Vehicle-installed GPS Tracking vs. Cell Phone-Based Tracking

Two types of GPS tracking technology

If you’re a business owner with 2 or more vehicles, you’re likely already aware of the reasons why you should use a GPS vehicle tracking system. 

But what kind of technology is most appropriate? You have two options:

1. Systems where you place a GPS tracking device in your vehicles — Once plugged into your vehicle, these devices work silently in the background to communicate their GPS coordinates over a 4G network. There’s no reliance on smartphones at all.
2. Systems that track the driver’s smartphone (no GPS device in the vehicle) — With these products, each driver has to install an app on their smartphone. The cell phone’s data connection is used to communicate the GPS coordinates. These systems might be sold as standalone apps, or they might be bundled in with other software your business already uses, such as field service management software or time tracking programs.

Vehicle-installed GPS tracking vs. cell phone-based tracking: what’s the difference?

While the two systems may sound similar, the big difference is what you’re actually tracking.

With vehicle-installed GPS tracking systems, you are tracking the vehicle, which is a valuable piece of company-owned equipment. 

With cell phone-based tracking, you’re tracking the person, whether they’re inside the vehicle or not. No matter whether the phone is owned by your company or your employee, this method is likely to raise privacy concerns and may not be well-received with your drivers. There may also be legal barriers — see our summary of the laws around employee tracking in the USA. 

Which technology is better for your business? 

Vehicle-Installed Device vs Cell Phone-based

Tracking Hardware – 4G GPS devices that plug into the OBD-II port of your vehicles. None (just employees’ cell phones)

What you’re tracking –Tracking the vehicle vs tracking the employee.

Privacy – No privacy concerns: you’re tracking the vehicle, a business asset that you own and operate. Employees could have privacy concerns about the employer tracking their personal phone. 

Ease of setup –No action required from employees. Business owner simply plugs GPS device into the vehicles OBD-II port. With cell tracking it requires each employee to opt in to tracking.

Tampering – You get an instant alert if the GPS device is tampered with or removed from the vehicle. Tracking on the phone can only occur when the employee’s phone is on and the app has GPS permissions. 

Battery –GPS devices are powered by the vehicle and include wireless connectivity — without depending on any cell phones. Cell tracking depends on the employee’s cell phone being charged. 

Driver safety- Strong driver safety features are available.

Vehicle health –Get a wide range of vehicle health information including engine codes, recalls, and critical battery or fuel level alerts. No vehicle health information with cell tracking.

Vehicle security –Get instant alerts if any of your vehicles are bumped, towed, stolen, etc. No vehicle security information with cell tracking.

Legal considerations –No legal complications when tracking company-owned vehicles. Legal considerations depend on the state; may require written permission from the employee.