Telematics leaders are turning privacy compliance into a competitive advantage, writes Grant Fraser, group MD of Netstar.
Fleet executives across South Africa face the same fundamental question: How do you harness the power of telematics data whilst complying to increasingly stringent privacy requirements?
Since the European Union launched GDPR in 2018, followed by South Africa’s Protection of Personal Information Act (PoPIA) in 2020, every executive managing fleet operations must navigate this balance.
There is power in telematics data; it empowers fleet managers, brings value to drivers, and cuts preventable costs. But with those numbers comes both opportunity and risk, as fleets collect large amounts of data in an environment where information is now closely regulated.
The trust factor reshaping business strategy
South African executives operate in a unique privacy-sensitive market. Our concern about the misuse of personal data (42%) significantly exceeds the worldwide average (32.3%), according to We are Social 2023 study. This heightened sensitivity of both regulatory compliance challenges and business performance implications.
The real cost of getting privacy wrong is substantial. According to Think With Google research, consumers view poor privacy experiences almost as damaging as actual data theft. The business impact is immediate: 43% of customers will switch to another brand following a poor privacy experience. In fleet management, where relationships often span decades, this represents serious business risk.
Yet South Africans embrace telematics benefits despite their data concerns. While people remain generally cautious about their data, and a small percentage believe that the information may be used negatively, the benefits are being recognised.
The safety aspect that telematics provides in our crime-ridden society offers genuine peace of mind that outweighs privacy concerns for many users.
Where the boundaries lie
The solution starts with understanding what’s legally permissible versus what crosses privacy lines. Our Constitution guarantees everyone the right to privacy – protection of personal space, dignity and information. A 2004 academic paper defines privacy as “the ability of individuals to decide when, what and how information about them is disclosed to others.”
Here’s where fleet operations differ from typical business relationships. Unlike direct transactions with banks or online services, telematics data is generated through contracts where collection of customer data that is consented through the acceptance of Terms & Conditions, this creates both opportunity and responsibility.
The legal framework is clear: any data collection requires explicit agreement around storage, sharing, and purpose. For fleet operations, this typically happens through employment contracts where consent becomes part of job acceptance.
But, while the legal boundaries are clear, applying them in practice requires careful navigation of trust, transparency and customer expectations.
- Company assets? Yes. Tracking vehicles, equipment, and company-provided devices falls within a legitimate business scope when employees have agreed through employment contracts.
- Personal property? No. Personal phone calls, private vehicles, or personal devices, even when used for work, constitute a privacy invasion. The authority extends exclusively to company assets. However, if a personal device is used on the company network- according to Bring Your Own Device (BYOD) policy, activity may be monitored.
What data drives business value
Once you understand the boundaries, the question becomes: which data delivers measurable returns? Telematics provides enhanced information about vehicle behaviour that encourages better driving habits and could potentially lead to improved efficiencies.
Technology plays a crucial role in accident detection and reconstruction, streamlining claims processes. For fleet management, it enables fuel consumption reduction, evaluation of unsafe driving practices, route optimisation, and high-risk zone alerts, while supporting stolen vehicle recovery and asset protection.
The specific data categories driving measurable results include access control systems, pre-operation checklists, performance metrics, impact assessments, and fault code analysis.
For insurance partnerships, telematics deliver insights on driver behaviours that matter: speed limit adherence, route preferences between main roads versus higher-risk areas, driving distances, and time-of-day patterns.
As Arrive Alive explains, “Insurance is all about measuring and calculating risk. Vehicle telematics is the best, most effective and scientific way to limit risk.”
Turning compliance into competitive advantage
Here’s where savvy executives flip the script. The regulatory requirement – consent for specific stated purposes -creates a market opportunity. If your data usage evolves beyond original consent parameters, you must explain the new purpose and obtain fresh consent.
This transparency requirement becomes a relationship-building tool. Organisations that excel at clear communication about data value build stronger connections with both drivers and customers. When people understand precisely how their information drives safety, efficiency, and cost reduction, they become advocates rather than sceptics.
This approach addresses the reality that insurance companies increasingly rely on telematics for user tracking, building on established monitoring practices in high-risk fleet industries. But instead of presenting this as surveillance, successful companies wrap it as mutually beneficial.
Turning compliance into market position
This evolution creates market positioning opportunities for executives who understand that privacy leadership amplifies every other business advantage. When customers trust your data practices, they’re more likely to share comprehensive information that improves service delivery and operational efficiency.
Personal information breaches deliver immediate and lasting business damage. Word spreads quickly, eroding customer trust and raising questions about organisational commitment to privacy and security. In South Africa’s relationship-driven business culture, reputation damage can take years to repair.
The inverse is equally powerful: organisations known for exemplary privacy practices build market differentiation that competitors struggle to match.
The bottom line for fleet executives
The privacy dilemma isn’t really a dilemma at all; it’s a market differentiation opportunity hiding in plain sight. While competitors struggle with compliance as a burden, savvy executives use transparency requirements to build stronger stakeholder relationships.
The companies winning in this environment understand that privacy leadership directly impacts their operational metrics. Better driver relationships lead to more comprehensive data sharing. Enhanced customer trust translates to longer contract terms. Reduced reputation risk means lower insurance costs and easier recruitment.
At Netstar, we’ve seen this transformation firsthand over three decades in the industry. Fleet managers who embrace privacy as a strategic framework consistently outperform those treating it as a checkbox exercise. They experience better driver retention, stronger customer loyalty, and more favourable insurance partnerships.
The choice facing executives is to continue viewing privacy requirements as regulatory overheads or to leverage them as relationship-building infrastructure that enhances every aspect of fleet performance. In a market where trust increasingly determines business success, the right choice seems obvious.