such video. Today, Nixon says, “We are in the prevention business. We try to prevent crashes. That’s how we drive down the cost of claims.”
Nixon says DriveCam has integrated a variety of technologies so the company now provides both a product and a service for its target market, which consists mostly of big companies that operate fleets of vehicles. Today, DriveCam’s camera module includes a motion-sensitive accelerometer chip (similar to the Nintendo Wii) with proprietary technology that records and saves the video from an accident or erratic driving incident. The event recorder uses a wireless cell phone network to transmit the video clip to a DriveCam data center, and the company has developed software to help “score” the incident. The company also has developed a Web-based, software-as-a-service application to help fleet managers review the incident, coach their drivers and to develop long-term data that helps a customer identify their riskiest drivers, riskiest delivery routes, and riskiest vehicles.
With the integration of technologies already in place, Nixon says he joined DriveCam for three reasons.
The first is the company’s potential market. While DriveCam has installed about 100,000 of its video modules in taxis, delivery vans, utility trucks and other fleet vehicles, Nixon estimates there are 2 million fleet vehicles in the United States alone. The company is currently focused only on the U.S. market, but Nixon added, “Most of our clients are multinational, so they pull us sometimes into foreign markets.”
His second reason is that DriveCam’s subscription service provides recurring revenue, “which is a business model that I have grown to love,” Nixon says.
The third reason is what Nixon calls DriveCam’s value proposition. “It’s undeniable and proven that we’ve cut our clients claims costs in half,” Nixon says. “Most of these fleet operators are self-insured. So it’s a value proposition that sells both in a good economy and the economy we have today.”
