Ryder System Inc (NYSE: R) has launched COOP by Ryder (COOP, pronounced “koop”), a new asset sharing platform for commercial vehicles. The digital platform offers businesses the opportunity to list and rent underutilized commercial vehicles within a network of trusted peers.
There are more than 8 million commercial vehicles on US roads, and according to Ryder telematics data, approximately 25% regularly sit idle for more than one day a week, excluding weekends. COOP will allow fleet owners to generate revenue from these underutilized vehicles.
A 26-foot straight truck traveling 100 miles per day, for example, can generate lenders up to $3,300 per month. In addition, COOP will provide a new source of rental vehicles for businesses seeking additional capacity. COOP launched an initial market release in January in the Atlanta metro area with a group of more than 100 fleet owners. Based on this initial market launch, COOP will deploy a full rollout to the Atlanta market in April, with several other major markets anticipated in 2019.
How COOP works: Fleet owners list their vehicles on the digital platform, set vehicle availability for idle periods, and receive automated payments from a trusted business owner. Business owners seeking vehicles can search the platform by location for available vehicles, including vans, trucks, tractors and trailers, and pick up the vehicle from the listed location.
Ryder is positioned to launch COOP by leveraging its customer base of more than 200,000 vehicles, as well as its experience in commercial vehicle rental. All COOP users are vetted to ensure they comply with safety and reliability standards. Payment is automated and immediate upon the return of the vehicle. Each transaction is covered by physical damage insurance and a $1 million liability policy, and includes 24/7 roadside assistance.
COOP.com provides a chat feature, enabling visitors to chat with a customer service representative. Currently, lenders and borrowers are connecting by phone or via email, and as of May 2018, they will have the additional option of chatting with one another via the platform. At the close of each transaction, lenders and borrowers will have the opportunity to rate one another, helping ensure accountability and trust.
Currently a mobile-optimized website, COOP is anticipated to be available as a mobile application to both Android and iOS users in fourth quarter 2018.