Fleet UtilizationCost OptimizationAsset Management

Improving Fleet Utilisation Rates

Most fleets are larger than they need to be — and they have no idea. Here is how to measure utilisation properly and squeeze more value out of every vehicle.

James Ochieng

Trakora Author

September 20, 2024
6 min read
Improving Fleet Utilisation Rates

Utilisation is the most under-used number in fleet management. Owners obsess over fuel cost and driver behaviour, then quietly run vehicles at 35% utilisation for years. Fixing this single metric is often the largest cost saving available.

What utilisation actually means

Utilisation = (Productive hours ÷ Available hours) × 100

If a vehicle is available 200 hours a month and is productively used for 130 of those hours, utilisation is 65%.

Industry benchmarks

| Tier | Utilisation | |------|-------------| | Excellent | >75% | | Good | 60–75% | | Average | 45–60% | | Poor | <45% |

Why this matters

Financial impact

Every vehicle has fixed costs — financing, insurance, depreciation, registration — that you pay whether the vehicle moves or not. Higher utilisation amortises those costs over more revenue-producing hours.

Right-sizing decisions

Honest utilisation data tells you:

  • Which vehicles to retire
  • Whether you actually need that next vehicle
  • The optimal fleet mix (vans vs. trucks vs. boda-bodas)

Measuring it properly

What you need

  • Engine hours (not just kilometres)
  • Trips completed
  • Days in service vs. days available
  • Driver assignment data

Why GPS tracking helps

  • Accurate, automatic data — no clipboards
  • Historical trending across months and years
  • Vehicle-by-vehicle comparisons
  • Per-route utilisation breakdowns

Five strategies that move the needle

1. Identify underutilised assets

Look for vehicles with:

  • Low daily kilometres
  • Few trips per week
  • Long idle periods between jobs
  • Infrequent active days

2. Optimise scheduling

  • Balance workloads across the fleet
  • Minimise downtime between trips
  • Extend operating hours where demand exists

3. Share resources

  • Pool vehicles across departments
  • Cross-train drivers across vehicle types
  • Run a simple internal vehicle-sharing system

4. Reduce downtime

  • Faster maintenance turnaround
  • Better spare-parts inventory
  • Multiple shifts on the most-used vehicles

5. Right-size the fleet

  • Retire vehicles that consistently sit idle
  • Replace with appropriately sized units
  • Use rental for genuine peak demand instead of owning permanent surplus

What to track monthly

| Metric | Healthy direction | |--------|-------------------| | Average utilisation | Trending up, target >65% | | Vehicles below 40% used | Trending down | | Cost per kilometre | Trending down | | Total fleet size | Right-sized for demand |

Every unused vehicle is money sitting still. Fixing utilisation often funds the entire GPS programme by itself.


Want a free utilisation snapshot of your current fleet? Send us your last three months of trip data and we will produce a one-page report showing where the easy wins are.

Written by

James Ochieng

Sharing practical fleet management insights for Tanzanian businesses.

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