Carmakers want to prevent Apple and Google from gaining access to the driver data collected by in-car technology systems, and it's all about money.
Both Apple and Google have their own in-car tech systems - CarPlay and Android Auto, respectively - and have teamed up with carmakers to deliver the technology to consumers. The systems are designed to link smartphones to in-car entertainment systems, which gather data regarding the driver's habits.
The vehicle's activity can reveal various information about the driver and their habits, including their most frequent destinations, where they do their shopping, what bars or restaurants they frequent, where they buy their gas, how fast they usually drive, and other such information. This data can be valuable to merchants, insurance companies and the like, and carmakers want to prevent Google and Apple from getting their hands on this information collected by in-car technology systems.
While at first it may seem like auto makers want to protect this data from Apple and Google to the benefit of consumers, it's actually all about money. A new report from Reuters reveals that carmakers don't want to share this data because it could be a huge revenue source, potentially generating notable income in the future.
It's still early on now to monetize the data in-car technology systems collected, but carmakers are nonetheless making efforts to prevent Apple and Google from getting access to the information.
"We need to control access to that data," notes Don Butler, Ford Motor Company Executive Director of Connected Vehicle and Services. "We need to protect our ability to create value."
Reuters further notes that the stakes could be huge. Earlier this year, General Motors Co said that it is equipping its cars with high-speed data connections that should generate an extra $350 million in revenue, over a period of three years. Alix Partners, meanwhile, expects global revenues to hit $40 billion a year in three years' time, by 2018.
Moreover, carmakers are reportedly working on their in-house systems to rival Apple's CarPlay and Google's Android Auto which would give them greater control over the business model of the collected data on drivers' behavior and habits.
Considering the potentially huge revenues from monetizing driver data, it's no wonder that carmakers don't want to share the information with Apple and Google. It's not about consumer privacy; money talks.