On Tuesday, the automaker has announced that it would integrate e-commerce technology on the dashboard of the new upcoming cars, the company hopes it would be profitable as drivers need to order food online, find a hotel room for them, buy a ticket or find a gas station by just tapping the icons on the screen. Instead of using smartphones while driving the drivers can leverage the benefits of dashboard e-commerce platform in G.M cars—said Reuters.
International Business Machines (IBM) has collaborated with General Motors to develop this technology, the platform would be featured in 1.9 million cars of model 2017 and later and available immediately. The platform would be available in 4 million vehicles across the models including brands GMC, Cadillac, Buick and Chevrolet in the United States by the end of 2018 said GM.
With this feature, GM would be benefitted of course however, the amount of revenue/commission from various merchants that will be featured in its in-dash marketplace is not revealed according to Santiago Chamorro, GM vice president for global customer experience. The good news is; customers wouldn’t be charged for data or using the platform, it is totally free of cost service for customers, Chamorro added while talking to the reporters.
The platform is actually financed by the merchants, GM would get paid for adding apps of merchants on its platform, revenue sharing between GM and merchants is also there on each transaction, he said.
The vice president said it would be too early to comment on the revenue GM would be able to make out of these transactions.
But it seems GM is likely to generate handsome revenue from this platform.
However, the competition is tough; GM is expected to compete with smartphones that are packed with applications that are richer as compared to GM system. Moreover, people are now accustomed to smartphone usage and data availability is not even an issue. Changing people’s behavior to get them on dashboard e-commerce would be a real challenge for GM.
On the other hand, Amazon is partnering with other automakers including Ford Motors in order to offer customers in-car e-commerce through Amazon’s Alexa system.
GM will launch its marketplace with just Exxon Mobil and Shell in the fuel category and the only restaurant currently available for reservations is TGI Friday’s chain. Additionally, there are some other useful apps such as parking, coffee shops such as Starbucks, Applebee’s and Dunkin Donuts.
GM will gradually add more vendors as the service launches, in the first quarter of 2018 more vendors would be added to the list said, Chamorro. We will also expand the service integration to News, Music and other information services, he added.