WHITE PAPERBrian BurkhardGlobal Technology Leader – Advanced Mobility SystemsJacobs

Brendan P. KeeganChief Executive OfficerMerchants Fleet

Brad JacobsDirector of Fleet ConsultingMerchants Fleet

Fall 2020

WHY BUSINESSES NEED TO BE THINKING OF CONNECTED & AUTOMATED VEHICLES[CAVs]

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1American Trucking Associations, industry data. https://www.trucking.org/news-insights accessed August 24, 20202Costello, Bob; Karickhoff, Alan. July 2019. American Trucking Associations, Truck Driver Shortage Analysis 2019.

The ChallengeIn recent years, the fleet industry has experienced tremendous growth with nearly 12 billion tons of goods hauled in 20191. Now, with more people doing everything from home due to COVID-19, delivery services are in even greater demand than ever before. Further compounding the demand is a grave shortage of truck drivers. In 2019, the truck driver shortage was estimated at 60,000 and was recently projected to be short by 100,000 in 2023 even without considering the pandemic2. These factors point to the need to improve fleet efficiency and safety.

The OpportunityWhile fleet operators continue to hone in on operational improvements and system enhancements, new types of vehicle technologies are a beacon of light for fleet operators. Automated truck functionalities will bring new collision avoidance systems and other improved safety applications. In fact, last year, automated trucks were identified in an American Trucking Associations report as one of the “courses of action” that will have a positive impact on the driver shortage – “making the job less stressful.” Improved vehicle communications will allow trucks to be more connected which will enable more real-time information to be exchanged with drivers. This information will allow drivers to safely optimize their routes, pick-ups and deliveries.

AbstractThis white paper - Why Businesses Need to be Thinking of Connected Automated Vehicles - describes connected and automated vehicles and the anticipated benefits, including safety, operational efficiency and cost savings. Real world use cases illustrate examples where connected or automated vehicles have created positive impacts to the fleet industry. Current regulations and the latest considerations for these vehicle types are described. We conclude with an outlook and recommendations on how best to prepare for these new types of technologies.

Why Jacobs & Merchants Fleet?Jacobs and Merchants Fleet came together from different perspectives to collaboratively innovate on new ways to improve fleet operations. A leader in the solutions sector, Jacobs explores ways to reinvent tomorrow by solving challenges in the complex system of moving goods and people. Through their consulting studies, planning and design engineering, and pilot work on connected and automated vehicles, Jacobs is advancing new technologies to help improve the transportation industry. As a provider of comprehensive fleet solutions, Merchants Fleet is also looking for new ways to optimize business, increase driver safety and improve system efficiency. Merchants Fleet brings expert understanding in the domain of goods movement and fleet management. Together, Jacobs and Merchants Fleet are sharing insight to offer new ways to think about how to operate fleets and move goods safely while taking advantage of the next generation of vehicles that will be connected and automated.

WHAT IS CAV?

While it’s common to hear the phrases automated vehicles and autonomous vehicles used interchangeably, there is an important difference:

Connected vehicles transmit data to enable applications that improve safety, mobility and the environment. Data can also be analyzed to inform key business decisions, such as route allocation and maintenance management.

AUTOMATED & AUTONOMOUS3

Automated vehicles have technology that automates aspects of the driving process, but generally a driver is still needed. This includes much of the driver-assist and automated driving technology we see today, such as lane-assist, automatic braking, adaptive cruise control, and more.

Autonomous vehicles take automated driving technology and combine it with artificial intelligence, producing a fully self-driving vehicle. This is the full vision of SAE level 5 – a vehicle that does not require a driver to take over and can drive in all conditions. McKinsey predicts that we are still a decade away from this technology.4

3https://www.sae.org/news/press-room/2018/12/sae-international-releases-updated-visual-chart-for-its-%E2%80%9Clevels-of-driving-automation%E2%80%9D-standard-for-self-driving-vehicles4https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/self-driving-car-technology-when-will-the-robots-hit-the-road

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For today’s businesses, CAV is a potential game changer because of the huge opportunity to improve operations. However, the road to automation is more complex than anyone imagined it would be. Over the last few years, advanced driver assistance systems were the most significant technological improvement. Over the next few years, the car’s ability to scan its environment will be the most critical, but it will require cameras combined with machine learning to develop. The evolution of this technology has financial, operational and safety benefits, along with others that we likely have not anticipated yet.

CONNECTED TECHNOLOGYYou could argue that third-party telematics were the first wave of connected technology in vehicles, since they gather key data about vehicle performance and driver behavior. As this technology becomes integrated into the vehicles themselves, we cross into connected vehicles. Connected vehicles are those that exchange data through wireless radio communications to and from other elements in their environment, such as Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), or even Vehicle-to-Anything (V2X).

While connected and automated technologies have different definitions, the two make the greatest impact when they are combined. Connected vehicle data, which encompasses a wide range of data points like vehicle location, speed, driver behavior, and more, are what will inform the intelligence that fuels automated vehicles. This, plus the fact that vehicles increasingly are coming off the production line with a combination of automated safety features and connected capabilities, is the reason why it makes more sense to discuss the impacts of connected and automated vehicles together, or CAVs, instead of separating the technologies.

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WHY USE CAV?

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There are connected and automated capabilities coming into the marketplace that companies can put into practical use today. Companies that take advantage of these capabilities reap the benefits of the latest safety features, have some of the best-quality vehicles on the market in their fleet, and benefit from the latest innovations. They’re effectively lowering their fleet costs and saving on administration by obtaining better-quality, more robust information that can be acted on to improve their fleet programs.

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”Brad JacobsDirector of Fleet ConsultingMerchants Fleet

5https://www.cisco.com/c/dam/en_us/about/ac79/docs/mfg/Connected-Vehicles_Exec_Summary.pdf

Improved driver behavior and fewer accidents naturally reduce the amount companies will spend on accidents and violations. However, as cars become equipped with connected and automated technology it will also reduce the cost of third-party providers, allow detailed fleet movement analytics, create more efficient delivery routes, improve driver safety, and improve driver experience. These ultimately will result in business efficiencies that will impact the bottom line. According to Cisco’s report “A Business Case for Connecting Vehicles,” connecting only a third of the vehicles in the United States has the potential to produce $100 billion of value. Based on an analysis of passenger vehicles, they also anticipate a 4% lower vehicle cost (including fuel and maintenance), 8% fewer crashes, 10% lower service cost, and 7.5% less time in traffic5. In the near-term though, companies should look beyond just cost savings as a reason to start diving into CAV.

COST SAVINGS

Businesses are already realizing the safety benefits of early-stage automated features. As automated safety features have become increasingly standard on vehicles, fatalities have declined and incidents have been reduced. Some of the benefits we’re seeing today, according to the IIHS6; include:

SAFETY

Backup cameras, rear traffic cross warnings, and driver sensory indicators can reduce back-up accidents by 65%. This increases to 78% when paired with automatic braking.

Forward Braking Safety features can reduce collisions by 43%.

Incident-related fatalities have declined by 16% since 2000.

6https://www.iihs.org/topics/advanced-driver-assistance7https://www.itsbenefits.its.dot.gov/its/benecost.nsf/ID/FA76E89162C06CF785257D4200510ECC?OpenDocument&Query=Home

Additional safety benefits are set to be realized as full development of CAV results in advantages like V2V and V2I communication. Research by the National Highway and Traffic Safety Administration (NHTSA) has indicated that vehicle-to-vehicle intersection and left-turn assist could save as many as 1,083 lives per year.7 The rich data about driving patterns and trends also presents the opportunity for proactive safety trainings, assigned to drivers based on their driving habits.

OPERATIONAL EFFICIENCY FOR BUSINESSES

Reverse Collision WarningBackup CamerasBlind Spot Detection SystemsForward Collision Warning

Reverse Collision WarningBackup CamerasBlind Spot Detection SystemsForward Collision Warning

Automatic High BeamsAdaptive Cruise ControlRain Sensing Wipers Reverse Collision Warning

Backup CamerasBlind Spot Detection SystemsForward Collision WarningAutomatic High BeamsAdaptive Cruise ControlRain Sensing Wipers

Lane Departure WarningPedestrian DetectionLane Keeping AssistRear Cross Traffic WarningAutomatic BrakingDriver Sensory Feedback

Reverse Collision WarningBackup CamerasBlind Spot Detection SystemsForward Collision WarningAutomatic High BeamsAdaptive Cruise ControlRain Sensing WipersLane Departure WarningPedestrian DetectionLane Keeping AssistRear Cross Traffic WarningAutomatic BrakingDriver Sensory Feedback

Rear Pedestrian DetectionInvisible TrailersMore to Come

PROGRESSION OF SAFETY FEATURES

By Model Year 2016

2018

2020

2022

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Telematics devices have been a mainstay in improving operations for businesses with vehicles, and CAV technology is set to take these improvements further. Typically, telematics devices must be installed, which involves downtime. Now, today’s connected vehicle technology offers even deeper data-collecting capabilities built into the vehicle itself. All companies have to do is opt-in and switch on the technology. Using this

forward-thinking technology, companies will be able to look at detailed vehicle perfomance measures like fuel efficiency and implement semi-autonomous features like remotely unlocking vehicles.

Having connected technology in the vehicle means companies will now be able to monitor vehicle location throughout the order to delivery process. Since the vehicle itself is connected and will likely have artificial intelligence, businesses are seeing more opportunities for seamless transactions and increased safety and security, both near-term and in the future.

2022 & BEYONDCONNECTED VEHICLENo Aftermarket Hardware

Driver BehaviorSpeedingAlertsDriver ScoringGamificationOrder to Delivery ManagementFuel Location ValidationMaintenance Service ValidationDowntime ManagementPM Compliance & HoursRemote Vehicle ManagementVehicle WalletFacial RecognitionIntegrated Cameras / AICommunication with Roadside InfrastructureCommunication with Smart Phone & Other DevicesMore to Come

Some use cases that are already being seen include:

Two-way communication between headquarters and drivers in the field via an in-dash display, which was recently developed by GM

Overlaying connected vehicle data with other fleet programs, such as fuel card data, to verify transactions and mitigate fraud

Visibility into vehicle location during the order to delivery process, allowing for more transparency and clearer communication between OEM, fleet management companies, and businesses who have ordered vehicles

Other future opportunities include virtual wallets, where connected vehicles can verify the driver profile, link a profile to a payment method, and allow drivers to fuel up at the pump without a payment card; using facial recognition and AI to verify drivers and prevent theft; and integrating data from cameras for accident investigation and reporting.

2020CONNECTED VEHICLENo Aftermarket Hardware

Driver BehaviorSpeedingAlertsDriver ScoringGamificationOrder to Delivery ManagementFuel Location ValidationMaintenance Service ValidationDowntime ManagementPM Compliance & HoursRemote Vehicle Management

2018TRADITIONAL DEVICEAftermarket Hardware

Driver BehaviorSpeedingAlertsDriver ScoringGamification

USES OF TRADITIONAL TELEMATICS DEVICES VS. CONNECTED VEHICLES

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Transmitting vehicle diagnostic codes to easily identify which vehicles require maintenance and should be called in from the road

There has been a tremendous amount of work done in connected technology since the early 2000s. The United States Department of Transportation’s Intelligent Transportation Systems Joint Program Office (ITS-JPO), in particular, has been doing research and pilots on connected vehicles across the country. Read about three current national pilots here.

Automated technology has been improving incrementally over the last few years, with advanced driver assistance systems (ADS) being one of the most significant technological improvements for businesses. Over the next few years, the car’s ability to scan its environment will be the most critical enhancement. It will require cameras combined with machine learning to develop the environmental awareness needed to make the jump from automated technologies to fully autonomous vehicles.

In the connected realm, we’re in a period of great growth. Automotive manufacturers’ data roadmaps are expanding quickly, with many making connected capabilities standard on new vehicle models. New fleet data opportunities, through the addition of cameras and sensors, are unlocking new capabilities that can provide insights into driver behavior, crash notifications, seatbelt usage, and location of vehicles in the supply chain.

However, there is still work to be done to standardize the types of data created and analyzed. Companies are faced with a wide variation in adoption and capabilities among various Original Equipment Manufacturers (OEMs), and how data is captured differs by supplier. Currently, connected car software and analytics providers such as Motorq are working with automotive manufacturers and fleet management companies to streamline and normalize data so businesses are able to make informed decisions.

THE CURRENT STATE OF CAVs

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THE CURRENT STATE OF CAVs

EXAMPLE USE CASES FOR CAVs

Ultimately, CAV will impact business cultures by improving safety, reducing administrative burden, and re-imagining the day-to-day management of a vehicle. To realize the full power of both connected and automated technologies together, there are many infrastructure questions and data integrations that have to be solved.

Los Angeles is known nationwide for its challenging traffic, but real-time scheduling and routing poses a solution to the city’s congested streets. Jacobs,

REAL-TIME SCHEDULING AND ROUTING

Cambridge Systematics and the Los Angeles County Metropolitan Transportation Authority are examining ways to inform real-time traffic and truck location through their project called Drayflex. The goal is to have a user-friendly, map-based app that informs truck drivers of the best routes available, informed by real-time data. Not like your typical navigation system, DrayFlex is an application that uses data only from trucking companies to inform the best routing algorithms. The same technology is also being explored for optimizing pick-up and drop-off movements. Finding a better way through the city’s ports and highways will one day be at a truck driver’s fingertips.

ADVANCED VEHICLE MOVEMENT MONITORING AND INTELLIGENT TRANSPORTATION SYSTEMS (ITS)Intelligent Transportation Systems (ITS) was one of the first “smart city” elements. Having origins in traffic signal technology from the 1960s, these technologies have evolved to include networks of traffic sensors, cameras, electronic signage, and management software. They include transit systems that can be controlled and monitored to make sure transit moves on schedule. It also includes highways, arterials, and remotely monitored traffic signal controls. By using technology and operational methods in combination with human oversight, these systems will help us improve how we monitor traffic flow through remote vehicle sensing equipment and

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Below are some real-life CAV applications. Some of these are being designed and deployed now by Jacobs.

Brian BurkhardGlobal Technology Leader for Advanced Mobility SystemsJacobs

CAV use cases and their pilot implementations have typically addressed improvements in safety, mobility and the environment. While these characteristics are all foundational for any public transportation system operator, we see these as also being transformational for businesses. The less accidents we have, the more efficient we can travel and the less impactful we can be on our environment, the better we can impact bottom line outcomes and commerce as a whole.

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notify the public on conditions in real-time. When fleet operators and truckers receive this real-time data, they can change their routes to avoid incidents and congestion. This can result in significant time savings.

For example, on an ITS project at the Port of Oakland, real-time terminal queue and congestion information will help truckers determine when they can add another "turn" to their day. An origin-destination analysis system allows detailed readings of travel time on roads leading to and around the port. Dynamic signboards on the highway and a dedicated smartphone application then alert truckers if they face traffic delays ahead so they can seek alternate routes.

COLLISION AVOIDANCE SYSTEMSCollision avoidance is considered the gold standard in safety. We have already seen the positive impacts of advanced safety technology, such as forward and reverse collision warning systems and pedestrian detection, on accident rates.

The next step is to use connected communications between vehicles and infrastructure to avoid collisions at intersections. Often, the deadliest traffic accidents occur at intersections. To help curb these fatalities, states are signing on to the Signal Phase and Timing (SPaT) Challenge, led by the American Association of State Highway and Transportation Officials (AASHTO). The goal of the initiative was to have 20 signalized intersections using dedicated short-range communications (DSRC) radios in each of the 50 states.

Using connected vehicle technology, vehicles approaching an intersection transmit a Basic Safety Message (BSM) which indicates real-time data like speed and trajectory information. An equipped SPaT intersection can transmit a signal to the vehicle indicating how much time is left in its current phase, such as “there are two seconds left in this green light.” Using data about the vehicle trajectories, combined with the space and timing of the intersection signals, systems can determine the probability of a collision and send a warning message to vehicles approaching the intersection if an accident is likely. This is seen as today’s most valuable use case for CAV technology. It is also

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especially valuable for the freight industry due to increased demand for one-day delivery, which means more drivers and more vehicles driving more routes. These systems can allow trucks to bring down wind drag which will ultimately reduce operational fuel costs and improve delivery efficiency.

PLATOONINGPlatooning is still in its exploratory stages, but it is seen as one of the greatest opportunities to create operational efficiency. Peloton is a new trucking technology company with a system that allows a lead vehicle to communicate with vehicles behind it. The communication from the lead truck will control the other trucks to follow at a set speed and distance from each other. Equipped trucks can come up behind the lead vehicle and request to join the platoon.

TRANSPORATION NETWORK COMPANIES, SHARED AUTONOMOUS VEHICLES AND AUTOMATED DELIVERYTransportation network companies (TNC) include ridesharing services, such as Uber and Lyft, as well as micro-mobility companies that provide alternative modes of transportation like bikes and scooters. TNCs are poised to have significant impacts on our transportation systems. Uber and Lyft have made investments into automated vehicle technology because business cases for robotaxis and automated shuttles are being explored. Many companies are doing a number of studies to inform the public on how to make use of automated fleets for taxi services, whether single vehicle or shared passenger shuttles.

Airports are a prime example of how TNCs are changing the way we think about and use curb space. Airport authorities are working on new solutions for curb space and drop-off and pick-up points for these services. Jacobs worked with San Francisco International Airport to study and develop their dedicated TNC space on top of their short-term parking garage. This resulted in less congestion at the departures and arrivals curbs, which were reserved for use by the general public. By creating a separate and dedicated TNC area, the airport improved operations and the overall quality of passenger experience.

REGULATORY LANDSCAPE AND CONSIDERATIONS

While connected and automated technologies are the most powerful when used together, there has been varying federal regulation around each.

In the absence of federal regulations, state and local governments have been dictating how automated vehicles are tested, piloted and used. Jacobs has worked with states, like Nevada, to help institutionalize a statewide framework for CAV policies. It often comes down to state Departments of Motor Vehicles to set regulations and controls, as they typically require automated vehicle users to apply for permits in order to operate on public roadways. A searchable database of state legislation can be found here.

Without unified regulations, there is some concern that there will be inconsistency between states and a lack of accountability. For example, the NHTSA ordered EasyMile, an automated shuttle company, to stop operations in 10 cities after a shuttle in Columbus, Ohio, braked unexpectedly and caused a passenger to fall (the suspension was ultimately lifted).8 The incident was enough to prompt concerns.

Despite the lack of regulation, automated technology is hitting our roads, ready or not. All major automotive manufacturers have electric and automated vehicle programs, with plans to manufacture highly automated vehicles, which require reduced human intervention, within the next two to three years. Rural and highway applications will be the first to see impacts of this technology, with more complex urban capabilities in years to come.

For automated technology, the federal government’s approach currently has been to have less intervention and to promote self-regulation instead. The thought is this approach allows commercial entities to do what they need to promote and advance automated vehicle technology since regulations could obstruct progress. However, there have been many critiques of this approach.

A LACK OF ACTION ON AUTOMATION

8https://www.smartcitiesdive.com/news/smart-columbus-NHTSA-autonomous-shuttles-linden-leap/573107/

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Brian Burkhard

On the one hand, I can understand the relaxing of mandates or regulations to help stimulate entrepreneurialism of AVs. However, this has resulted in a patchwork of regulation across the US. Imagine the implications of driving an automated platoon to a state border, only to discover that system is not allowed in the next state. Until there are more federal or unified and standardized guidelines, this will continue to be a barrier to bringing AVs into one’s business model.

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The regulatory situation around connected vehicles has been much more proactive. The NHTSA issued a Notice of Proposed Rulemaking to require that all new vehicles be equipped with DSRC, which enables vehicle-to-vehicle communication, by 2023. However, there has been no indication that the USDOT has moved on the rule making since there were concerns the mandate would be a burden to automotive manufacturers.

There is also the challenge that the radio spectrum that was originally set aside as a safety band for intelligent transportation systems and proposed to be used for vehicle-to-vehicle communications has yet to be used because of the lack of a mandate and a slow federal research and development program. The bandwidth is in high demand and desirable for internet and cell phone companies. The FCC has proposed cutting into the spectrum for these commercial uses, which has created uncertainty about what will be left for connected vehicles. The industry has pushed back on the proposal because it’s perceived as an encroachment upon a radio frequency that could be used to improve safety.

THE KEY PIECE OF THE PUZZLE: INFRASTRUCTUREUltimately, to reap the most benefit from CAV, improving communications infrastructure is essential. Roadside fiber networks and cellular infrastructure like 5G will improve vehicle ability to communicate with infrastructure and each other, which is a critical piece of the CAV puzzle. CAVs are only as useful as they are connected. Getting information on the transportation system in advance helps to inform a driver and CAV beyond what is being sensed in the immediate surroundings. What is happening beyond the point of view of the vehicle impacts how drivers and CAVs make decisions. Cities and major metro areas need long-term plans to address automated vehicles so they are ready to reap the massive benefits around safety, traffic management and environmental impacts. All these improvements have positive impacts on business efficiency and costs.

COMPLEXITIES WITH CONNECTED VEHICLES While it is difficult to say when CAVs will be

commonplace, it is safe to say that fully autonomous vehicles are still far in the future due to the infrastructure, regulations and policies that must be developed first before they can be widely used. What can be outlined, however, are signs that indicate whether CAVs are on track to faster or slower adoption.

WHEN WILL CAVs ARRIVE?

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The road to CAVs has been long, and it started much earlier than many of us think. For example, cruise control was the first taste of automating a piece of the driving process. It has taken incremental changes over decades for us to reach today’s hint of self-driving cars through technologies like Tesla’s Autopilot. This incremental rate of change is how the road to full autonomy will continue.

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”Brendan P. KeeganCEOMerchants Fleet

While many unions are concerned about the loss of jobs to automation, the reality is that humans are still going to be needed to monitor and drive semi-automated vehicles as the technology is being developed. These new types of vehicle will also require re-tooling of maintenance facilities. We are living in a time when the demand for improved last mile and delivery services is going to create more opportunities overall, as well as for drivers. Finally, the rise of this new technology is going to create different jobs that will need to be filled, such as people to develop, monitor and manage new types of operating systems and to analyze the data produced.

EMPLOYMENT OPPORTUNITIES

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Potential Signals that Adoption May Accelerate

Insurance companies begin giving discounts due to CAV safety advantages

Cost of AVs equals that of non-AVs

Government legislation is quick to adopt policies allowing highly automated vehicles in certain areas

Uber or other ride sharing services commit to CAVs

Level 5 AV technology advancements are made earlier than expected

Safety of CAVs performs significantly better than non-CAVs

Mandating legislation is passed for CAVs

Potential Signals that Adoption May Slow

Individuals hurt or killed in CAV accident

Cyberattack or widespread hacking makes people skeptical of CAVs

Economic recession keeps businesses and individuals from investing in CAVs

Level 5 AVs take longer to be built than originally expected

Level 5 AVs are ready, but city infrastructure doesn’t support them

People continue to prefer car ownership and non-automated operation

MANAGING THE FUTURE IMPLICATIONS OF CAV

The detailed level of data gathered by CAVs shows potential for the vehicle version of something not unlike that of an airplane’s “black box” – an ability to have thorough, detailed snapshots of what was occurring with a vehicle in real time. The ability to have this level of data is significant, from simply streamlining operations, to adjucating accidents, to having the level of data required for V2V communication, which will improve safety and pave the way to fully self-driving vehicles. Connected technology has been a significant focus for companies that leverage vehicles for their business.

Here are some ways that businesses can proactively manage some of these anticipated changes:

Stay informed. Maintaining relationships with OEMs as they develop new technologies will be critical to ensuring we understand their impact.

Think “what if.” Business leaders can be proactive by creating “what if” scenarios and considering the social, technological, economical, environmental and political impacts that will come. Companies should pay attention to what they might be able to do to improve operations with these vehicles, especially in delivery and last mile applications. Fleet managers and operations professionals who impact fleet (and those who consult them) should begin thinking now how CAVs could be used in their fleet strategy. For some, it will make more sense to use this technology earlier than for others.

Think from multiple angles. On the other side, it is important for businesses to consider potential impacts on their business model as automation progresses. This means not only thinking about the scenarios in which you win. The harder conversations to have are the ones where there are potential negative consequences. For example, do you want to be the owner of a parking garage in a major city if autonomous shuttles lead to a reduction in individual car ownership? Preparing for scenarios now allows you to be nimbler in your response when change comes.

Think about how CAVs could have a ripple effect on everything else that is part of your business model value chain. For example, how will CAVs affect fuel usage or maintenance? What would it look like for a vehicle to drive itself to a charging station or mechanic? How will autonomous vehicles change the insurance industry?

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HOW DO COMPANIES START IMPLEMENTING / PREPARING FOR CAV?

While there have been many bold claims, from then Google CEO Sergey Brin proclaiming in 2012 that fully autonomous vehicles would be a reality for the general public within five years to then Uber CEO Travis Kalanick promising to get rid of human drivers by 20209, the reality is many of these claims have gone unfulfilled. Fully autonomous cars and V2V communication may still be years away, but businesses can still take definitive steps to prepare for these technologies today.

Updating policies and beginning early planning is something that businesses can begin to do now. Businesses that fail to prepare may find themselves at a strategic disadvantage, as they will lack the policies and procedures to access and effectively use the data generated by these technologies.

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9https://www.huffpost.com/entry/autonomous-vehicles-uncertain-future_n_5d4c71f4e4b09e7297435cd4

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Brad Jacobs

Fleets that are on the forefront of adopting connected and automated technologies are the ones that are going to be defining the offering for others to follow. People who get into this market early are going to create it by shaping demand for features and capabilities. If you want to have a true impact, get in now.

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STEPS FOR COMPANIESHere are steps that companies can take now to ensure that as connected and automated technologies develop, they can reap the benefits at each step in the process:

Set your goals. Just like with any other aspect of your fleet strategy, identify the pain points you want to solve and prioritize the areas that matter most to your company’s culture. Outline what business challenges you want to address through the use of CAVs and how you plan to adopt CAVs in your business.

Rollout your strategy to the company. Once you have clearly outlined what you want to accomplish with CAVs, it’s time to communicate those goals and incentives to the broader company. This is the time to get buy-in at all levels: this includes executives, brand managers and drivers. Remember that unlocking the benefits of CAVs begins by opting in your vehicles that have connected capabilities. Consider using gamification, incentives and awards to encourage opt-in and adherence to connected vehicle policies. This will also help to integrate CAV use into your company culture.

Measure your progress. One of the best ways to benchmark is against yourself. Set realistic, attainable benchmarks to track how the implementation of early CAV technologies is impacting fleet performance. Use the data gathered to understand and identify areas of opportunity and focus on these areas when addressing policy and driver behavior changes

Make adjustments. Just as with any business program or strategy, it’s important to stay engaged by making adjustments along the way. This can include changing incentives to improve driver and company engagement with the program as well as updating targets and goals according to business needs. Make sure to communicate early CAV results to drivers and other stakeholders throughout the company.

Quantify the impact. Whether it is dollars saved, number of incidents avoided or hours of downtime reduced, take the time to quantify what CAV technology is saving you. This gives you tangible evidence as you evaluate progress and can be a helpful way to gain buy-in if you want to expand the scope of CAV use in your organization.

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At Jacobs, we're challenging today to reinvent tomorrow by solving the world's most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With $13 billion in revenue and a talent force of more than 55,000, Jacobs provides a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sector. Visit jacobs.com and connect with Jacobs on Facebook, Instagram, LinkedIn and Twitter.

About Jacobs About Merchants Fleet

Merchants Fleet is the nation’s fastest growing fleet management company, providing flexible funding and service options for organizations that leverage vehicles to run their operations. Merchants Fleet offers comprehensive & customizable fleet solutions, serving as a single source for all vehicle needs. Our programs range from long-term leases to monthly rentals, including unique options such as rent-to-lease and own-to-lease. With over 125,000 managed vehicles nationwide, our expert teams have experience working with nearly every industry, from corporate fleets to last mile delivery to franchise systems. We offer the most high-touch service and innovative experience across the industry, with specialized teams and a FleetTech model that merges fleet with technology to ensure our clients get the best performance out of their fleets. Merchants Fleet is headquartered in Hooksett, New Hampshire, and its Innovation Center is located in the Chicago, Illinois area. For more information, please visit merchantsfleet.com.

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STEPS FOR AGENCIES & GOVERNMENT ORGANIZATIONS

Here are steps that government transporation agencies can take to get ready for CAV:

Evaluate your system needs. Determine what your transportation system needs are without looking to a specific solution. This will help prevent you from looking for a problem that a technology could solve.

Look at the menu of technology options. Consider how new technologies might solve some of your most pressing transportation challenges.

Conduct a gap analysis. Look at the differences between what you’d like to implement and what you currently have. In many cases, integrating or re-using some of your existing assets will help realize the system.

Sell your ideas internally. Find others within the organization that can help you champion these new solutions.

Conduct a pilot. Setting up a real-world solution to test out new ideas goes a long way to win agency support.

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