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Rightsizing your fleet: Why more vehicles isn’t always the answer

March 4, 2025

Vehicle over and underutilization due to a misaligned fleet size can lead to greater maintenance and operation costs down the line. This makes knowing how to right-size your fleet a critical skill for managers.

Jeff Nieman

Related To: Merchants Fleet

What you'll learn:

How fleets that are too large or too small can impact your business
Tools and processes to help a fleet rightsize
The benefits of fleet rightsizing

Today, efficiency is the new growth strategy, as many businesses increasingly prioritize efficiency over expansion in today's evolving economic landscape. Rightsizing isn't about arbitrary reductions; it's about ensuring each vehicle serves a strategic purpose, aligning fleet size with demand, operational requirements, and cost-effectiveness.

The U.S. truck leasing and rental market was valued at approximately $3.41 billion in 2023 and is projected to reach $4.97 billion by 2029, growing at a compound annual growth rate (CAGR) of 6.55% during this period. Traditionally, fleet growth was synonymous with business success. However, current economic indicators suggest a shift. Rising operational costs, fluctuating fuel prices, and supply chain challenges have prompted fleet managers to reconsider the sustainability of maintaining oversized fleets.

Rightsizing—aligning your fleet's size and composition with actual operational needs—has become a focal point, especially as companies explore flexible, on-demand mobility solutions. For fleet operators, this means reassessing fleet sizes to optimize productivity and control costs.

The hidden costs of an oversized fleet

Maintaining an oversized fleet can lead to several inefficiencies, including:

Elevated ownership and leasing expenses: Underutilized vehicles still incur leasing fees, depreciation, and financing costs.
Increased maintenance and repairs: A larger fleet results in higher maintenance expenses and unplanned repairs.
Excessive fuel consumption: Unnecessary vehicles contribute to increased fuel usage, impacting operational costs.
Operational complexity: Managing a surplus of vehicles adds administrative burdens, requiring more staff and resources.

Strategies for effective rightsizing

A data-driven approach to fleet size can lead to significant cost savings and operational improvements. Implementing a successful rightsizing strategy involves many of the following imperatives:

Analyzing fleet utilization data: Utilize telematics and fleet management software to assess vehicle usage patterns. Metrics such as miles driven, idle time, and trip frequency can identify underutilized vehicles. Notably, 83% of fleet operators now use telematics to monitor such data, according to Expert Market.
Adopting flexible mobility solutions: Consider vehicle-sharing strategies that can significantly enhance fleet utilization, control budgets, and reduce environmental impact. A key component of this approach is Mobility-as-a-Service (MaaS), which integrates various transportation services into a single accessible platform.
Implementing predictive maintenance: Leverage predictive maintenance technologies to anticipate and address vehicle issues before they lead to breakdowns, thereby reducing downtime and maintenance costs. This proactive approach ensures vehicles are in optimal condition, supporting efficient operations.
Aligning fleet composition with operational needs: Evaluate whether your fleet has the appropriate mix of vehicle types and sizes to meet current operational demands efficiently. This may involve replacing larger, less efficient vehicles with more fuel-efficient models or integrating electric vehicles to help reduce emissions and fuel costs.
Integrating advanced fleet management technologies: Embrace technologies such as AI and IoT to enhance route planning, monitor driver behavior, and improve overall fleet efficiency. Integrating these technologies can change fleet management systems, leading to more informed decision-making and optimized operations.

Competitive advantages of rightsizing

Companies that effectively rightsize their fleets benefit from cost savings, increased flexibility, and improved efficiency. They are better positioned to adapt to market changes without the burden of excess assets.

Empowering fleet operators and managers with the insights and tools needed to optimize their operations and achieve their business objectives is critical to their success. Our commitment at Merchants Fleet is to do just that – to provide data-driven fleet solutions, flexible vehicle leasing and rental programs, and strategic advisory services to assist businesses in rightsizing their fleets.

Is it time to rightsize your fleet? If your fleet isn't optimized for efficiency, now is the time to act.

About the Author

Jeff Nieman | Senior Vice President and COO

Jeff Nieman serves as the senior vice president and chief operations officer at Merchants Fleet, where he oversees all operational functions, driving innovation and aligning strategies with the company’s mission to deliver exceptional client experiences and fuel growth in the evolving fleet management industry.

Prior to joining Merchants Fleet, Jeff held several key leadership roles at Hertz, where he gained extensive experience managing large-scale operations and implementing strategic initiatives. Over the course of his tenure, Jeff successfully led teams responsible for optimizing product operations, advancing field technology, and maintaining critical infrastructure. He also oversaw operations across multiple regions, managing sizable fleets and large employee teams while ensuring operational excellence and fostering innovation.

Jeff’s broad expertise and leadership in navigating complex operational challenges make him an invaluable asset to Merchants Fleet as the company continues to lead the industry with forward-thinking solutions.