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Wide open prairies of the US are calling for Cartrack



Wide open prairies of the US are calling for Cartrack

Asia Pacific quickly became the second-largest market segment for Cartrack. Now it’s gunning for bigger game

Marc Hasenfuss

The profit centre for Cartrack Holdings, the vehicle recovery and fleet management specialists, still spins mainly in the SA market. But the company’s offshore forays are becoming much more meaningful and it may be worth paying particular attention to the US market tilt in the next five years.
Cartrack’s recent investment in the US has largely been in research and development – which, of course, is key to the group’s successes in the telematics industry. But some punters may be disappointed that the group has not found more operational traction in this key market.
There is, however, some good news in the region as the company looks perfectly placed to capitalise on the “3G sunset” expected to transpire in 2020. The vast majority of the competitors’ existing subscribers are still using 3G devices, which will soon become obsolete and will require a replacement technology.
If Cartrack can lock into the new technological wave in the US telematics market then its US operations might start off with a dash of speed.
Some observers might regard the competitive US market as a bridge too far for Cartrack, but one needs to remember the group has achieved remarkable success in some of its key offshore markets. For instance, the Asia Pacific market has become the second-largest market segment for Cartrack in a fairly short time.
Admittedly, the US market might be tougher, but success will no doubt bring Cartrack to the attention of the many tech-appreciative US investors. Rival MiX Telematics is already a darling with certain US small cap investors.

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