Earnings increasing & multiples expanding (Re-rate commencing), page-902

This may help you understand the technology.

What CXZ has done with GM is create a customised technology for their fleet management (so we are talking about dealerships). It is a B2B (business to business) solution. So the technology is not comparable to getting into a BMW or mecedes and asking what tech/telemetry does this car have?

CXZ haas made a customised ONtrac system developed for GM, (it is part of their OnStar system). It is not a product that they then sell to BMW/Merc/Ford/other companies.

This means... from a GM perspective (they could move on from CXZ.

What GM get from CXZ...

• Cost savings 9at a fleet management level) from advanced tracking of fleet management. @thisfool369 mentioned earlier, (in another post he describes the tech well) the cost benefits of accurate tracking with regard to maintenance, turnover of new cars, dealers being able to compare between other dealers on fleet of cars.
• A customised tech system that works with the car's system (just for them), within their system.
• 
  

From a CXZ perspective...
Further business comes from these areas

1. in other geographic areas within GM (Australia/South America, etc)
2. Expanding to include other GM brands.
3. Expanding to other companies.

So GM could cut ties with CXZ, however GM also have significant buy also, since
... this system has had two years of development.
... customised just to their system.
... Barriers to entry (posted below)

Frankly, I just can't see that happening, (the risk is there however quite low).

Therefore, when you ask, what are their competitors? You need to know they are selling a service not a product.
For comparison...
Product perspective: GM management...lets just change all our computers to this new computer (this one is better/cheaper whatever). Too easy swap them out.

Service perspective: GM management... let's change a part of our software... (this other one is better/cheaper/whatever). Well now, we need to overhaul this part of the system and that part, and this part needs tweaking, and we need developers for this part, and so on.
They could go to another SaaS provider, you do the job, why though?




another little note - Further revenue sources
Keep in mind, Telemetry is just one area of revenue for CXZ. deals in three areas of technology for companies...

1. Custoimsied telemetry (what they did with Gm)
2. Analytics
3. Consulting

This means some of their revenue is gleaned around categories 2 and 3, on top of current arrangement with GM. \

If you wanna know a bit more just look at 2019 Nov AGM presentation. Simple slides to understand

DYOR and all that.