Can’t go it alone: GM and Honda and the future of self-driving

Honda is helping GM on its mission to lead the quest towards a self-driving future. From WIRED: “In a deal announced today, the Japanese automaker will help San Francisco-based Cruise and its Detroit owner develop and mass produce a new sort vehicle for a world in which human drivers are no longer needed. Honda is opening its checkbook too, pledging to spend $2 billion on the project over 12 years, and immediately putting a $750 million equity investment into Cruise.

…For Honda, the partnership offers entree into a self-driving space where it has thus far spent little time and effort. For Cruise and GM, the newcomer adds engineering know-how as it moves to develop the self-driving car that will replace its current model, a modified Chevy Bolt EV.” Much of Honda’s engineering know-how will be of value for the interior design of the vehicles; once the driverless tech is ready, the ridership experience will hinge on the interior design of the vehicle, much like airplanes today.

WHY IT’S HOT:

In addition to being a somewhat a surprising global partnership, the joint venture between Honda and GM shows that to pioneer the future of driverless vehicles, you can’t go it alone. Strategic partnerships across financing, engineering, and manufacturing will become the norm in this race to the future, particularly due to the fact that no one knows how/when driverless will make money. This deal helps de-risk GM’s path to scale its operations into driverless with a partner that will help it execute long-term.

SOURCE: https://www.wired.com/story/honda-gm-cruise-self-driving-cars/

GM brings Dunkin’ Donuts, Starbucks Ordering to Cars

General Motors is launching a new in-vehicle app named Marketplace that will allow drivers to pay for goods such as gasoline or coffee and schedule service through their infotainment systems.

The automaker expects the free technology, which it is calling an industry first, to quickly expand from about a dozen offerings, such as ordering Dunkin’ Donuts or reserving a table at TGI Fridays, to other services such as Starbucks orders and dealership services, including oil changes.

“We are using it also to improve how our customers interact with the vehicle and the dealership network,” says Santiago Chamorro, GM vice president of global connected customer experience. He emphasized the connections are secure, and Marketplace is not meant to be an in-vehicle digital billboard.

In-vehicle marketplaces and app-based services have been discussed for years. Offerings such as Apple CarPlay and Android Auto mirror smartphone apps onto the vehicle’s infotainment screens but do not complete financial transactions.

Some services such as ordering Dunkin’ Donuts for pick up require drivers to have an account or profile with the store. Marketplace uses recent and favorite foods and settings from the profiles to customize the offerings for the driver. Deals and membership rewards are currently available from gas stations. Paying for gasoline is expected to be available early next year.

Dealership services such as scheduling oil changes or other maintenance are expected to be added as early as next year. Vehicles will have the capability to alert drivers of needed services and schedule them, if the driver would like.

Other current partners with Marketplace include Wingstop, Shell, ExxonMobil, Priceline.com, Parkopedia, Applebee’s, IHOP and Delivery.com. Starbucks is expected to be added in early 2018.

According to Consumer Reports, though, “The bad news is that in its current state, there’s not much reward for drivers to actually use it—though the automaker promises that will change soon as it adds more options and retail partners….Ultimately, instead of opening up an e-commerce gateway, GM Marketplace acts more like a middleman with limited options, at least in its current state.”

Source: AdAge

Why It’s Hot:
Automotive innovation is not only about self-driving technology, but about retail and the new consumer expectations brands need to meet. The opportunity for e-commerce to be at your fingertips even while driving may open up more geo-fenced, trackable marketing opportunities.