Periodic Reporting for period 1 - SmarTrip (SMARt platform to optimise TRIP management)
Reporting period: 2016-08-01 to 2016-11-30
Business mobility/travel management has always implied a challenge for enterprises working at international level but nowadays it has become a must even for small domestic firms: travel for business grew in Europe at a higher rate than expected in 2015. Many companies externalize the travel management services to travel agencies, car rental firms, etc. but frequently need an internal team to manage the additional documentation and data generated in these processes. For companies whose employees travel by road fleet management constitutes a complex task to deal with, due to the different nature of the actors involved (customer, fleet owner, maintenance service, car rental, etc.), international compliance in some cases or the fact that vehicles are frequently used for professional and personal trips simultaneously. Current regulations do not facilitate this management either: enterprises may be asked for evidence of their trips -fuel consumption, mileage and costs- in financial and tax audits and, in case of noncompliance, they should face important fines (up to 23000€/per driver). Accountancy and Sustainability departments claim urgently for easy-to-use tools focused on the end user to simplify the management of mileage expenses claims, fuel consumption bills and tax and CO2 emission reports.
Smartrip is an innovative Business-to-Business and Business-to-Customer service which consists of an intelligent fleet management system for light vehicles based on a self-install GPS device and cloud-based software. Our aim is to help companies simplify travel management processes, reduce mileage related vehicle fleet costs up to 35% and obtain a higher efficiency of the core business areas; concerning individual drivers, Smartrip removes the difficulty of having to record and prove business journeys and offers them an intuitive tool carefully designed for the best user experience.
The positive results obtained in these activities have confirmed the technical and commercial viability of Smartrip. Our strong capabilities and engagement have convinced us to continue with Smartrip’s development. The possibility of being again funded by the EC with a Phase 2 project remains as our preferable option because a) we can face the 30% needed for the project with our own funds (estimated Phase 2 total budget: ~1,8M€) and b) the timeframe (24 months) seems realistic for the essential activities: develop the SW and HW, test them with potential end users and apply simultaneously a commercial and communication strategy to ensure a successful market launch of Smartrip’s new service.
SmarTrip is anticipated to be suitable to 87% of AutoTrip’s existing 6 million customers, and is expected to boost new customer acquisitions by a minimum of 50%. This translates into over 1,000 sizable fleets (200 vehicles +) optimized, and an IRR over 70%, incorporating iterative development costs (see section 2 for detailed calculations). We foresee a business opportunity of near €5 million of revenue by the end of year 3, plus the creation of 14 job positions.