Our article provides a comprehensive guide for you to better understand fleet management app cost. It includes factors influencing pricing, our cost-saving tips, as well as useful insights.
Highlights:
- A well-built fleet management software can significantly reduce operational costs while also boosting profitability.
- The fleet management software cost varies depending on needed functionality, scalability, and region.
- Custom solutions may cost more upfront than ready-made solutions, but they offer better flexibility.
What does managing a fleet of vehicles typically look like without a reliable fleet tracking system in place?
Most likely, it is about operational delays, mounting fuel costs, and lots of difficulties associated with tracking driver performance. If you are a business owner in transportation, logistics, or even just local delivery services, these challenges might be your daily routine. However, a custom fleet management software can help you with these and many more tasks, while also streamlining operations, improving efficiency, and reducing costs.
At Mind Studios, we’ve been helping businesses like yours tackle various pain points with our custom solutions. Our work on James Butler, a popular Danish food delivery app, and Pampr, a grocery delivery service, show how exactly tailored solutions can skyrocket clients’ operations.
If you want to build a similar solution and are looking for a reliable tech partner with a transparent pricing structure, take a minute and contact our expert team for a free consultation.
In this article, we are going to share with you everything you need to know about the cost of developing fleet management software. We will break down factors, hidden expenses you may face, as well as how to optimize your investment, all based on our experience. Spoiler alert: inside you will find plenty of actionable insights and figures to guide you.
So, let’s get started.
Fleet management app cost: Key examples and price drivers
Fleet management software pricing is greatly affected by numerous factors, with the type of business and specific features being the most important ones. While small businesses might be fully satisfied with basic apps featuring core functionality like GPS tracking and driver performance monitoring, large enterprises may require complex solutions with advanced analytics, integrations, plus scalability.
Here are our examples of a fleet management app price based on business size:
Size of business |
Functionality |
Estimated cost |
App examples |
|---|---|---|---|
Small business |
Basic features:
|
$30,000–$50,000 |
A simple app tailored to managing a local fleet of up to 20 vehicles. Main requirements:
|
Mid-sized business |
More complex features:
|
$50,000–$150,000 |
Bigger logistics company with ~100 vehicles. Main requirements:
|
Enterprise-level business |
Highly customizable solutions with advanced features:
|
$150,000+ |
A multinational courier service with 1000+ vehicles. Main requirements:
|
Factors directly influencing the development of fleet management software
Now, let’s talk in detail about which factors influence the cost to develop a fleet management system.
Factor #1: Type of software
The type of fleet vehicle management software has a significant impact on the overall costs. Here, you can opt for:
- Off-the-shelf software. These are usually pre-built solutions that are faster and, oftentimes, cheaper to deploy, but they lack scalability and flexibility. They are an optimal fit for businesses who don’t have unique requirements; for example, small delivery fleets.
Cost range: $5–$50 per vehicle per month - Custom software development. Tailored software that is designed specifically for unique business needs. It may have higher upfront costs, but it comes with better functionality, higher scalability, and possibilities for long-term savings. This is an ideal option for businesses with complex operations.
Cost range: $30,000–$150,000+
If you ask me which solution is better, I will immediately answer — custom ones. Why? Custom solutions allow you to fully tailor the features to the business needs, which means they are scalable and adaptable as your business grows.
Unlike ready-made solutions that usually force you to adjust your operations to fit the software, custom software is built to work seamlessly with your workflows. Yes, it may have higher upfront software costs, but based on our experience, the long-term savings and efficiency gains far outweigh the initial investment. We had seen firsthand how custom solutions did wonders for businesses by optimizing fleet management, reducing costs, plus giving a competitive advantage for companies
— says Dmytro Dobrytskyi, CEO of Mind Studios.
Here, we should also mention that choosing between mobile, web-based, or both types of app also influences the cost of fleet management system development.
- Mobile fleet management app. Mobile apps focus on providing on-the-go access, mostly for drivers and managers. They require platform-specific development (iOS or Android), or cross-platform development, which increases the cost.
- Web-based fleet management app. Web platforms are typically aimed at management teams to oversee all the operations, analyze real-time data, and generate reports. Usually, such development requires backend development and cloud integration, which adds to cost, too.
Mind Studios’ insight: At Mind Studios, we always recommend our clients opt for native app development over cross-platform one. This is because native apps offer better performance, seamless access to platform-specific features (like push notifications and GPS, for example), and superior user experience. While cross-platform development may be cheaper, native apps provide better scalability and long-term value, which is important for fleet management software development.
Factor #2: Complexity of required features
The more complex and feature-rich you want your app to be, the higher the development cost. Here is how exactly feature complexity affects the fleet management system cost.
Factor #3: Team composition, their experience, and geography
The expertise and location of the development team significantly impact the development. For example:
- Team composition. A typical development team required for fleet app development includes a project manager, UI/UX designer, backend and frontend developers, QA specialists, and sometimes a data analyst. If you need a larger team, this can increase the total cost of fleet management software.
- Experience. Skilled developers usually charge higher, but they are experienced in handling complex projects. So, by paying extra, you will be able to deliver a more efficient fleet management system.
- Geography. Development costs also vary by region, so you may face significant differences in hourly rates of developers from different countries.
Mind Studios’ insight: Lower development costs in certain regions don’t mean lower quality outcomes. For example, developers from Eastern Europe, especially countries like Ukraine, are famous worldwide for delivering high-quality products. Overall, this region has a vast talent pool with strong tech education and competitive rates.
If you need to get a fleet management app cost estimate, contact us and our tech team will answer all our questions and will guide you on this matter.
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Fleet management app types and their core functionalities
There are many types of fleet management apps out there, each built for a specific purpose of the business, as well as aspects of fleet operations. Don’t know which fleet management solution to choose? Here is what Dmytro Dobrytskyi, CEO of Mind Studios, has to say on this matter:
When building fleet management software, you should always start with identifying your pressing business challenges. We also recommend first developing a minimum viable product, a.k.a. MVP, and implementing core features, like, in your case, GPS tracking or fuel management, and then scaling your app and adding necessary features as your business grows.
Below, you can find the most common types of fleet management apps based on their functionality, as well as the challenges they help address and the opportunities they create.
Fleet tracking/GPS-powered apps
Such apps are the backbone of any fleet management system as they allow it to monitor vehicle location, optimize routes, as well as ensure on-time delivery.
Key features |
Challenges they address |
Opportunities they create |
Best fit for |
|---|---|---|---|
|
|
|
Small to mid-sized companies, courier services, and logistic businesses that rely on timely deliveries and/or need better visibility of their vehicles. |
Driver performance monitoring apps
These apps are used for monitoring and evaluating driver behavior, improving safety of your fleets, as well as reducing risks of accidents.
Key features |
Challenges they address |
Opportunities they create |
Best fit for |
|---|---|---|---|
|
|
|
Transportation or logistic businesses that manage large fleets, ride-sharing platforms, or long-haul transportation companies. |
Fuel management apps
They are built to better monitor fuel consumption as well as reduce operational expenses.
Key features |
Challenges they address |
Opportunities they create |
Best fit for |
|---|---|---|---|
|
|
|
Logistic or trucking businesses, or any other business with high fuel consumption. |
Vehicle maintenance management apps
Such apps are aimed at ensuring timely maintenance of your vehicles, reducing the chances of costly breakdowns, as well as extending their overall lifespan.
Key features |
Challenges they address |
Opportunities they create |
Best fit for |
|---|---|---|---|
|
|
|
Fleet business owners that have lots of aging vehicles; rental companies; any business requiring high vehicle uptime and longevity. |
Complex fleet management apps
These are powerful apps that include more than one type of features, such as GPS tracking, fuel management, driver performance monitoring, and more.
Key features |
Challenges they address |
Opportunities they create |
Best fit for |
|---|---|---|---|
|
|
|
Big enterprises with complex operational workflows, or businesses with many operational challenges to address. |
At Mind Studios, we created numerous solutions that addressed complex fleet management challenges. One of them is James, a food delivery app for Danish users.
For this project, we were tasked to create two apps: for buyers who make orders and shoppers who deliver them, on both iOS and Android platforms in just three months (!). It is an impossible task for many, but not the Mind Studios’ team. As a result, we created a complex backend infrastructure and admin panel and connected them with Stripe (not without adventures, though, which you can find in our case study).
Our development process consisted of several stages:
- Collaborating with the product owner to prioritize the required features and streamline processes.
- Integrating with the SEPA-based instant payment system through Danske Bank, as well as Stripe implementation.
- Delivering apps with robust functionality and seamless performance under very tight deadlines.
Here are our achievements after just 3 months of James being launched:
How much does it cost to develop a fleet management app?
Now, to the most important part: money. So, how much does fleet management software cost?
Frankly, we can’t provide you with an exact sum because every project is unique, and the total cost depends on many factors, including project complexity, the chosen platform and features, and the scope of the solution.
But here, we have created a rough breakdown of the key cost drivers and extra factors to consider when building a comprehensive solution with both web and mobile apps.
Development stage |
Description |
Estimated cost |
|---|---|---|
UX/UI design |
Creating an intuitive interface with easy navigation for drivers, users, and managers. |
$7,200 - $10,800 |
Backend development |
Modular architecture that effectively handles GPS updates and data processing. |
$15,400 - $21,600 |
API integration |
Integration with a number of third-party services like GPS tracking, fuel cards, ERP, CRM, or others. |
$3,600 - $5,200 |
Mobile development |
Mobile app with a focus on real-time tracking/notifications. The cost to build a fleet management app varies based on the chosen platform (iOS/Android). |
Android: $21,600 - $28,800 iOS: $22,400 - $27,500 |
Web development |
Web platforms are usually created for admin tasks (such as reporting and analytics) and often include backend development and cloud integration. |
$16,800 - $21,600 |
Maintenance & updates |
Regular updates, bug fixes, and/or feature improvements. |
15-20% of initial development costs annually |
Extra spending |
|
Varies based on scope and requirements |
Need an exact estimate for your app? Contact Mind Studios for a free tech consultation.
Hidden costs in fleet management app development
As you see from our abovementioned table, we included extra spending there, too. Many businesses that plan the fleet management system often just consider the initial budget and overlook some hidden costs that may arise both during and after the development.
However, such costs can disrupt your timeline and budget if you don't pay attention to them. Here are the most common hidden costs that many development companies do not talk about:
Adding extra features
Hidden cost: Extra development hours and resources to build and integrate initial features.
When the development process is underway, you may find extra features that are essential now but which you haven't considered before. This usually happens because your project requirements are evolving, for example, due to changes in market demands.
Starting with MVP and including only the most essential features first, and then expanding the features list based on the user feedback, might help in this case.
Testing and QA
Hidden cost: Additional testing time and tools to address unexpected bugs or other issues.
Fleet management software deals with real-time data (such as vehicle tracking or driver performance), meaning it needs rigorous testing edge cases, device compatibility, and bug fixes to stay reliable. That is why you have to allocate sufficient time and resources for testing to avoid possible costly post-launch fixes.
Data collection and scaling
Hidden cost: Cloud storage fees, server upgrades, or backend optimization.
As your fleet and operations grow, your app will generate more data. And the increased data silos can lead to extra storage costs as well as requires extra optimization of backend performance. To prevent this, you should opt for scalable cloud-based solutions with a modular architecture that can easily accommodate growth.
Employees’ training on the app
Hidden cost: Time and resources spent on onboarding.
Even if you develop the most user-friendly app with an intuitive technology stack, there are still chances it will require additional onboarding sessions for its users — drivers, managers, or other staff. If you don't train your employees, it may lead to user errors and, thus, delays. Instead, you should provide your employees with user guides, training sessions, and ongoing support.
Ongoing maintenance and updates
Hidden cost: Usually 15–20% of the initial development cost annually.
Of course, many clients expect ongoing maintenance. Still, they often underestimate the ongoing costs of keeping your app updated or adding new features. Our recommendation is to always plan for post-launch, making it a part of your development budget.
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Wrapping up
Undoubtedly, building a fleet management system is a significant investment that will define your business’s future. However, the path to it may be paved with numerous challenges, such as:
- Underinvesting in security may leave your software vulnerable to cyberattacks. Even a single breach can affect your reputation and cost you far more than implementing a robust security system from the start.
- Rushing through development and neglecting thorough testing can result in bugs, poor performance, as well as user dissatisfaction. Plus, it will disrupt your business processes and may erode trust among users.
- Opting for a cheaper and less flexible solution may save you money in the short term, but it will limit your ability to adapt as your fleet grows.
- Ignoring user feedback is yet another costly mistake you may make, as your managers, drivers, as well as end-users know what they need better than anyone else.
However, the most critical decision you have to make is probably to choose a reliable software provider. Partnering with a wrong tech provider, with limited expertise, poor communication, or lack of transparency, may cost you not only lots of money, it will also turn your vision into a frustrating ordeal.
At Mind Studios, we tackle both simple and complex projects and always deliver great outcomes, even under tight deadlines (just remember our James project!). Contact Mind Studios to get a precise estimate for your project and build your fleet management app with confidence.
