Fleet telematics is the integration of GPS, vehicle sensors (OBD-II), and cloud analytics to monitor and optimize vehicle operations. Every vehicle broadcasts its location, fuel consumption, engine health, driver behavior (acceleration, braking, speeding), and mileage in real-time. Central dashboards aggregate this data to dispatch vehicles efficiently, predict maintenance, track fuel costs, and coach drivers. Companies like UPS, DHL, Uber, and Domino's use telematics to cut fuel costs 10-20%, reduce downtime, and ensure regulatory compliance (hours-of-service logging for truck drivers, GDPR for location).