7 Business Models for Autonomous Driving
<p>Many automotive original equipment manufacturers (OEMs) believe transportation is set for fundamental disruption and will be very different in the future. Some OEMs like BMW sell directly to consumers today but are also <a href="https://www.cnn.com/2019/02/22/business/daimler-bmw-mobility/index.html" rel="noopener ugc nofollow" target="_blank">experimenting</a> with ridesharing, fleet sales and time splitting, creating transportation as a service (TaaS) business models. On-demand business models will alter profit pool configurations in the transportation industry, with value shifting to technology, data, design and platforms and away from dealerships or hardware.</p>
<p>Operating systems are the heartbeat of any ecosystem, but technology players have monetized them differently. Apple (iOS) <a href="https://www.businessinsider.com/why-apple-products-are-so-expensive-iphone-macbook-2019-11" rel="noopener ugc nofollow" target="_blank">charges a premium</a> for hardware, and Google (Android) drives more <a href="https://venturebeat.com/2020/02/12/liftoff-2020-may-be-the-year-android-ad-revenue-eclipses-ios/" rel="noopener ugc nofollow" target="_blank">advertising revenue,</a> while Microsoft (Windows) is <a href="https://www.zdnet.com/article/running-windows-10-heres-how-microsoft-plans-to-milk-more-profits-out-of-its-cash-cow/" rel="noopener ugc nofollow" target="_blank">monetized</a> directly. Control of the OS is vital to the autonomous driving value chain, as it affects customer experiences and relationships through control.</p>
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