Fleet tracking software: How to reduce costs with GPS fleet management for small businesses

For many small businesses, vehicles are their most important asset. However, according to the Verizon 2025 Fleet Technology Trends Report, they are also one of their costliest expenses, with 77% of businesses citing increasing fleet costs as their top challenge.¹ GPS fleet management for small business can help make your fleet management smarter, so you can reduce costs and maximize your investment.

How GPS fleet tracking software works

Small business fleet management software gives you the ability to have a near real-time, 24/7, 360° view of all your vehicles and drivers. There are three key components required for GPS-enabled fleet management for small business:

• GPS tracking device: Tracking devices use GPS to track location and speed, while dashcams help ensure seat belt usage, monitor driver behavior and provide driving event footage in case of an accident.
• Connectivity: A powerful 4G connection lets you capture data and video so you can engage drivers in near real-time, instead of after a shift or incident.
• Fleet tracking software: The right fleet management for small business solutions lets you manage your entire fleet from your PC, tablet or smartphone, keeping you connected to your fleet whether you're in the office or in the field.

The benefits of GPS fleet management for small business

GPS fleet management software lets you capture the data you need to make more intelligent decisions about everything from driver training and fleet maintenance to route design and vehicle allocation.

According to the Verizon 2025 Fleet Technology Trends Report, more than 47% of fleets that leverage a GPS tracking solution report a positive return on investment (ROI) in less than one year,² with 72% saying that they consider their GPS tracking solution extremely or very beneficial.³

Route optimization

Using GPS small business fleet management software, you can analyze the daily routes your drivers take to optimize their travel time. In addition, you can see driver location in near real-time, so you can reroute the closest driver to a last-minute job, rather than a driver who may be across town. Smart dispatching and accurate estimated arrival times (ETAs) can help improve customer service, satisfaction and retention.

Driver safety and training

In 2023, speeding killed 11,775 people in the U.S., while 3,275 people were killed in crashes involving distracted drivers. GPS fleet management software helps you identify drivers who tend to speed, so you can train them to drive more safely. In addition, artificial intelligence (AI) can analyze driver footage to identify unfastened seat belts and events like texting while driving or other distracted driving behaviors, so you can take specific corrective action faster.

How fleet management can help reduce costs

Seventy percent of businesses using fleet management solutions surveyed for the Verizon 2025 Fleet Technology Trends Report reported that the use of video helped them achieve their business goals by improving protection from false claims, while 42% saw reduced accident costs and 34% realized reduced insurance costs.⁴

Fuel consumption

To help you reduce your daily operating costs, you can use GPS fleet management software to monitor your fuel costs, which is often one of the largest costs for any vehicle-based business. According to the 2025 Fleet Technology Trends Report, businesses report an average fuel cost savings of 16%, thanks to their use of a GPS fleet tracking system.⁵ Fleet tracking software along with a fleet fuel card management system can help you monitor everything from gas-guzzling and high-speed driving to idle time, use of inefficient routes and potential fuel theft, giving you the data you need to identify the culprit behind high fuel costs. Not only can this data help you improve driver training and optimize routes, but it can also provide the justification you need to invest in more efficient electric or hybrid vehicles.

Labor costs

You can potentially reduce labor costs by 16% by monitoring driver usage and routes—ensuring that drivers complete their shifts without overtime.⁶ Analyzing driver performance can also help you identify safety training opportunities that may reduce accident costs by 22% through the mitigation of expensive lawsuits, lost employee time, vehicle downtime and higher insurance premiums.⁷

Preventive maintenance

Preventive maintenance can help ensure that your vehicles are serviced based on their actual usage, not just what is called for on the calendar. To reduce unexpected downtime, you can use GPS fleet management software along with diagnostic trouble code notifications to track vehicle mileage and provide maintenance before a vehicle breaks down, not after. Connected fleet technology can help manage maintenance costs, and potentially help you reduce such costs up to 16%.⁸

Trend analysis

Finally, small business fleet management solutions can help you better understand how your vehicles are actually being used. Often, you'll find that some vehicles are used more than others. Fleet management software can help you identify which vehicles are over or under-utilized, so you can identify the reason why. Is the truck stocked with better tools? Is the air conditioning broken? Does it have a flat tire that no one bothered to report? By understanding vehicle utilization, you can ensure the vehicles that get the most use are properly maintained while determining what you need to do to drive more revenue from underutilized vehicles. You may even discover you can reduce your lease, capital costs or insurance premiums by operating with fewer vehicles.

Verizon Connect helps you reduce your fleet costs by providing a 360° view of your vehicles and drivers in near real-time. With complete fleet visibility, you can uncover opportunities to increase productivity and efficiency, improve driver performance, reduce unexpected downtime and mitigate risk. Learn more about Verizon Connect.

The author of this content is a paid contributor for Verizon.