Jason Francis is something of a reluctant business entrepreneur.

The founder of fleet management systems provider Jaama spent almost 10 years at Pendragon-owned CFC, the last five as managing director.

CFC was a highly-profitable business for Pendragon but was seen by the UK’s biggest car franchised retailer as a non-core operation.

Investment was diverted elsewhere and Francis foresaw his part of the organisation slipping behind its competitors.

He now freely admits his preference at the time would’ve been to stay with a fullyfunded CFC. “Did I launch Jaama through choice? Not really,” he says.

The company was set up almost five years ago with a clear strategy: to develop the first fully web-based fleet IT system.

The business model was built on selling to smaller leasing companies and fleet operators with 300-500 vehicles; the balance sheet was based on selling two full-scale systems and eight to 10 smaller systems per year.

It quickly became apparent following the launch of Jaama’s first software product in March 2005 that Francis had got his predictions wildly wrong: most demand was from the larger fleets.

He believes Jaama’s eagerness to meet client requests was key. “At that point there was a lack of software investment because most systems were owned by large companies.

"So us saying ‘we can do that’ changed the business environment,” Francis says.

“We spoke to customers and understood their needs; and that enabled us to add in new facilities to create a very rich system.”

Francis claims a number of fleet firsts.

The software is browser-based which makes it more functional, it can link to any other modern IT system (for example, telematics, journey planning, vehicle appraisals and fuel card providers) and it has a fully-integrated accounts package that links into the customer’s accounts system.

It also uses CAP advance pricing, which provides vehicle maintenance history, and has an integrated licence checking facility for P11D forms.

But the real difference is the support package. Jaama often stays with its customers months after the system has been delivered, training staff and creating a programme to deliver the company’s goals.

“We give them choices about how they want to use the system. We have even written procedures for some companies,” Francis says.

His aim is to help fleets, leasing companies and rental companies to save money, automate the management process, make their job easier and reduce human error.

But while Jaama’s public relations agency describes it as the market leader, Francis is more reserved.

“I wouldn’t call us that,” he says. “But when people see our system next to our rivals, they choose ours.”

Growth has accelerated over the past couple of years. Jaama’s turnover has risen almost 75% year-on-year, from £1.2 million in 2007 to £2 million in 2008.

It’s been a snowball effect that has its roots in referrals and recommendation, the source of the bulk of Jaama’s business wins since launch.

The company now has 105 customers on its Key2VM software, mostly fleets above 700 vehicles with a few leasing and rental companies.

Its RiskAssistant risk management system, which targets fleets with up to 250 vehicles, has 260 customers.

Francis believes there is a market of 500-600 companies for its main fleet management system. But signing them up is a long-term process. “On average they review and change systems every eight to 10 years,” he says.

On top of that client list are 400-500 contract hire and leasing companies.

Their part of the market is changing. Ten years ago the entry point to the FN50 was almost 5,000 vehicles. Last year it was less than 1,400.

Consolidation has been rife and it means smaller companies player a bigger role.

“There is an opportunity for specialist companies to come into the market with a low cost of entry. They can buy a system that allows them to compete with the big boys,” says Francis.

“I see that part of the market increasing with a shift away from brokers towards smaller specialist leasing companies.”

He also sees a massive opportunity in the rental sector, with 600-700 companies big enough to take its product.

“If they have 25 vehicles plus, they have an opportunity to put in our accountancy system – it’s a total solution for them.”

Francis has seen a massive swing in the fleet market over the past 15 years from fleet managers towards company directors.

His discussions now often take place at board level, which can speed up the sales process.

However, while fleet strategy might rest with the senior management, most companies still employ a fleet specialist.

The business of fleet management has become more complex with greater legislation, the growth of grey fleets and the need to minimise costs.

“Their role is more that of a doer than a planner,” Francis says. “But companies still need someone in the department with fleet knowledge.”

How software cuts costs

  • Road fund licence Small fleets can save up to £6,000 by having the right licence.
  • Fuel The system identifies the exceptions in terms of drivers not getting sufficient levels of fuel economy returns – action can be taken to address them.
  • Supplier cost management Checking invoices.
  • Administration Cost allocation and invoice queries on recharges can be
  • reduced.
  • Vehicle utilisation Car availability within the fleet before another car is hired; the bigger the fleet, the bigger the saving, especially with redundancies and vehicle re-allocation in current economic situation.