Mercedes-Benz is investing heavily in its MBUX infotainment system because of the potential for making money from offering online services, which in future could rival the profits made from selling cars.
Mercedes introduced the latest version of MBUX on the Mercedes-Benz A-Class in 2018, and the system is now available across virtually its entire model line-up.
A key focus of the system is voice control. Mercedes is currently rolling out an over-the-air software update in certain markets allowing more informal language to be used. In China, the firm has also launched a feature that allows users to order and pay for takeaway food via voice control while driving. A service for booking cinema tickets is also being offered.
A recent report predicted the market for automotive AI systems (including hardware, software and in-car services) will rise from £1.6 billion today to £21bn by 2025.
The desire to capitalise on this has led Mercedes to invest millions in a bespoke system, rather than look to partner with a smartphone provider such as Apple or Google, as some rival car makers are doing.
When asked by Autocar if he believes Mercedes can make as much money from AI systems as from selling cars, MBUX head of user interaction Nils Schanz said: “This is what we are aiming for, and this is why we are investing so heavily in MBUX. We can see there is huge business potential.”
Schanz, who clarified that his job is focused on the user experience and not developing revenue models, said Mercedes has no plans at present to charge owners for using in-car services such as food ordering.
Potential profit streams beyond selling MBUX hardware include charging businesses for access to the food-ordering service and selling access to the platform to third-party app creators. Services including Yelp, Tripadvisor and Apple Music are already available.
Schanz said: “We can see how the business model could develop as a significant source of revenue, although right now there’s no revenue sharing model.”
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MB didn't say that AI would
That a corny trick straight out of the arse end of cheap journalism.
Depressing
It's not tech for techs sake, it's tech for revenue generation. Let's face it tech companies are in the business of monetising our every move. So imagine Apple's dismay when they realised they couldn't make money out of people when they were driving a car. Hence, Apple became interested in autonomous car development. Even if they realised (somewhat earlier than dyson) that they'd bitten off more than they could chew.
Let's be honest, autonomous vehicle development isn't really about safety, it's about revenue. Like I said, depressing.
ps though has Covid-19 meant that we might actually be sat in our cars less in the future and working from home more after all?
Generations
As we all know and see nearly every day people of all ages have some kind of device in there hand, be it a phone, a Tablet, it's even on your wrist now, the generation coming are growing up with this tech, it's not particularly amazing to them, I'm sure some of us are from the non digital age, hence some of us abhors the way tech is going, but today's and the future gen want it, the idea of being able to, on a whim to order a Pizza, or a Burger and have it delivered to wherever is great, so, you still have the choice, your next car may come with this tech, but you still have the option of ignoring it, not use it, it's up to you.