Business with the Autonomous Vehicles Industry

31 January 2018

How to conduct business with the Autonomous Vehicles Industry…Definitely not by only selling the cars.

Before you start thinking of any sort of business transaction with the industry it is crucial to consider 2 vital elements.

Firstly, with whom in the complete value chain do you wish to conduct business with? Secondly and more importantly, Do you want to increase customer loyalty, or do you want to create new revenue streams?

It is obvious that end customers will expect much more from full connected and autonomous cars, than only driving them. Additional services in the light of full and integrated mobility, which makes the planning of the journey, the journey itself and other things around this more convenient will be the key for success to sell the complete package – vehicle plus services.  A lot of people thinking one of main applications will be the navigation. That is actually questionable considering, people will be hesitant to pay for the navigation system provided by the car makers when they already may be able to have several free Apps on their smart phone which pretty much do the same job.

Autonomous vehicles will indeed come into mainstream very soon and save us much time and costs.  We have all spent countless hours in traffic jams and motorways on both personal and business trips. So autonomous cars will provide us the chance to use our time in the car much more efficiently than today and enjoy our driving, even in overloaded cities or on highways whilst also be productive.

When in comes to business, OEMs have to make clear and carefully planned decisions of either creating additional revenue streams or differentiating from the others with additional services which are free of charge but which in turn could help to increase customer loyalty in the future and help build a brand. Also building communities where “cars” can exchange useful information, such as free parking spots, or road closings or accidents would be useful.  Just think about the marketing campaigns and ads in TV. All OEMs market their new models with the set of functionalities for navigation, autonomous driving, entertainment and not anymore with the classical arguments of horse-power, newton meter, etc..

What are the areas for these services?  Probably infotainment/entertainment and everything in relation to mobility. Finally, everything which makes the journey more productive or more relaxing. This also leaves room for non-automotive companies when the OEMs will take too long to offer such services. Why? Because a lot of these services do not really require a level 5 vehicle.

The discussion will be continued. Check regularly.

Article by Michael Zimmermann

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