, which covers government fleet spending, found local government fleet budgets continue to increase, with the average city spending $2.7 million a year, while the average county spends $6.5 million annually.
MarketsandMarkets projects the global fleet management industry to grow from $8.03 billion this year to more than $22.3 billion by 2020, with the North American market accounting for the largest segment because of technological advancement and early adoption of the Internet of Things.
Enterprise Holdings, which is separate from Fleet Management, has more than 2,000 IT workers, reported revenue of $17.8 billion in 2014, up 8.5 percent from 2013.