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  • Makeda Waterman

Apps and Technology Changing the Auto Industry Landscape

Updated: Feb 22, 2020

The tech-savvy automaker Volvo announced in 2017 the end of its diesel-fueled car. The United Nations appreciates the auto dealers decision as it aligns with the UNs Sustainable Development Goals (SDGs). Volvo predicts that by 2025 at least half of auto sales will consist of electrical Volvo cars.

What else is in store for the auto industry? As a fan of hatchback cars and technology that makes my life easier, I am amazed at the journey of the automobile evolution. About a decade ago auto app companies like Uber, Clutch, Blinker, Car2Go, or ZipCar did not exist.

As a writer with a market analyst mindset, auto dealerships need to work with leading tech software companies to stay relevant. The ultimate rule in business is to give the people what they want. A J.D. Power & Associates Power Information Network stated that by 2020 millennials will consist of 40% of car buyers.

In order for the auto dealership to catch up with the transportation experience that will impact the industry, it needs to adopt all or most of these technologies.

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Driverless Cars

I remember watching the Jetsons when I was a little girl wondering when the day would come for cars flying in the sky. Google invented the driverless car in 2009 which is now called Waymo. The driveless car has sensors that can recognize other vehicles on the road, children playing street hockey or a cyclist whisking past the car. It get’s better. It can sense movement as far as three football fields.

It is unknown if the driverless car is mainstream how it will impact outdated inventory of vehicles up for sale.

App Car Buying Experience

I recently read a Huff Post article, intrigued by Aisha Addo’s idea to start a ride-hailing app to provide safety for female car sharing passengers. It is a genius invention simply for the fact a problem was recognized, and the solution is auto apps. Its focus on a social issue speaks to the younger generation that trusts brands that have a grassroots care for the community.

Consumers that live in the prohibited text while driving locations such as California or Ontario can take advantage of free apps like Textra. Similar to scheduling social media posts on a calendar, you can expect to do the same with the app with SMS and MMS messages.

Apps make peoples lives easier in a culture of instant gratification. Auto brands working directly with app startups can attract a larger audience with an environmental or social cause.

Why the Auto Industry is Afraid of the Future

The fact remains that it can take decades for car buying apps to eliminate the car dealership experience. Only the universe has an idea of when driveless, non-fueled, or Jetson cars will replace a majority of automobiles on the road.

As we have seen in other industries in Retail with the demise of SEARS, Toys R’ Us and Zellers, the auto industry’s success will be dependent on investing in technology. Technology that creates trending news stories peaks the interest of millennial drivers with a focus on environmentally friendly options.

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