Archive | June 15, 2014

Connected car: new model building by Google

Google Car 2.0

This is incredible to see how Google progressed within 1 year about their program “Google self-driving car project”. This is now not anymore, a concept with technical tests using a Toyota cars, as it was last year, with Prius or Lexus RX; this is not anymore a technical solution with engineers embedded in these cars, checking the issues of the software developed.

This concept allows Google to propose a completely automatized car without any steering wheel nor any pedals of acceleration or brake nor any engineer embedded in the car.

A new model of usage born

These cars will not be sold by Google; the cost of cars remains too expensive from now; some rumors speaks about a price of 1 million of dollars for the first Google cars, if we integrate manufacturing costs and R&D costs included; and the running costs of these cars is unknown for the moment; for sure, limited people could buy these cars if they would be allowed to buy them.

These cars will be firstly rented by Google to replace your car to go to supermarket, to go to airport or to go some meetings in your town.  This model reinvent the usage of transports.

On one side, this car can be compared to a public transport, completely optimized: the car is able to take you everywhere; and you can go everywhere; this car is a two places car, it doesn’t take a lot of place in the road circulation and you don’t need to park them; the car is able to know the traffic jam and optimize the way to go to the destination.

On the other side, this car can manage all small “travel” corresponding to 80% if car usages. This is a complete revolution for the car manufacturers in the next 10 years; in this case, people will not buy anymore a car; what is the interest if you can “call” a car when you need it?

Of course, it means that there will be enough “automatized” cars available in one place as big towns. This is also a complete revolution for taxi or public transports: this automatized transport can be very competitive in the next 10 years and completely change the model of transports in big town.

Continuous disruptive model as Business model

This revolution is exiting because Google, a “big” company with 50000 employees and 60 billions of turnover, is able to make some disruptive innovations on many different sectors every year!

Generally, companies are able to make one disruptive innovation every 10 years; and when it is more, a big risk of failure of the company can be predicted. In the case of Google, it seems not; their Business model seems to be constructed on their capacity to continuously be able to build some disruptive concepts with a lot of synergies with existing profitable activities they also manage.

A lesson to be learn by many worldwide companies if they would continue to exist in the next decades.