eCommerce Principles Must Guide Successful Connected Car Monetization

Dan Roarty
Nov 8, 2018 · 6 min read

OEMs can tap into $35B US parking market by following fundamentals

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While the debate continues on how long before we will live in a fully autonomous vehicle world, the future of connected mobility is here, today. Virtually every vehicle coming off the assembly line has a modem with internet connectivity and every automaker, as well as large consumer brands, are focused on bringing convenient connected features to drivers across the world.

Soon drivers pulling out of their garage will have their coffee ordered automatically, the heat turned down at home, their parking spot reserved and paid for, the nearest gas pump primed and ready to fuel, and their route optimized to get to their first meeting on time. Navigation, fueling and parking will be anchor tenants of every connected car strategy — but just because you build it does not mean they will come.

Automakers and software builders must follow key eCommerce fundamentals in the car — just like you would in a mobile app or website.

The Opportunity

Fueling and parking are widely acknowledged as the keys to begin monetizing any connected car service. They are the things done most frequently in the car and are the most obvious starting points. OEMs have a huge opportunity to capture a share of these massive markets. The parking industry alone is a $35 billion market in the U.S., and the average American spends the same on parking each month as they do on gas, but with more frequent transactions. Building integrated services like parking and fueling can establish a transactional relationship for other services with a card on file and established trust between the automaker and customers.

Following eCommerce Fundamentals Will Maximize Connected Car Services

By mapping eCommerce fundamentals to a connected car experience, OEMs can begin tapping new revenue streams and creating loyal customers.

  • Start with the basics — the funnel. Buying something in the car is no different than buying something on a phone-except you might be driving 60 miles and hour and the bar for safety and simplicity must be much, much higher. That said, there is still a funnel that starts with discovering the capability, then finding the product you want to buy, then transacting and finally consuming the service. Just like ordering something on Amazon or Groupon, customers need to know how to navigate each step of the funnel — and software makers need to obsess over each step. Each step needs to be instrumented to collect every bit of data possible — where did the customer start? How many steps did they take? What did they try to search for? Where did they abandon? Why did they abandon? Did they buy a second time? Each step in the funnel must have a clear purpose, must be laid out plainly to the user and must only be introduced if absolutely necessary.

Our team has experience building eCommerce experiences for leading brands like Expedia, Groupon, Redbox, Nordstrom and more — selling billions of dollars of goods and services online and through mobile apps. We’ve learned as a team what it takes to deliver a great online experience connected to a very offline and real world. At ParkWhiz, through our Arrive Network — our friction-free parking network — we are innovating to meet the needs of future drivers and connected and autonomous vehicles by applying these eCommerce principles to parking and other vehicle services. Interested in learning more? Please contact me at droarty@parkwhiz.com.

Arrive

Powering the last mile of connected and autonomous mobility.

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