Smartcar is partnering with Azuga, a leader in connected vehicle solutions, to power road usage charge programs in several U.S. states. Azuga uses Smartcar’s technology to let drivers opt in and share their vehicle mileage with their state’s Department of Transportation.

The rise of road usage charge programs

With an increasing share of fuel-efficient and electric cars on our roads, state governments collect less gas tax revenue and struggle to fund road maintenance projects. As the gas tax is no longer sufficient to fund all road infrastructure, Departments of Transportation across the country test and refine road usage charge programs as an alternative. Road usage charge is a per-mile fee that drivers pay depending on how much they drive. Apart from acting as a sustainable funding mechanism, per-mile fees are also fairer than the gas tax, charging drivers based on how much they use the roads instead of how much fuel their cars consume.

Azuga Insight, a sub-brand of Azuga, has been working closely with Departments of Transportation to create and execute pilot programs for road usage charge. The company decided to partner with Smartcar to lower administrative costs, create a convenient participation option, and to guarantee tamper-resistant technology.

Smartcar powers Azuga’s road usage charge solutions

Over the past five years, Azuga has used Smartcar’s APIs in its road usage charge programs in California and Oregon. The company now plans to expand its use of the Smartcar platform to programs in several other states.

“We’re excited to see Azuga deploy our technology in additional states to power fair, sustainable, and efficient ways to fund road infrastructure,” said Smartcar CEO Sahas Katta. “Road usage charge is one of the most promising developments in today’s transportation landscape, and we’re glad to be a part of it.”

Smartcar’s technology allows Azuga to cost-effectively and reliably retrieve telemetry directly from 2015 and newer vehicles. Drivers opt in to share their mileage with just four clicks from their phones. Azuga then uses Smartcar’s APIs to accurately monitor each vehicle’s odometer reading and calculate the driver’s per-mile fee.

Drivers opt in to share their mileage with just four clicks from their phones.

In programs where Azuga has implemented Smartcar’s solution, the company has been able to reduce hardware and data acquisition costs while increasing driver satisfaction.

“Smartcar has enabled us to build the most innovative road usage charge programs in the country,” said Azuga Vice President Nate Bryer. “Over the past five years, the platform has gone from one to 19 compatible vehicle brands and built out an impeccable car owner experience. Today, we’re able to connect to over 60 million cars in a single integration. We can’t wait to see where our partnership will take us from here.”