Joe Apprendi is a general partner at Revel Partners.
More articles by this contributor
A future controlled by autonomous vehicles (AVs) is, for many experts, a foregone conclusion. Declarations that the car will turn into the next living room are almost as however, they are imprecise. Within our inevitable driverless long run, the more apt comparison is to the device. Much like smartphones, working systems will go a long way toward determining what autonomous vehicles really are and what they could be. For mobile app firms hoping to grab on the upcoming AV opportunity, their future is dependent on the OS landscape shapes up.
By most measures, the app economy is increasing, however the time individuals spend with their apps is actually starting to dip. A recent study reported the overall app session action grew just 6 per cent in 2017, down from the 11 percent growth it reported from 2016. This tendency indicates users are reaching a saturation point concerning how much time they can devote to apps. The AV industry could reverse that. But how mobile apps will penetrate this sector and that will hold the keys in this new age of freedom is very much in doubt.
Numerous variables are now converging If it has to do with a long run. Over the past couple of years, while app usage showed signs of stagnationthat the drive to get driverless automobiles has just intensified. More towns are live-testing driverless computer software than ever, and investments in autonomous vehicle technology and software by tech giants such as Google and Uber (quantified in the billions) are starting to mature. And, after some reluctance, automakers have embraced this notion of a driverless future. Expectations from all sides point to a “passenger market ” of mobility-as-a-service, which, with some quotes, could be worth as much as $7 trillion by 2050.
For mobile app firms this indicates several intriguing questions: Will smart cars, such as smartphones , be forced to go “exclusive” with just one OS of document (Google, Apple, Microsoft, Amazon/AGL), or are they able to offer many OS/platforms of record according to app adulthood or functionality? Or, how will automakers step in to create their own closed loop operating systems, fragmenting the industry?
Technology companies and automakers understand the significance of ldquo;connected freedom. ”
Complicating the picture even further is the potential significance of an OS’therefore capacity to support several Digital Assistants of Record (independent of their OS), as we see Google Assistant now working on iOS. Voice NLP/U will likely be even more critical for car applications that are smart as compared to phones and smart speakers. Even in those established arenas the battle for OS dominance is only just beginning. Opening a new front in vehicles may have a effect. In any event, the implications for mobile app organizations are significant.
Today, looking at the landscape that is driverless there are indications about which direction the OSes in AVs will go. For example, after some first inroads developing their own fleet of vehicles that are sovereign, Google has focused almost all its efforts to autonomous driving software while striking numerous partnership deals with conventional automakers. Some automakers, but are currently moving ahead developing their particular OSes. Volkswagen, for instance, declared that vw.OS will likely soon be released in VW brand electric cars out of 2020 onward, with an eye on sovereign driving functions. (VW also intends to launch a fleet of autonomous cars in 2019 to rival Uber.) Tesla, a pioneer in AV, is constructing its own unified hardware-software stack. Businesses like Udacity, nevertheless, are constructing a “open-source” self-driving car tech. Mobileye and Baidu have a partnership set up to provide software for automobile manufacturers.
Clearly smartphone apps would gain from native integration, however there are classes beyond voice, audio and navigation which require considerable hardware investment to integrate. Will automakers be thinking about the Tesla version? Otherwise, how will smart cars and apps (separate of OS/voice helper ) partner up? Given the hardware requirements necessary to enable optimal user experience and native app functionality, the way will this force auto manufacturers to work seamlessly with platforms such as AGL to ensure distinction and competitive advantage? And, will this commoditize the OS dominance we see in smartphones now?
It’s obviously early days and — at least in the near term OS solutions will be employed until preferred solutions rise towards the top. Regardless, tech companies and automakers understand the significance of ldquo;connected freedom. ” Connectivity and vehicular will replace auto values such as relaxation speed and power. The combo of Wi-Fi hotspot and autonomous vehicles (let alone consumer/business selection of on-demand vehicles) will propel immediate conversion/personalization of smart car environments to passenger preferences. And, although questions remain around the how and those who in this brand new age in mobile, it’s not tough to see the why.
Americans spend an average of hours each year in a car, along with the average commute time has jumped about 20% since 1980. At a recent poll (conducted by Ipsos/GenPop) researchers discovered in an driverless future men and women would spend roughly a third of their time communication with family and friends or for company and internet shopping. By 2030, it’s estimated that the autonomous automobiles “will free up a mind-blowing 1.9 trillion minutes for passengers. ” Another study suggested that even with only 10 percent adoption, driverless cars can account for $250 billion in driver productivity independently.
Productivity in this sense goes beyond trade and entertainment and to the domain of business growth. The use of integrated screen (display and heads-up) and voice enables company multi-tasking from video conferencing, search, messaging, scheduling, travel booking, e-commerce and navigation. First-mover advantage goes which first package to content accessibility, one persuasive package data density and freedom. A program company which can maintain 10 to 15% of the market will be a significant player.
For now, investors are throwing lots of money at winners in the automotive race, who, consequently, are starting to specify the form of the app landscape in a driverless future. Actually, exactly what we now ’re witnessing now looks a lot like the first days of smartphones with companies such as Tesla, as an example, employing an Apple -esque plan for smart car versus smartphone. Can these OS/app marketplaces be controlled with a Tesla — or even Google (for that matter) — and command a 30 percent sales share from apps, or will auto manufacturers with proprietary platforms capitalize on this possibility? Questions such as these — while at precisely the exact identical time wondering just who the winners and losers in AV will be — imply equity and investment in the app sector is an extremely lucrative but risky bet.
Buy Tickets for every event – Sports, Concerts, Festivals and more buytickets.com