RPM Automotive Group Limited will introduce a new SaaS (Software as a Service) product through a partnership with fleet management technology provider WHG Telematics.
WHG supplies telematics, IoT, and technology solutions, including vehicle and asset tracking, fleet management, fatigue, and driver safety technology. It has 35 years of experience supplying technology solutions across several sectors.
This partnership positions RPM as Australia’s largest distributor of WHG products, offering an onboard technology-connected vehicle ecosystem for commercial fleet customers.
It introduces a new revenue stream for RPM, comprising recurring SaaS subscriptions, product sales, and servicing through installations and ongoing system calibration.
Implementation and training will begin in Q4FY24, with initial earnings estimates of up to $1 million in FY25.
This partnership provides RPM with access to all WHG products and services, with the addition of WHG as a development partner and specialist team with complete end-to-end hardware, software, design and development capabilities, allowing the RPM to respond to new market and industry requirements and trends.
With the high adoption rate of technology in Australia, the fast-track adoption of mandatory and regulatory telematics, and industry-driven towards the modernisation of the Australian truck fleet, RPM is positioned through this partnership to expand its portfolio of services, introducing technology and innovation as a new market vertical.
As a result, the partnership is expected to scale and develop over the next 36 months, extending nationally across the RPM network and becoming a significant contributor to the Company’s future earnings.
The range includes WHG’s certified technology products: Smart On-Board Mass (OBM) system, telematics, fatigue management, video telematics, asset tracking, IoT solution and fleet monitoring services, improving fleet management and safety, efficiency, and compliance.
With more than 1,000,000 heavy commercial vehicles registered in Australia, comprising 125,000 Prime Movers, 310,000 Trailers, 440,000 Rigid Trucks, and 125,000 Buses, the partnership provides RPM with a unique value proposition.
“This is an exciting time for the company as we introduce cutting-edge technology and a new style of product and service across our network, which includes SaaS recurring revenue. The introduction is timely, with State-based legislation driving the adoption of safety and compliance regulations for heavy commercial fleet operators nationwide being introduced in 2024. As such, we are well-positioned to provide our commercial fleet customers with certified technology solutions that meet all compliance requirements and improve safety for all road stakeholders,” said RPM Automotive Group chief executive Guy Nicholls.
“I believe RPM is well placed to enter this new technology phase of growth that will provide additional recurring revenue streams and a substantial competitive advantage.”
“The RPM Group was identified as a leader that plugs directly into the heart of Australian trucking. This partnership will unlock fleet customers’ benefits and open a new technology-based recurring revenue stream for RPM. Our collaboration with RPM is exciting, and we expect significant growth as the partnership matures,” said WHG Australia director and chief executive Dylan Hartley.
“The average age of a truck in Australia is over 14 years, and as an industry, we are responsible for supporting operators by responding to industry safety, regulatory and compliance changes, making technology accessible and affordable as a retrofit to the Australian truck fleet.”
