Mercedes Sees Online Services As Profitable As Selling Cars

putri titian

The market for AI systems will explode in the next five years.

Mercedes-Benz’ MBUX infotainment system debuted for the first time with the new A-Class back in 2018 and you can already order it in almost every vehicle from the manufacturer – including the recently refreshed E-Class coupe and convertible. The Mercedes-Benz User Experience (MBUX), pronounced em-bee yew-ex, boasts a pretty display and clever interfaces in spades, and the automaker will continue to invest millions in it as it believes it can make money.

According to a recent report, the market for automotive AI systems will rise from about $2 billion today to more than $26.5 billion by 2025. Simply put, if you put big money on this technology now, you’ll be in a better position to monetize it when the sector explodes. And Mercedes knows that and it’s the main reason why it chose to invest in an in-house developed system rather than cooperate with a tech giant like Google, for example.

The Latest Merc Model To Get The MBUX:

“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,” said MBUX head of user interaction Nils Schanz in a recent interview with Autocar. The publication asked him whether online services could eventually become as profitable as simply selling cars.

The MBUX already offers a number of potential profit streams, including food-ordering services and even a service for booking cinema tickets in China, and more options will be added with future updates. Services including Yelp, Tripadvisor, and Apple Music are already available, as Autocar reports.

What We Like (And What We Don’t) About The MBUX:

“We can see how the business model could develop as a significant source of revenue, although right now there’s no revenue sharing model.”

Source: Autocar via

Source Article

Next Post

COVID-19 is changing how we buy cars with online sales, home delivery and more transparent pricing

At some point, we’ve all felt like a chump in a car dealership showroom, waiting for the salesperson to emerge from a shrouded back office where they presumably spent the last 20 minutes pushing a hard-nosed manager to chip another $100 off the price of that car you’re haggling over. After hours at the dealership, it feels like […]