Alphabet (NASDAQ: GOOG) wants to turn your car into an Android device. Thus Google could harvest data from your vehicle in a few years.
To explain, Alphabet (NASDAQ: GOOGL) is opening its Android Automotive operating system to third-party apps, Business Insider reports. Consequently, developers of apps for vehicles can sell them to drivers.
Currently, only media apps; like Spotify, will be available to drivers. However, Volvo is installing Android Automotive in the Polestar 2 electric car.
Chryslers, Jeeps and Dodges will be Android Devices soon
Furthermore, Alphabet, Fiat Chrysler (NYSE: FCAU), and Samsung are teaming up to add Android Automotive to all Fiat Chrysler vehicles, The Detroit Free-Press reports.
Importantly, Fiat Chrysler, or FCA, owns several major brands; including Dodge, Ram Trucks, Maserati, Alpha Romero, and Jeep. Specifically, all FCA vehicles will feature Android Automotive by 2022.
This could lead to a huge market for Alphabet Auto because Fiat Chrysler sold 2.235 million vehicles in the USA in 2018. Moreover, FCAuthority estimates, FCA sold 498,435 million vehicles in the 1st Quarter of 2019.
Finally, Alphabet’s self-driving car subsidiary Waymo, is using Chrysler Pacifica minivans in its rideshare experiment in Arizona. Thus, Fiat Chrysler will soon be part of Alphabet’s platform.
How Android Automotive can kill over the air radio
Thus Alphabet will compete directly with Sirius XM Holdings (NASDAQ: SIRI) in North America.
To explain, Sirius; which owns Pandora, sells audio entertainment to drivers in the United States. However, Sirius can make money by offering Pandora, and a Sirius App on Android Automotive.
Moreover, Android Automotive could kill over the air radio in the United States by offering all drivers free; or low-cost access to vast amounts of entertainment. For instance, a driver could choose from tens of thousands of songs on Spotify rather than whatever the local disc jockey programs. Or if you prefer comedy, you could choose from thousands of stand-up comics.
Can Spotify save local Radio?
In addition, a driver could choose between BBC, NPR, Fox, and several other audio news sources rather than listen to the local news. Finally, those seeking commentary could listen to hundreds of audio pundits rather than just Rush Limbaugh.
On the other hand, local news will suffer because content providers will have few incentives to cover regional or local events. Consequently, small and regional businesses will have fewer advertising options.
However, Spotify could have a partial solution with a “commuting playlist” that blends podcasts and music, Music:)Ally reports. Hence, podcasts that feature local news or traffic and music or comment could be a logical result. One thing is certain; if Rush Limbaugh wants a job in five years, he needs to go on Spotify now.
How Alphabet can Make Money from Android Automotive
There are many ways that Alphabet can make money from Android Automotive.
For instance, Alphabet can collect data about drivers and driving habits. I think insurance companies, marketers, automakers, government, and many others will buy that data. Notably, insurance companies like Progressive (NYSE: PGR) and GEICO already monitor driving habits through Wi-Fi devices like Snapshot
In addition, developers can create and sell apps to drivers. For instance, an app that helps a driver locate the cheapest fuel in town. Moreover, McDonald’s (NYSE: MCD) could offer a free app that guides hungry drivers to its drive-through windows.
Disney could offer video entertainment for kids to watch in the back seat of mom’s minivan. Meanwhile, Tencent Holdings (OTC: TCEHY) or Electronic Arts (NASDAQ: EA) could sell games to bus or ride-share passengers. Rideshare customers could even earn extra cash by completing microtasks on Amazon Mechanical Turk on the way to the airport.
How Android Automotive could help you Make money in the future
Theoretically, Uber or Waymo could offer an app that turns your self-driving SUV into a rideshare vehicle. To explain, the SUV drives you to the office in the morning.
However, instead of gathering dust in the parking lot your SUV will spend the day hauling paying passengers around town, or delivering packages for Instacart, Jetblack, or Ocado. Consequently, your autonomous vehicle could pay for itself.
Either artificial intelligence; or a remote driver using a system like Aitheon, could drive the vehicle. Notably, Aitheon demonstrated a driverless FCA-built Jeep Rubicon in 2017. Importantly, Aitheon’s jeep completed the treacherous Rubicon Trail off-road course in California under remote control.
How Android Automotive and Aitheon could make money through the Blockchain
Aitheon’s ultimate goal is a blockchain ecosystem that will let contractors make money by operating remote control vehicles as “Aitheon Pilots,” a Medium post reveals. Hence, in a few years you could hire a “digital chauffeur” to drive your kids to soccer practice in your minivan.
In addition, you could earn extra cash by driving Uber from your couch someday. To explain, virtual reality will enable you to see what the car you are operating by remote control “sees” through video cameras.
Under these circumstances, I think Android Automotive could be a huge moneymaker for Alphabet. Moreover, Android Automotive could boost the value of companies that uses its platform. Hence, investors and developers need to watch Android Automotive closely.
Originally published at https://marketmadhouse.com on May 6 2019.