 This is Ryde's second secret weapon, the unfulfilled need for fleet vehicles. I've used this automotive fleet as a source for this. I'll put a link in the description. Please subscribe. These guys are great. They really know what they're talking about. Fleet availability being as tight as it's been for the past two years has found that most OEMs are not soliciting new fleet customers. This is Mike Antitch. He's the editor of Automotive Fleet and that's a magazine and a website and a YouTube channel, I believe. Let's listen to what he has to say. You can use to be an ongoing series of unpredictable supply constraints and it appears that the current end user demand plus the growing volume of pent-up fleet demand on top of that could potentially exceed fleet allocation for the 2024 model year, especially if there's no downturn in the economy and retail sales remain steady. Plus, it just didn't seem realistic for the industry to revert back to a free-flow fleet ordering environment because it would invariably lead to early closures of fleet order banks similar to what happened at the start of the fleet ordering for the 2023 model year. If you remember, that was a pretty chaotic time. I believe it's a positive development that model year 2024 fleet ordering for some major OEMs will once again be based on a pre-approved allocation volume and some might disagree with me and I understand why. Admittedly, many fleets will not get all of the vehicles they need based on past experience with an allocation system, but it's better than being on the wrong side of an unexpected early closure of a fleet order bank. You might want to replay that. Features weren't met last year and they're going to an allocation program this year for the 2024 model. So in a fleet allocation environment, most OEMs require pre-approval to place orders based on an allocation determined by a fleet's past order volumes. And here's an example of an allocation process for government fleets looking to order the all-new 2023 model Ford Super Duty. So the Ford Super Duty will have a short model year with only a limited number of trucks being produced for the 2023 order cycle. So for example, the order banks for government orders for the 2023 Super Duty will open next Monday on November 28, 2022, and they're going to close on January 13, 2023. Each government fleet with a Ford FIN number, a fleet identification number, gets an allocation based on their average Super Duty purchases over the past five years. The actual allocation will be approximately 55% to 60% of whatever that average number is. And it's not uncommon for most OEMs to restrict fleet order allocations for their legacy customers. In fact, fleet availability being as tight as it's been for the past two years has found that most OEMs are not soliciting new fleet customers. So when you look at the ordering environment from a historical perspective, the transition to a fleet ordering allocation system has truly been a significant milestone that's never before happened in the history of fleet management. The last time end user demand exceeded production capacity was immediately after the conclusion of World War II. As auto manufacturers stopped for production and switched back to the production of automobiles, end user demand simultaneously spiked, primarily driven by the discharge of 12 million military personnel back to civilian life, and this unprecedented end user demand exceeded the production capacity of the vehicle manufacturers of that era. And in today's market, for the past two years, end user demand has likewise exceeded fleet availability, frustrating fleet managers when fleet order banks close early and unexpectedly. So in light of that history, and to try to bring fairness and order to the fleet ordering system, General Motors took the lead by implementing a controlled allocation system in the 2022 model year. And the purpose of the controlled allocation system was to bring order and a sense of fairness to the fleet vehicle ordering process, which had become a free-for-all as companies scrambled to submit orders to secure limited fleet inventory as soon as possible prior to order banks closing. And this is ICE inventory. And the introduction of an allocation system also eliminated the fear that mega-fleets could buy out sizable segments of a manufacturer's inventory, especially in vehicle segments that had limited model availability, such as the commercial van segment. Okay, so I'm just going to stop that for a second there. This is limited availability among ICE vehicles. There are carbon reduction requirements for BEV vehicles, talking about limited availability. And you know, Georgetown Motors basically is the only new fleet availability on the market. Bright Drop has made some big claims, but if you read into them, they aren't what they seem to be. That's over a period of years. So I believe, and we can listen to a little bit more. This is a great channel, by the way. I believe that no fleet customers because they have this allocation system in place. All the OEMs, none of the OEMs are taking new customers. They are limiting the amount of trucks you can order. And the availability is only going to be 50% to 60% of what you got in the past. And they haven't been able to get fleet trucks for two years, three years now. So as he said, there hasn't been this big of a shortage since World War II. World War II was the consumer automobile industry that had to catch up. In this case, it's the fleet manufacturing industry that has to catch up. This is the biggest shortage the fleet industry has ever experienced. And Lordstown is going into production right in the middle of all of this. The OEMs are not taking any more new customers. You're not a customer. You're not going to get any allocation. And the allocation is going to be based on a, you know, up to 50% reduction over what you received in the past. So let's just hear the rest of this a bit more of this. Today, almost all OEMs require that you place fleet orders through an allocation system that's based on a variety of criteria ranging from your past historical ordering volume to how long you've been a customer of the OEM, along with other criterion that are developed in consultation with the OEM fleet account manager. So one consequence to the allocation system is that many OEMs are reluctant to accept new fleet accounts because they need all of their production to meet the needs of their long-time legacy customers. So recognizing that this occurs and recognizing that the fleet allocation system will be carried over to the 2024 model year and makes it crucial for fleet managers more so than ever to plan early. An OEM allocation approval system is primarily designed for high-demand fleet models. With this in mind, when you begin planning for your 2024 model year acquisition needs, you'll need to speak with your OEM fleet account manager even earlier than ever. Okay. I think everyone can see where this is going. I would submit to you that the OEMs are even creating a shortage to take advantage of the situation. But the model year 2023, the model year 2024, the fleet industry is experiencing a shortage of vehicles and this is ICE vehicles and there are even 10 orders of magnitude fewer B.E.V. fleet vehicles out there. And they are also in high demand. I'm going to try to put a bit in here about the demand for fleet B.E.V. vehicles. But I've done many videos on this in the past. Anyway, this is why large-time riders is going to kill it. When they mentioned it in the slide deck for the annual report that there was significant interest, they're understating it. No new customers, even existing customers, they're going to give you 50% to 60% of what you got in the past. And the new battery electric vehicles, oh my goodness, are you going to be able to get any? Large-time riders is in the driver's seat here. Let me just go to the close on this and see if there's anything of interest here. Important consideration is that the ordering environment that we're experiencing today and have been experiencing for the past two years will most likely persist in varying degrees for the next several more years. The existing volume of pent-up demand promises to impact future new vehicle ordering. So to put it in context, since 2020, the combined retail and fleet markets together have a backlog of approximately 5 million vehicles. And the whittling down of this accumulated industry-wide pent-up demand on top of the industry's normal replacement volume will be a multi-year process. So with this as my final observation, I'd like to conclude my State of the Fleet Industry presentation for the week of November. So, it looks like large-time riders has blue water, a clear lane for multiple years to sell as much production as they can make. And this, by the way, is an authoritative source on the fleet industry. Okay. When you do research on the new forecast for fleet vehicle demand, you'll only find very expensive cutting-edge reports the research is. Out of date, it is moving so fast that there is no public research on this. These are expensive, private research reports. There was one little snippet I read which is predicting a 30% CAGR. Might be more. I just want to give some examples of the demand that's bubbling away under the surface there for electric vehicles. Here we go. Biden says he will replace the entire federal fleet with electric vehicles. All right. There goes one. And here you go. Electric vehicles for federal fleets. This is what we're talking about here. There's a whole program set up for that with the federal government. These 21 companies are switching to electric fleet programs. And here they are. Amazon AT&T, Best Buy, CEMEX, Clifar, Comcast, Consumer Energy, DHL, Duke Energy, FedEx, Frito-Lay, Genentech, Hawaii Department of Transportation, Heathrow, Hertz, IKEA, Lease Plan, Lime, Pepsi, Verizon, and Waste Management. Hertz, by the way, Dan Neavazhi was a chairman of the board there, I believe. And this is October 26, 21. Again, out of date. You can't find the latest stuff is all expensive. And I just want to say, you got federal fleets, you got private fleets, and you got public fleets. And these are electric vehicle fleets for cities and so forth. And there is unlimited demand that's not being met here because there's carbon reduction programs that demand an increasing percentage of all these vehicles be BEV. And there is no supply. And you can see the fleet industry is getting, you know, limited allocations. The suppliers are not offering any new customers. They're not allowing new customers. So anyway, my two cents on demand here, it's, you know, completely unmet. Let's call it that. Unlimited infinity at this point. In my opinion. Okay. This next section illustrates how expensive the most current research on BEV fleets is. Okay. This is an example of energy. I just want to say, you know, say, oh, yeah, they're expensive. Blah, blah, blah, blah, blah. Ask for discount. Electric commercial vehicle by market vehicle type. Battery component range region to 2030. Blah, blah, blah, blah, blah. They got a keger here of 34.4% during the forecast period. That's for the next eight years. Here's the price. $5,000. $5,000. Okay. So this is how quickly this is moving. They're getting a $5,000 price for their reports. And again, we can just say here, revenue keger of 34.4%. Commercial vehicle market was $56,021 and a revenue keger of 34.4% during the forecast period. So year over year growth for the next, according to this, nine years of 34%. So here's the chart. Registered keger of 30.4.4, so forth and so forth. But I just wanted to give you an idea of what's going on and how fast this is moving. And all this smells to me like this massive sales potential. Okay. After one ship was sunk by a mine, other Union ships began to pull back. When told why his ships were leaving, Farragut shouted his immortal command, damn the torpedoes, go ahead full speed.