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Risks
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Finding the
appropriate business model to capitalize on real-time dynamic pricing may not
be immediately apparent and require trial and error. A rental operator should analyze the
tradeoff between the expense of operating a Core System versus any change in
revenue or market share that would result.
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Other
Considerations
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Owner/Operator
versus Participator
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Participating in a
Core System run by others will allow the company to track its vehicles and
sell position, trajectory and weather data collected from them. Data aggregators and businesses selling
traffic flow, routing and weather information would be buyers. This would be an additional revenue stream
for the company. It could also buy
more comprehensive traffic and weather information from these same sources if
that would assist operations.
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Operating a Core
System, a rental company can undertake dynamic pricing, single billing,
custom mayday alerting, remote vehicle diagnosis, and fully automated
wireless check in.
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Data distribution
function of the company’s Core can provide proprietary processing of the data
from special applications running on its own vehicles to accomplish these
functions.
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Owning/operating
would also guarantee the availability of the Core for regional or national
coverage rather than relying on many State and local Core Systems.
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Outstanding
Questions
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What will it take to
quantify the competitive advantage of owning a Core System?
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Should
vehicle-generated data be limited to what is in the BSM?
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