#BizTrends2025: Smart telematics use can mitigate e-commerce growth risks
South Africa’s online retail market has been on a consistent upward trend recently, fast-tracked by the post-covid remote working. Recent figures revealed that as recently as 2023, 76% of the population used the Internet, predicted to grow to 98% by 2029.
At the same time, the number of e-commerce users is expected to reach 21,5 million users in 2029, from 11,7 million in 2025. This will mean doubling (or more) of parcels being transported across the country’s road network, increasing traffic volumes and the accompanying risk of road crashes and incidents.
Drivers, vehicles and goods will thus be exposed to an array of external conditions, like congestion, road works disturbances, social unrest, protest violence and public events. To limit their insurance liability and costs, transport operators will increasingly rely on smart mobility and telematics systems to manage their fleets.
Evolution of fleet telematics
Telematics systems are designed to track and optimise fleet deployment through live route mapping, driver communications and real-time vehicle diagnostics.
With South African municipal law enforcement increasing their presence and visibility, they are warning stricter measures for motorists caught with excessive defects in a new three-strikes rule.
As telematics evolves, they will mature beyond simply warning drivers of upcoming police roadblocks that could cause delays. These tools will increasingly be integrated with data from local law enforcement data, to inform a bigger picture of the operational environment.
Local bylaw changes, new vehicle limitations and upcoming events (like cycling races, public marches, etc.) will be more quickly identified and processed into automated planning platforms.
For instance, changing the dates of delivery in response to fresh reports, with prior communication with recipients, will limit risk while saving on overall time and fuel consumption.
With authorities knowing more about these trends, they can also be empowered to make the roads safer, even as volumes of vehicles increase.
Holistic smart data
Not only will telematics enhance road safety, it will also support road infrastructure sustainability. By using rich data from multiple sources, operators will ensure that vehicles are not on the roads for longer than they need to be, or on the wrong roads to begin with.
By also ensuring that certain vehicles are on the roads at the right times, they can reduce the overall burden on the road quality over the long term.
This in turn reduces the need for constant road works, which frees up more capacity, another virtuous cycle. As commercial transport operators prepare for the inevitable increase in load volumes, they should begin shifting from a functionality (or device) mentality to a data intelligence perspective.
