This is a post in a series about Mercedes-Benz operating system, MB.OS. It’s part of a move towards electric vehicles and a response to changing regulatory and consumer preferences (not to mention a move towards greater share of revenue for MB!)
Mercedes-Benz (MB) has changed its dependence with prior dominant suppliers such as Bosch and does not want to pursue a path like Google Android Automotive. MB looks to control the MB.OS data and thus the luxury experience. By assuming responsibility and control MB sees the best path to a new revenue model and customer relationships.
Critical to MB is the sale of vehicles with Over-The-Air (OTA) updating which will create a continuing revenue stream. MBR&D will continue to add functionality and features to the deployed MB.OS vehicles. MB gains a direct continuous revenue stream (like Tesla has). To achieve a business model that employs OTA updating and recurrent subscription revenues, MB is pursuing a different approach to vehicle development and features. From 2024 the digital luxury features will be software based, customized per driver on subscription, and continually interacting with MB. MB is positioning OTA and Artificial Intelligence (AI) features as the keys to digital luxury.
MB.OS platform OTA functions will deliver software applications, subscriptions, and incremental features. MB perceives Cloud and OTA functions as improving vehicle safety and the digital luxury experience. The goal is to apply a large investment that can be monetized by sustaining revenues over multiple vehicle platforms and generations.
Locking in consumers to Mercedes Benz only software and tech may open them up to the same scrutiny that Apple and Google app markets are getting from the EU and other governments.
The next post in the series talks focuses on some of the tech details about MB.OS.
If you’d like to read the first post in this series, you can find it here – https://www.ekalore.com/post/india-in-the-driver-s-seat
Or if you’d like to see other articles about Alien Invasions (overwhelming competitors from outside the marketplace) https://www.ekalore.com/alien-invaders
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