ERD - ERoad. (Transport sector technology)

[BlackPeter]

Really like this company, and have done very nicely out of the recent rise in share price however, I do wonder about the long term future of ERD.

I know that sometimes negative comments go down like a waxed anvil on this forum, but if I’ve thought of it, others who are far smarter than me will be thinking it too…

First of all, there’s the ubiquitous installation of internet in every new car. Correct me if I’m wrong, but doesn’t this allow new cars to be easily located if they are stolen? I’ve also heard that software in a Benz can now choose the right gear for the next bend by referencing your position with your map position. Then there was the thought that Google would develop into a self drive car manufacturer, I don’t think this will happen but it shows how the internet is already an integral part of every new car or truck.

On this internet/car theme, and bringing out my crystal ball, lets throw mixed reality into the errr mix. This is where software scans your immediate environment and overlays information on it. I can just imagine driving down the road, and each window of your car will have a heads up display showing adverts and sale specials overlaying the shops you are passing, a marketers dream. The tech is all there, just need to join the dots.

Finally, if you talk to Gen X(?), they’re not interested in driving, they’re interested in getting there and on the way catching up with the world on their phones/in-car internet device. Look at the stats for driving while on the phone. Self drive cars with wifi is what the next gen want.

So with all this in-car inter-connectivity, and it will be pretty high spec stuff, why would businesses lease a GPS software gizmo when the Google/Microsoft/Apple/Xero(!) car app can give them everything using factory pre-installed hardware coming as standard?

I believe ERD need to be ready to migrate away from their lease-a-box business and get into using the vehicle computer to run their software… take a leaf out of PPH’s business model.

Mmh - not sure you fully understand ERD's business and customer base.

Couple of things:

ERD are serving truck companies, not Gen X drivers (or non-drivers). Not that many in window ads and other gadgets in trucks (and I doubt the authorities would allow this in private cars either) ... and yes, it is correct and absolutely desirable that the company can track their vehicle wherever it is.

Self driving trucks? Absolutely - and they wouldn't change ERD's business case a bit. Trucks still would need to pay RUC.

And the other issue - to pay road user charges you can't just load an app on any platform - the authorities need to approve the combination of hardware and software before they accept this unit as a legit and temper-proof way to pay the RUC. Not sure I'd expect this to happen anytime soon on the onboard computer of any vehicle. Sure - it should be possible, but even then it is no advantage for fleet operators. They don't want a different system for each truck depending on make and year - they want a system which allows them to treat all trucks the same.

[thedrunkfish]

Having only done minimal research on the company, it would seem to me they are not targeting new cars or private vehicles.

Seems more to do with fleet management / compliance and H&S. The blog on Eroad's website is an interesting read.

Really like this company, and have done very nicely out of the recent rise in share price however, I do wonder about the long term future of ERD.

I know that sometimes negative comments go down like a waxed anvil on this forum, but if I’ve thought of it, others who are far smarter than me will be thinking it too…

First of all, there’s the ubiquitous installation of internet in every new car. Correct me if I’m wrong, but doesn’t this allow new cars to be easily located if they are stolen? I’ve also heard that software in a Benz can now choose the right gear for the next bend by referencing your position with your map position. Then there was the thought that Google would develop into a self drive car manufacturer, I don’t think this will happen but it shows how the internet is already an integral part of every new car or truck.

On this internet/car theme, and bringing out my crystal ball, lets throw mixed reality into the errr mix. This is where software scans your immediate environment and overlays information on it. I can just imagine driving down the road, and each window of your car will have a heads up display showing adverts and sale specials overlaying the shops you are passing, a marketers dream. The tech is all there, just need to join the dots.

Finally, if you talk to Gen X(?), they’re not interested in driving, they’re interested in getting there and on the way catching up with the world on their phones/in-car internet device. Look at the stats for driving while on the phone. Self drive cars with wifi is what the next gen want.

So with all this in-car inter-connectivity, and it will be pretty high spec stuff, why would businesses lease a GPS software gizmo when the Google/Microsoft/Apple/Xero(!) car app can give them everything using factory pre-installed hardware coming as standard?

I believe ERD need to be ready to migrate away from their lease-a-box business and get into using the vehicle computer to run their software… take a leaf out of PPH’s business model.

[bullfrog]

Mmh - not sure you fully understand ERD's business and customer base.

Couple of things:

ERD are serving truck companies, not Gen X drivers (or non-drivers). Not that many in window ads and other gadgets in trucks (and I doubt the authorities would allow this in private cars either) ... and yes, it is correct and absolutely desirable that the company can track their vehicle wherever it is.

Self driving trucks? Absolutely - and they wouldn't change ERD's business case a bit. Trucks still would need to pay RUC.

And the other issue - to pay road user charges you can't just load an app on any platform - the authorities need to approve the combination of hardware and software before they accept this unit as a legit and temper-proof way to pay the RUC. Not sure I'd expect this to happen anytime soon on the onboard computer of any vehicle. Sure - it should be possible, but even then it is no advantage for fleet operators. They don't want a different system for each truck depending on make and year - they want a system which allows them to treat all trucks the same.

Yep, went a bit "Minority Report" on it, but I think my point about the intrinsic computer power that will be present in all cars and trucks remains valid. I also know that it's not just trucks that are tracked, it's fleet cars, almost all council and govt vehicles are tracked, and probably every ute and sales vehicle that is part of a fleet.

I like your point of one system for all vehicles and the RUC payments. But if the car computer is safe enough to drive you around, it'll be safe enough to pay your RUC... I hope. And I'm thinking that it doesn't matter what device you have, be it a Samsung or Nokia, Ford or Suzuki, the app will still be the same.

Good to test my somewhat random crystal ball readings.

Not sure I'm going to be a fan of MR "Mixed Reality" though...

[BlackPeter]

Yep, went a bit "Minority Report" on it, but I think my point about the intrinsic computer power that will be present in all cars and trucks remains valid. I also know that it's not just trucks that are tracked, it's fleet cars, almost all council and govt vehicles are tracked, and probably every ute and sales vehicle that is part of a fleet.

I like your point of one system for all vehicles and the RUC payments. But if the car computer is safe enough to drive you around, it'll be safe enough to pay your RUC... I hope. And I'm thinking that it doesn't matter what device you have, be it a Samsung or Nokia, Ford or Suzuki, the app will still be the same.

Good to test my somewhat random crystal ball readings.

Not sure I'm going to be a fan of MR "Mixed Reality" though...

Absolutely - there is enough computer power in any cellphone and probably most modern vehicle computers to do what ERD's devices do. However - any mediocre hacker would be able to modify apps running on cellphones - for example to reduce the RUC bill which has to be paid to the land transport authority e.g. by removing individual trips from the record.

The issue is making the system temper-proof. Authorities want to have an easy and reliable method to find out if vehicles use public roads without paying RUC.

Obviously - ERD's devices can do more than that - they allow you to locate and track your vehicles (fleet management), they can replace the manual logbook (e.g. to make sure drivers do take their brakes and don't sit longer behind the wheel than allowed by law). Nothing essential - they just make the life of companies a bit easier and help them to save money for admin and they do develop systems authorities including police (for logbooks) can trust.

Any half capable electronic company could develop such devices. It is just that ERD has so far the market leadership for such systems (as well thanks to the brain dead paper based RUC system they are replacing in NZ) and any other company would first need to develop the Know How ERD already has.

The hope is that more states in the US are introducing a RUC to finance an overhaul of their dilapidating infrastructure and then look for a system which allows easy collection of these fees / taxes.

At this stage I think they might have found a market niche similar to what Diligent did with electronic distribution of board papers or what some people think PPH is doing for collecting the givings of the faithful by app. None of that would have been difficult to replicate by some other company, but sometimes it makes a difference if you are the first in a niche market.

Are they a guaranteed success? Certainly not.

[bullfrog]

Absolutely - there is enough computer power in any cellphone and probably most modern vehicle computers to do what ERD's devices do. However - any mediocre hacker would be able to modify apps running on cellphones - for example to reduce the RUC bill which has to be paid to the land transport authority e.g. by removing individual trips from the record.

The issue is making the system temper-proof. Authorities want to have an easy and reliable method to find out if vehicles use public roads without paying RUC.

Obviously - ERD's devices can do more than that - they allow you to locate and track your vehicles (fleet management), they can replace the manual logbook (e.g. to make sure drivers do take their brakes and don't sit longer behind the wheel than allowed by law). Nothing essential - they just make the life of companies a bit easier and help them to save money for admin and they do develop systems authorities including police (for logbooks) can trust.

Any half capable electronic company could develop such devices. It is just that ERD has so far the market leadership for such systems (as well thanks to the brain dead paper based RUC system they are replacing in NZ) and any other company would first need to develop the Know How ERD already has.

The hope is that more states in the US are introducing a RUC to finance an overhaul of their dilapidating infrastructure and then look for a system which allows easy collection of these fees / taxes.

At this stage I think they might have found a market niche similar to what Diligent did with electronic distribution of board papers or what some people think PPH is doing for collecting the givings of the faithful by app. None of that would have been difficult to replicate by some other company, but sometimes it makes a difference if you are the first in a niche market.

Are they a guaranteed success? Certainly not.

I think we're both in agreement. We're on a rollercoaster with this one.

[kiwi_crusader]

New player hit town 6 weeks ago with a device to collect RUC's in New Zealand. http://www.coretex.com/news/eruc-now...n-coretex-360/

[kiwi_crusader]

Eroad getting a little competition in NZ now with yet another company collecting RUC's.

http://dieseltalk.co.nz/news/teletra...ed-collect-ruc

[kiora]

New player hit town 6 weeks ago with a device to collect RUC's in New Zealand. http://www.coretex.com/news/eruc-now...n-coretex-360/

Its been around since 2005?
https://nz.linkedin.com/company/inte...nal-telematics

[freebee]

Eroad's USA profile is growing, lots to look forward to here

http://www.truckinginfo.com/channel/...fee-pilot.aspx

[BlackPeter]

Anybody noticing the lovely SP appreciation today? Up 45 cents, that's 15% ... without any news (unless the market took more than a day to digest the news released on Tuesday about ERD's involvement in this latest US trial).

Discl: Happy holder