Fleet management and vehicle leasing conglomerate Ryder System is rolling out what it calls an “asset sharing platform” called COOP by Ryder (with “COOP” pronounced “koop”) that it believes is the first of its kind for commercial vehicles.
Ryder said its new digital platform offers businesses the opportunity to list and rent underutilized commercial vehicles within a network of trusted peers. Per its telematics data, Ryder estimates that of the over eight million commercial vehicles on U.S. roads today, about 25% regularly sit idle for more than one day a week, excluding weekends.
Thus COOP will allow fleet owners to generate revenue from such equipment while providing a new source of rental vehicles for businesses seeking additional capacity. And that revenue could be significant/ For example, per Ryder’s estimates, a 26-ft. straight truck traveling 100 miles per day can generate lenders up to $3,300 per month.
The company said COOP began with an initial market release in January in the Atlanta metro area with a group of more than 100 fleet owners and, based on that pilot test, Ryder will now fully roll out COOPto the Atlanta market in April, with several other major markets anticipated to be added in 2019.
“We are excited to launch this new platform that makes trucks shareable at a time when the sharing economy is driving innovation in many industries,” noted Robert Sanchez, Ryder’s chairman and CEO.
“Seasonal and cyclical truck shortages, coupled with fleets’ excess and unused capacity, demonstrates the benefit of having a technology like COOP available in the marketplace,” he added. “COOP represents one of several strategic investments we are making to leverage technology and capitalize on disruptions our industry will see over the next five to 10 years.”
Ryder said COOP works this way: Fleet owners list their vehicles on the digital platform, set vehicle availability for idle periods, and receive automated payments via the network of “trusted” businesses. In turn, businesses seeking vehicles can search the platform by location for available vehicles, including vans, trucks, tractors, and trailers, then rent them from the listed location, Ryder added.
The company stressed that all COOP users are vetted to ensure they comply with safety and reliability standards, with payment automated and immediate upon the return of the vehicle. Each transaction is covered by physical damage insurance and a $1 million liability policy and includes 24/7 roadside assistance, Ryder added, and at the close of each transaction, COOP lenders and borrowers will have the opportunity to rate one another. That should help ensure accountability and trust among users, the company noted..
Currently, lenders and borrowers are connecting by phone or via email, but as of May, Ryder said they will have the additional option of chatting with one another via the Coop.com “chat feature” that will enable visitors to chat with a customer service representative
COOP is currently a mobile-optimized web site, the company added, and is anticipated to be available as a mobile application to both Android and Apple iOS users in the fourth quarter of 2018.