The Complete Guide to Vehicle Tracking Solution [Benefits+Features+Costs]

Allied Market Research, a top market research and advisory company, has forecasted that global vehicle tracking systems market size will reach about $15 billion by 2025. How? Well, look around. Bicycles, a fleet of vehicles, airplanes, or submarines- GPS technology has not left anything untouched. You can track your vehicles in real-time, on a 5-inch screen that you also play games on. Managing fleet? Have logistics business? A business that requires fleet management or vehicle tracking solution? This guide is for you.

Being a leading software and mobile app development company, we have developed over 50 fleet management and tracking solutions like Baloora– school bus tracking app and One8 transport management system. After receiving multiple inquiries about developing software for tracking vehicles, we decided to write this blog. You will read about how different industries benefit from such fleet management software, important features, and cost to develop a fleet management solution.

Which Industries Need a Vehicle Tracking Solution?

If someone told you two decades ago, that you would be using GPS for tracking vehicles on your phone, you would not have believed it. Today, almost every industry that needs fleet tracking solutions can do it on their laptop or even their phone.

Many industries need vehicle tracking solutions or truck dispatch solutions, however, we will talk about a few of them in this section. This will give you an idea of how your business can utilize a GPS fleet management solution.


1. Logistics
The most crucial aspect of the Logistics business is that the cargo should reach the destination on time. The fleet managers do not have to worry about it if they have the app or cloud-based fleet tracking solutions. A vehicle tracking solution helps them to see if their trucks are on the right route and schedule. They can easily get alerted in case of any mishaps or unexpected situations. This helps dispatchers to take a step at very short notice.

2. Food delivery
Whether it is the restaurants, food delivery services, or catering services, real-time vehicle tracking is important. This helps the owners as well as the customers to know if the food will be delivered at the right place at the right time or not. We have developed Glovo, the most downloaded food and grocery delivery app in Spain with a real-time location tracking feature.

3. Construction
This industry requires heavy machinery and expensive equipment. It becomes extremely important to deliver construction material on time and that too safely. This is where the role of fleet management solution comes in. Such fleet tracking solutions help fleet managers in keeping a record of the truck’s current location and also give an estimated time of arrival at the destination. There are also construction delivery apps that use real-time tracking and might need GPS fleet tracking software or tracking devices.

4. Cab Aggregators and Vehicle Rentals
Vehicle rentals need to manage their fleet in order to keep their vehicles and drivers safe. Cab aggregators like Uber also use GPS technology so that the customers know and share their live-location for their own safety. Cab aggregators and vehicle rentals use cloud-based fleet management solutions extensively to keep a check on their vehicles and mobile workforce. They also use such a system to improve customer service as customers need to know when their rental will arrive and to see the ETA to reach their destination.

5. Package Delivery
Just like food delivery, package delivery, movers and packers startups are also heavily investing in mobile apps or websites with a feature of the delivery status. This helps the customer as well the business owner to know where the package has reached and how long it will take to reach the destination. We have developed a fair share of package delivery apps like Jabrool and Ninja Delivery. These apps use a GPS fleet tracking solutions so that the admins, as well as the customers, know about the status of their parcels.

In fact, you can also grow your delivery business using route planning apps along with vehicle tracking apps.

6. Educational Institutes
Parents and school administrators are very concerned about the safety of the students. This is why many schools have school bus tracking apps. This helps the parents and school administrators to keep track of the students on the bus. We developed Baloora- a school bus tracking app with GPS technology. The parents and school admins can be at peace of mind as they know where the students are. In fact, we also developed a feature for the bus crew members or the mobile workforce to record the attendance of the students as they board or board off the school bus.

7. Pharmaceuticals
When it comes to transporting pharmaceuticals, the temperature and time matter a lot. There might be many biological agents in the shipment that might get destroyed at a certain temperature. The trucks need to be managed in such a way they reach on time without losing any shipment. Vehicle tracking and driver safety, are easily managed with such a solution. You can also check on biohazards and rash driving with advanced features on your solution.

Now, the question comes- why would you use a vehicle tracking system for your business? Why fleet managers need it? These benefits will answer your question.

What are the Benefits of Vehicle Tracking Solution?


1. Reduction in Fuel Cost
Excessive fuel costs have been an issue for every industry dealing with transport or delivery. You can reduce your overall fuel cost if you have a fleet tracking app or software. A vehicle tracking solution helps in optimizing the route for every shipment or delivery trip. This saves fuel consumption for each trip, even with multiple stops. The cost saving for each trip adds up and helps reduce fuel costs to a great extent.

2. Fleet Management
You might have faced delayed shipments or shipment failures due to various reasons that lead to mismanagement of the fleet. GPS fleet tracking solutions also manage the fleet. You can keep a log of vehicle use and driver behavior. You can also detect if anything improper is happening on the route like de routing or failure in making shipments due to vehicle issues.

3. Improvement in Vehicle Health
You might face vehicle breakdowns or other issues with the vehicles. Vehicle maintenance and health play an important role in the transport business. Overused or underused vehicles, both can have a negative impact on the overall supply chain. You can track if you have been using the vehicle excessively and reduce its use. To improve vehicle maintenance or decrease sudden vehicle breakdowns, GPS vehicle tracking software can be used.

4. Driver Safety and Behaviour
Manual errors lead to disasters on roads. Many times, drivers do not follow the safety rules and precautions. You may lose on shipments due to such incidents. You can also get driver information using such a fleet tracking solution. Fleet managers can analyze driver performance and ensure better driving practices. This leads to fewer accidents as rash or negligent driving is minimized.

5. Reduction in Paperwork
If you’re still managing your data using excel sheets or paper, it is time to change. These old school methods are prone to manual errors. You don’t have to manually enter details on excel sheets or on paper. A lot of details about the goods and delivery status are automatically updated in the app. This reduces labor, paperwork, the time required, and errors in data entry.

Let’s, now, see which are the key features that make up GPS fleet tracking solutions.

Which are the Important Features of a Vehicle Tracking Solution?


1. Real-time Location
A fleet management software must have real-time GPS tracking to track fleet vehicles on a map. Most systems typically integrate Google Maps or Apple Maps. This feature helps in the real-time tracking of fleet operations. You can find out about the status of each and every vehicle in your asset tracking system.

2. Custom Locations
The drivers or admin can set locations (pick and drop off locations) to find the perfect route using route optimization software. You will find the optimized route between multiple locations that will help you make deliveries smoothly. You can also set a location by pinning it directly on the map.

3. Driving History
Driving history can help you keep a record of all the vehicles, drivers, and deliveries in one place. You can easily retrieve any data about previous business shipments using this feature of an app. Fleet management solutions help improve driver behavior as you can learn about them with the data in history.

4. Fleet Summary Report
This advanced feature can provide entire fleet reports along with graphs and charts. You can check the activation status of an individual vehicle or an entire fleet altogether. The report consists of route details, pickups, dropoffs, fuel consumption, ongoing, completed, and scheduled deliveries.

5. Notification
You will receive alerts or notifications when a driver reaches the designated dropoff or starts the journey, or when the vehicle wanders off to the wrong route. You can also set up notifications for speeding, or rash driving if you want. Notifications help you to stay in the loop of the everyday activities of drivers and vehicles.

6. In-app Chat
This feature helps you to stay connected with your drivers on the go. If you or the customer wants to send some instructions to the driver, they can just send a message to him using the in-app chat functionality. This feature decreases the communication gap between all the parties involved in the process.

Want to Develop a Vehicle Tracking Solution?

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Difference Between Custom and Ready-made Vehicle Tracking Solution

You will find a lot ready-made vehicle tracking solutions in the market but if you own a business that deals with transport on a daily basis, you should go for custom solutions. In order to explain the difference, we have an easily scannable table for you.

Custom Vehicle Tracking SolutionReady-made Vehicle Tracking Solution
  • Designed keeping all your business needs in mind
  • Caters to all your transport requirements
  • It is a one-time investment, no multiple payments
  • It is more affordable in the longer run
  • You can easily make changes in your custom system
  • It has general features that are created for businesses in general
  • It might be missing some features that you need
  • You have to buy monthly or annual subscriptions
  • You need to pay subscription charges till you use the product
  • Ready-made solutions cannot be customized according to your wish

How Much Does It Cost to Develop an App for Vehicle Tracking?

There are various factors that determine the cost of developing fleet management solutions. The hourly charges of the developer, number, and complexity of the features to be included, platform (Android, iOS, Web)- everything makes up the cost of fleet management solutions.

We use a simple formula that you can use to calculate the average cost of a vehicle tracking solution:

Developer’s Hourly Charge X Time Taken to Develop the Platform = Total Development Charge

Here is a table that has all the key features of fleet management solutions along with their development hours:

ComponentName of FeatureTime Taken for Development
Web Dashboard (Admin Panel)Dashboard Map View62
Notifications Management10
Activity Logs Management8
Dashboard – Multiple Customers & Vehicle Management8
Route Management18
Edit Route4
Add New Route6
Automatic Route Definition20
Add New Vehicle4
Vehicle Management (Activity and Location)9
Customer Management18
Google Maps Integration8
Database Architecture19
Web Services Development110
Android AppLogin – Phone number (OTP verification)2
Landing Screen – View Route (Map view)18
Turn by turn navigation view11
‘Start the Trip’ & ‘End the Trip’ options with conformation6
Add Pickup & Drop off locations6
Google Maps Integration8
iOS AppSame as Android58

If you create an app with the above features only, it will take around 429 hours to develop a vehicle tracking app. Suppose an app development company charges $40 per hour then according to the formula, $40 X 429= $17160. The average cost of developing an app or vehicle tracking solution is around $17000.

You can include a lot of more features like Speed Data analysis, Scheduling deliveries, Calendar view of driver’s schedule, and managing drivers into your white label vehicle tracking solution. These will also add to your cost.

Want to Develop a Vehicle Tracking Solution?

Get your free consultation now.

Finally, we will answer some of the most commonly asked questions.

Frequently Asked Questions

Am I allowed to track my company vehicles?

Yes, as you are the owner of the company and also the owner of your vehicles, you have full right to track them. An employer is not violating any law by tracking the location of a company-owned vehicle, especially used by its employees for official use. This is because the employer or the vehicle’s owner consents to the tracking. There are certain countries with different laws about tracking employees while using the company’s vehicle, but it is completely in code if you want to track your delivery vehicles.

How does the vehicle tracking system work?

The vehicle or fleet tracking system leverages Global Positioning System (GPS) to provide the exact location data. The GPS has two key components – GPS Transmitter (GPS Satellite) and GPS Receiver (GPS Device).

As you know, there are multiple GPS satellites orbiting the planet earth and they are continuously transmitting their respective locations at regular intervals via signals.  The GPS receiver computes its distance from the satellite according to the speed and time it took for the signal to reach it. Data from multiple satellites are combined and the exact data on location, vehicle speed, time, and direction is calculated.

How can I make my own GPS tracking software?

There are simple steps that you need to follow to develop your own fleet tracking system.

  • Step1: Do research on what kind of software application you require and the kind of features you want in it
  • Step2: Carry out thorough market research and analyze different applications available in the market
  • Step3: Contact us and we will give you a free quote for your project
  • Step4: Discuss project management and budget details with us
  • Step5: We will start developing your project and complete it with all the required features and functionalities

Which are the best GPS tracking apps?

Below are some of the best GPS tracking apps

  • Google Maps
  • Waze
  • Geo Tracker
  • Safe
  • GPS Route Finder


We now hope that the data in the blog has been helpful for you in understanding vehicle tracking solutions. If you have any queries about developing your own vehicle tracking solution or hiring iPhone developers for your project, feel free to contact us. We shall also provide a free of cost consultation with our experts.

We are a leading mobile app and software development company. We have developed over 3500 software projects for our clients worldwide. We have developed various applications that use GPS technology like 40+ on-demand delivery apps like Glovo, and Lacy, which is an alcohol delivery app and Multi-Route Planner app that optimizes routes for multiple pickups and drop-off locations.

Author Bio
Bhaval Patel
Bhaval Patel
Designation: Director (Operations)

Bhaval Patel is the Director (Operations) at Space-O Technologies. He has over 20 years of experience in business management and sales. He has expertise in taxi booking app solutions and on-demand applications. Under his guidance, Space-O has developed 50+ Uber-like taxi apps on both iOS and Android platforms.