The firm is using the technology to improve performance of its breakdown fleet and reduce costs by remotely monitoring driver behaviour such as braking, cornering and adherence to speed limits, as well as improve response times to breakdown customers.

Using a discreet black box that plugs into each vehicle’s diagnostics port, RAC is able to track vehicle location and proactively monitor vehicle health. Each black box is fitted with an EE SIM card and an antenna, so it can transmit data wirelessly to and from RAC central systems. Also, fleet drivers can view their own performance data using a smartphone or tablet app, which RAC is then able to incentivise.

Since installing the 5,000 EE M2M SIMs across its breakdown fleet nationwide, RAC has made a 17% saving in fuel costs, amounting to £500,000 a year. It has now begun trialling the technology with its corporate customers as a new service.

Kerry Michael, commercial director at RAC, said: ‘We saw huge potential in M2M for our own business and as an outsourced solution to help our customers improve their own fleet management. In particular, we saw it as a great way of reducing vehicle failure rates, improving driving standards and pinpointing breakdown locations to speed response times.’

To watch a video outlining the RAC/EE system, click here.