Business with the Connected & Autonomous vehicle industry PART II

4 April 2018

Connecting the car is pivotal part of enabling the industry’s transformation. Vehicle-to-everything (V2X) communication is the key point to make intelligent mobility systems work and enhance autonomous use cases whilst allowing for new business models around the vehicle to be created.

Services like usage-based insurance (UBI), in car delivery services, car sharing, ride-sharing or ride-hailing are in discussion, under development or already on the market. The majority of business innovation will happen outside the OEM. Independent companies will run their business on top of the vehicle platforms that OEMs will operate. Therefore, it becomes important for any OEM to develop a strategy to open the car platform in a controlled way and to participate in this business while at the same time making use of their fleet  – which is on the streets – in an intelligent way. In addition, OEMs will be seeking additional revenue streams besides car selling by this point already.

However, selling cars will also be the main revenue stream for OEMs and the base for offering further services in the not so far future. What will be the key aspects that affects people in their final decision to eventually purchase a car? Nowadays factors such as acceleration, shape and sportiness are not necessarily the main drivers for purchasing a new vehicle. “Millennials” have validly demonstrated their decision process is somewhat different and there are other priorities in their life nowadays and car ownership is not necessarily that important.

It seems that criteria nowdays in terms of significance to are:

  • How easy I can plug in my smartphone? Is my playlist available in the car? Do I get real time traffic data, so I can avoid any traffic jam? Do I will get a reduced fee for my insurance when I have a certain driver profile? Can I  integrate the navigation system with my calendar? 

Enablers for new mobility concepts, which are user centric are the following:

·       Digitization and high-speed computing

·       Wireless connectivity (5G)

·       Accurate and affordable sensors

·       Location data

·       Expansion of/to social media

·       New pricing models and schemes (Usage based)

When discussing all this one main question arises. Who will own the customer data and what will be done by whom with all these data? This will become even more intriguing as such when data collected by the car are combined with user data from social media. Do I need to remind you of the latest Cambridge Analytica-Facebook scandal?

Twenty-five gigabytes of data are uploaded by a connected car to the cloud every hour. What’s the car telling the network in such great volume and to which cloud is the data transmitted? The short answer is: data about everything. Its route, its speed, the wear and tear on its components, and even road conditions. Vehicles today have about 40 microprocessors and dozens of sensors that collect telematics and driver behaviour data and that data can be analysed in real-time to keep the vehicle’s performance, efficiency, and safety in check. It also provides vital feedback for cities and states about traffic volume and roadway design.

So finally it is not only one cloud or party the data are transmitted to.

Article by Michael Zimmermann

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