GM predicted earlier this year that by 2030, software-as-a-service will bring in $20 billion annually. Nonetheless, General Motors currently has hundreds of data scientists studying consumer behavior in order to get there. The company’s insurance through OnStar comes with a promise of more subscription services as they search for a means to connect the purchase of a car to software services or to other new GM businesses.
“I wouldn’t expect us to charge someone $18 for heated seats,” remarked Alan Wexler, senior vice president of strategy and innovation at GM. We have a strong understanding of where our customers derive value. We are aware that when it comes to standard or safety features, our consumers expect them to be included in the vehicle. We’ll standardize the hardware in the car as much as we can, and then utilize software to unlock features.
GM has reassured its customers that “software is a business for us” in response to the uproar caused by the Luxury automaker, BMW, selling new eye-popping subscriptions in numerous nations that include $18 heated seats and $10 heated steering wheels. As GM develops new technologies, it will be able to analyze vehicle data from customers and communicate with car buyers to upsell them on additional services after the initial car purchase.
If GM notices a pattern of a certain highway you drive or a certain time or traffic pattern routinely taken, it can send an offer to the driver saying, “Would you like to try Super Cruise on your way home tonight?” Wexler said. “We can offer it to you as a try and buy.”
Super Cruise, GM’s hand-free driving system, is compatible with the 400,000 miles of mapped roads in the United States and Canada. With additional roadways to be driven on, Ultra Cruise is GM’s follow-up to Super Cruise. In 2024, it will make its debut with the Cadillac Celestiq EV. After the original purchase of the vehicle, Super Cruise will provide three years of service and then will offer $25 per month or $250 per year to continue providing services.
“We believe our autonomous technology, whether it is Super Cruise or Ultra Cruise, leads to safer driving, so that should lead to saving money on insurance,” explains Wexler.
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