Making affordable & safe cars is hard. Just ask Elon Musk…

Yes. Tesla has just announced the closure of their showrooms. But is it just a money saving exercise or is something else a foot?

Google canned their attempt at building cars back in 2016. And have since shacked up with Waymo to have another crack at it from a different angle.

Apple have been trying to build 1 since 2015 & are still trying. With the launch date being delayed again until 2021.

And this year Amazon has invested in a start-up called Rivian. Who aim to build & supply electric pick-up trucks & SUV’s by 2020.

Amazon is also part of a group that raised $530 million for Aurora Innovation (an autonomous vehicle start-up) led by the former head of Google’s self-driving car project.

For me though. It’s just too hard & costly for the likes of Google, Apple, Facebook & Amazon to build their own vehicles. Why?

Well. To build safe & affordable cars takes a lot of knowledge, equipment & factories. Not to mention the need for a massive network of global distribution & service points.

Besides. The real money is not building & servicing the vehicles. The real money is in the software platforms that will be used to operate them.

The big car manufacturers are all in the mist of change. Getting ready for the main switch over to electric & then (not too far into the future) the migration to autonomous self-driving vehicles.

This is where the big tech companies come in. They want to own the software platform the vehicles will operate on. They don’t want to build them. But they do want to control them.

What Google, Facebook, Apple, Amazon & even Microsoft see, is lots of recurring income in a subscription model. Paid to them monthly by car manufacturers for using their software platform.

Imagine a world where you choose which autonomous self-driving electric vehicle you fancy (either online or in the showroom) based on how much you want to pay in a monthly subscription. And the only other 2 things you’ll need to choose. Is the colour & the operating system.

Wouldn’t it be great…

This month I’m flushed. So, I stretch to an Audi A6 at £600 a month. In black with Google assist. But next month I might need to save cash, so downgrade to a VW Golf with Amazon Alexa for £400.

The tech companies providing the software platform are the real winners. Charging vehicle manufacturers maybe £50 a month for each vehicle sold. Paid as part of our monthly subscription.

Can you imagine. Globally 100,000 cars a month subscribe with Google assist. Netting Google a compounded £5 million a month. Reaching £60 million a month by the end of the first year.

And there’s us. With a £24.99 monthly subscription for a business printer with unlimited cartridges. Maybe we need to get the manufacturers to include 1 with every business fleet vehicle subscription.