Telematics is a field of science that joins telecommunication, vehicular technology and computer science. In the broader sense telematics refers to any technology or system that merges telecommunications and informatics, from GPS systems to wireless data communication. However, it is mainly known as a method of monitoring vehicles. That technology combines a GPS system and on-board diagnostics. The users can record and map the vehicle’s location, speed, and movements and cross-reference it with how the vehicle is behaving internally. Then a communication device is used to send that information back and forth between the vehicle and a central management system.
In car rental, telematics is used for fleet management—mainly for tracking and diagnostics of vehicles. The technology has also enabled car-sharing services by making it possible for companies to track the usage of vehicles and bill the customers accordingly.