A number of operators that use the GlobalLive telematics service are unhappy with rate increases being instituted by its new owner, Causeway Technologies. Causeway bought the trade and assets of GlobalLive on 22 May after the telematics specialist experienced cashflow difficulties (MT 28 May).
A week later, Causeway director Peter Nagle told GlobalLive users in a letter that the current service would continue on a goodwill basis while a "commercially viable" offering was formulated (MT 4 June).
MT has now seen the latest letter sent by Causeway to GlobalLive users that details the rate increases. The letter states that because the vehicle tracking units supplied by GlobalLive are no longer working and cannot be repaired. Causeway is prepared to install replacement hardware, "and without predjudice will offer to meet half the costs of the replacement, the total cost of which is £348".
This means GlobalLive users would need to pay £174 per unit, or pay £2.90 per month, per unit over the five-year term, in addition to the connectivity charge. That latter charge has been raised; the letter states: "Causeway has been funding the continuity of service on a goodwill basis, and to date a full service has been provided at no cost to the customer base. Clearly, this is no longer equitable.
"All customers are advised that in addition to their existing financial arrangements, a small sum will be required to ensure continuity of connectivity and mitigate the costs. The actual costs associated with connectivity are £6.37 per month per unit."
Thus, GlobalLive users are being charged an extra £9.27 in total per unit, per month.
One operator tells MT: "Our options were to continue with GlobalLive/Causeway and pay the extra, or find a new supplier, which would have incurred even more cost as we would still have had to see out the full leasing term, or not have a tracking system at all. We're now a disgruntled 'new' Causeway customer."
Several other operators noted their dissatisfaction, but were not prepared to be quoted until their negotiations with Causeway are concluded.
Causeway director Peter Nagle, tells MT: "We have all the key ex-GlobalLive staff engaged on helping all GlobalLive customers deal with the fallout of the failed supplier. The recovery option from Causeway is based on real costs that must be dealt with in order to allow the service to continue."
Causeway is also offering customers a free upgrade of the GlobalLive software.
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