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Auto Makers Threatened By Both Tech Company Autos And Ridesharing (caranddriver.com)

Posted by EditorDavid on from the drivers-wanted dept.

An anonymous reader quotes Car and Driver: For automakers, the first bit of bad news is that people seem quite receptive to buying a vehicle from a tech brand such as Apple or Google, according to Capgemini's 17th Cars Online report, which surveyed some 8000 consumers in eight countries... Consumer interest in buying cars from tech brands has grown from 49 percent in its 2015 study to 57 percent in the latest report... There is also the growing popularity of ride-sharing services offered by the likes of Uber and Lyft. Fewer people will feel the need to have their own car if it's easy and inexpensive to order up a cab on their smartphones. Capgemini's survey found that 34 percent of car buyers see ride sharing and related services as a genuine alternative to owning a vehicle.

5 of 115 comments (clear)

  1. So join them by ranton · · Score: 4, Insightful

    The car companies already realize all of this, which is why they are also getting into the autonomous car and ride sharing business. They are late though, and they will probably move too slowly because of fear of cannibalizing existing sales. But they at least see the writing on the wall so time will tell if they can get their act together in time.

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    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
    1. Re:So join them by Bender0x7D1 · · Score: 5, Insightful

      A normal car is idle 95% of the time, so a ride-share car that is idle on 50% of the time, can replace 10 normal cars.

      You assume an even distribution of use. However, 99% of cars are idle at 3:30am; but only a small percentage are idle during rush hour.

      The only way that will change is if we have a massive shift in how people live, work, and socialize. However, even then, most people will be active during the day - and at home at night. Which will still skew the demand curves.

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      Reading code is like reading the dictionary - you have to read half of it before you can go back and understand it.
  2. The real big advantage of tech companies. by 140Mandak262Jamuna · · Score: 4, Interesting
    There are many advantages of tech companies. They are used to stiff competition, fast life cycle of products, etc etc. But the biggest advantage they have is, they would not be running the race with 25 lb dead weights strapped to their ankles, so to speak. The past agreements the automakers have made with the National Association of Automobile Dealerships are extremely one sided and very onerous. NADA has the monopoly of all the autos made/imported into the USA. They have extraordinary political clout, some are exempt from the monopoly and restrictive trade practices act, and they are a strangle hold on the manufacturers.

    Their clout is so high, it is not being talked about as much as the pension obligations of the big three, or the clout of labor unions over the manufacturers. If the cars made by tech alliance by passes the NADA, it would be a boon to the consumers.

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    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  3. Re:When haven't car companies felt threatened? by Anonymous Coward · · Score: 4, Informative

    It's pretty hard to fail when the government decides you're never allowed to fail and will bail you out.

  4. Re:And this is why software engineers are idiots. by sinij · · Score: 5, Insightful

    The other 99% is market hype and bubbles.

    When I am buying a dishwasher, a pair of shoes, or a car I want hardware. It is CRAZY to force me into SaaS or Cloud or even just apps in these cases. This is pets.com all over again.