Connected Services around cars - A brief look

12  Jan 2023    |    3 min read

Connected services are the revolution in the automotive industry!

Classic car owners go to problems to meet their needs, due to a lack of time and resources. Fortunately, connected services solve this problem and give owners of connected cars several benefits.

Connected cars and connected services combo makes the driver’s life pretty much easier!.

An extra glance at connected services

Connected services are services delivered by a technologically-powered mechanism that offer the user a broad range of entertainment, communication, navigation, and maintenance functionalities.

​​For the last few years, car manufacturers and service providers have introduced more complex functionalities within the connected cars ecosystem, such as roadside assistance, e-charging or remote diagnostics, thereby improving customer services.

Connected services render the driver experience better by providing the latest cutting-edge services around connected cars. 

For instance: the on-demand e-charging for E-vehicles, such as E-GAP or Reefilla is a  type of connected service that fully meets the necessity of more electricity columns, which is one of the biggest advantages of on-demand e-charging.

Connected Services main assets

We can collect the connected services advantages into three main groups:

  1. New Revenue Streams: services that are provided to the vehicle sale price and traditional after-sales services represent a concrete opportunity for revenue streams over the vehicle lifecycle. One of these services can be identified in P2P. 
  2. Cost reduction: data obtained from the vehicle allows to cut costs within the value chain, for example, warranty costs. In this case, we are referring to connected services such as predictive maintenance.
  3. Safety & security: as we mentioned in the previous article, the V2X systems have a positive impact on road safety. Moreover, the collected environmental data can be used to improve road safety and design.

A demonstration of the extremely positive impact of connected services consists of the constant predicted growth of cars endowed with connected services.

A Research by Maximisemarketresearch reports: “The Global In-vehicle Connected Services Market size is projected to reach US$ 85.25 Bn. by the end of 2027, at a CAGR of 16.1%.”

The following image reports the number of subscribers to auto-embedded telematics services worldwide in 2020, with a forecast for 2021 through 2026.

Connected Services
Pic credits by Statista

Sneak peek of different connected services

On-demand Carwash

On-demand car washes don’t take place in a classic car wash building, but rather at the customer’s convenience, wherever and whenever they want.

Starting with the on-demand car wash and providing a real use case: Spiffy.

Spiffy is a car wash company, whose accessing services is effortless: book an appointment through an app, and the company comes to you with all they need and your car sparkles like a diamond! 

Why should people choose an on-demand car wash instead of the standard one?

Surely, this kind of connected service allows you to save tons of time. You don’t have to worry, use a split moment in between to run to the car wash, the service comes to you at any time, without worrying about being there personally.

Different story but same feeling: What about when you have to receive a parcel, but you’re not at home? Here’s where it is delivered into your car!

We’re talking about the In-car delivery service around connected cars.

In-car delivery - How it works

The mechanism of in-car delivery is extremely intuitive: delivery service providers gain access to the user car’s trunk to deliver a postal item (mostly e-commerce items) through a specific software that allows them to interact with the car during the delivery moment. 

The receiver of the parcel will then receive a message with delivery confirmation. 

This connected service saves time and offers an even greater flexibility compared to conventional home deliveries.

Peer to Peer Car Sharing as a Connected Service

Known as the ‘Airbnb of cars”, P2P Car Sharing sees private individuals (in jargon known as “Hosts”) as car providers, their owned cars being shared for users on P2P platforms.”

P2P is surely a connected service: The Host uses a specific fleet management platform for managing its activities and providing customized services to its clients.

This connected service provides many advantages, just focusing on the possibility to generate a further source of income for owners of one or more unused cars. 

Without P2P service they could not earn extra money, and they also could not provide a high tech and innovative experience for users of this kind of service.

OEMs are keeping up with the times

Connected services are taking hold thanks to their potential in creating value through additional revenue streams, operating cost reduction, and improvements to safety and security.

OEMs tend to capitalize on all these types of value creation, putting their customer’s needs first. Meanwhile, they are acutely aware that the lifetime revenue for a given product will expand greatly by offering services beyond the point of sale.

Curious about how to boost your service around connected cars? 

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About the author

Benedetta-BiggiBenedetta Biggi

Digital Content and PR Specialist

I love running and daydreaming losing count of the distance I’m covering, cooking (and especially eating) and Drake is my spirit guide.