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Big tech companies - specifically Google-parent Alphabet, Apple, and Amazon - have their eyes set on the transportation space, which is undergoing a rapid transformation. Across the globe, legacy transportation firms are contending with forces that are reducing the appeal of traditional gas-powered vehicles, including the rise of mobility companies like Uber and Lime, regulatory pushes for cleaner vehicles, and consumer demands for a more streamlined, digital in-car experience. These forces have made traditional transportation companies both more vulnerable to challengers and more willing to work with nontraditional players. Having already shown an ability to disrupt traditional industries by rapidly innovating, creating best-in-class user experiences, and earning the loyalty of consumers across the globe, big tech now appears poised to propel the transportation industry into a new era. This includes launching mobility services of their own, backing some of the world's most successful transportation startups, supporting alternative energy sources for vehicles, and bringing their popular tech products into vehicles.
In the Big Tech in Transportation report, Business Insider Intelligence examines the moves that Alphabet, Apple, and Amazon are making to gain a larger foothold in the transportation industry. We outline potential next steps each may take based on those moves. Finally, we highlight the different strategies legacy auto firms will use to better compete as big tech companies raise their profiles in transportation.
The companies mentioned in this report are: Alphabet, Amazon, Apple, Aurora, Automobile, Ford, GM, Google, Fiat Chrysler, Rivian, Volkswagen, Waymo.
Here are some of the key takeaways from the report:
- Within big tech, Google-parent Alphabet, Apple, and Amazon have been the most active firms to push into the transportation space.
- Alphabet has quickly ramped up its transportation efforts, becoming the most formidable big tech firm in the space. The company has focused its efforts in three core areas: autonomous driving technology, vehicle operating systems (OSs), and alternative mobility.
- Despite Apple being quite secretive in its efforts, we know that the iPhone maker is working on self-driving technology and is using its OS to enter the auto space.
- Amazon, renowned for disrupting countless industries, is deploying an early strategy that appears to be focused on capturing control of the in-car experience with its voice assistant and leveraging new transportation technologies to improve operations.
In full, the report:
- Details the different avenues big tech firms are taking to build out a presence in the lucrative transportation space.
- Highlights how big tech will look to build out their transportation offerings going forward.
- Discusses the different strategies automakers can take to ensure they hold onto their respective market positions as big tech becomes a potential competitor.
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