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WRT Uber, market seems to value recurring revenue streams higher than non recurring streams (ie average customer buys a new car every 7 years, likely from diffe
by 0xB31B1B 7y ago
WRT Uber, market seems to value recurring revenue streams higher than non recurring streams (ie average customer buys a new car every 7 years, likely from different manufacturers, but an Uber customer uses the product a few times per month). Auto makers could be valued more highly if they can sell subscriptions to something.
- ccheney 7y agoTesla recently started billing $10/mo for internet service[1] (might be at a break-even price). They've also started to release in-app DLC ($2k) that makes your car accelerate quicker[2] [1] https://www.tesla.com/support/connectivity https://www.tesla.com/support/connectivity [2] https://electrek.co/2019/12/18/tesla-acceleration-boost-upgrade-leaks-model-3/ https://electrek.co/2019/12/18/tesla-acceleration-boost-upgr...
- mediaman 7y agoMost of the major auto makers are trying to sell various tack-on services to get that ARR honey. Car-based internet is one of them. It's tough though: most people don't care about car based internet when their phone already has it. It doesn't feel like anyone has yet found a recurring revenue stream for vehicles that has met any actual demand.
- davidgould 7y agoI did not purchase the GM connectivity because it didn't provide any value, the features were lame or useless and it was no loss not having them after the trial period ended. The Tesla connectivity is really part of the whole car experience and I would probably be willing to pay quite a bit more, I was surprised by how reasonable the price was.