June 21, 2019
A newsletter about the auto industry, mobility, design, and the cultures that surround us. Brought to you by Joe Simpson and Drew Smith of The Automobility Group. If you like what you see, tell your friends!
Auto
How the Golf IV changed auto design forever
Why it’s interesting: the definition of premium automotive design is less clear today than ever, but it unquestionably originated in Germany, and with one car in particular.
Cars like the fourth generation Golf forever changed how we perceived quality, shifting it from technical superiority in the drivetrain, to technical superiority of visible elements and user touchpoints.
But twenty years on from the Golf IV, are we due another step change? Today's premium auto brands have largely abandoned the idea of technical superiority in the drivetrain – particularly on smaller cars.
But what elements communicate perceived quality and how much the user views its importance is clearly changing.
/JS
Competing for consumers in driverless cars
Why it’s interesting: PwC argues that the concept of the fifth screen economy – the one in a driverless car (the first four were cinema, tv, home computer and smartphone) – will define the future of mobility.
It sets out three ways OEMs can compete with insurgent technology brands: as dumb box builders, partners to tech brands, or by competing to provide a bespoke screen economy eco-system. None feel like particularly convincing or appealing business models.
As an aside, Ben Evan's second order consequences is a much more horizon-widening read when thinking about autonomy and its consequences.
/JS
Mobility
AVs are going to be so much fun for cyclists and pedestrians
Why it’s interesting: at a basic level, this video is just plain funny.
But it neatly highlights the potential of current real-world road hierarchy to be turned on its head.
And highlights the very subtle and complex issues around how AVs can be taught (for instance) how and when to be assertive.
/JS
Uber: another pivot to profitability?
Why it’s interesting: After a lacklustre IPO and continued critique of its core ride hailing business, Uber’s expansion in to financial services might be a path to profits.
It’s long been known that Uber’s ride hailing business runs well bellow cost. Sustained by VC cash and an unrelenting hype cycle, the only way the newly-listed company can improve its economics is to pay drivers less, or charge passengers more. This could cause either or both sides of the marketplace to collapse. Hmmm…
So with the hangover from the IPO still/not yet settling on Uber and its boosters, arrives news that Uber is expanding it’s financial services team in New York. CNBC says they’re exploring:
… building “payment experiences” that encourage riders and eaters to use Uber or remove costs from the system, and helping contractors manage the funds they earn…
and
A more radical possibility… an Uber bank account, according to a person with knowledge of the matter…
Given the challenges of turning a profit on ride hailing, being able to control the payments ecosystem may be a way to claw back margin. But whether Uber can command the trust of consumers and regulators in the financial services sector is another matter all together.
/DS
Design
The Boeing 737 Max scandal has “traumatised” the aviation industry
Why it’s interesting: because a race to reach the market with new technology distorted design ethics, killed 346 people, and destroyed the reputation of a company.
(Pair with this article for background on the scandal)
The lede in this article is buried at the end, and it goes like this:
“Honestly, it’s somewhat unthinkable what’s happened, and I think … we’ve been traumatized as an industry,” Bastian said. “We’re still wrapping our minds around what happened.”
That’s Ed Bastian, CEO of Delta, an airline whose fleet is comprised mostly of Boeing planes.
Commercial expediency, lax oversight from management and regulators, compromised design and engineering all contributed to death, the destruction of trust and a loss of $40b in stock market value for Boeing (in March numbers).
Now, where are we at with advanced driver assist and autonomous drive (AD) systems…
/DS
Mary Meeker’s Internet Trends 2019
Why it’s interesting: the annual must-read is full of amazing data, but a couple of key points stand out regarding mobility as a service (MaaS) and how we’re communicating.
The first is the slide above, which shows how an MaaS provider has used their market penetration, built on providing cheap transportation, to expand in to providing financial services for the underrepresented (see also my piece on Uber’s financial services push… )
The second is an entire section devoted to the emergence of the still or moving image as a communication medium (typified by the rise of platforms like Instagram, SnapChat and TikTok).
The implications for how we design interfaces are immense.
/DS
Culture
AirPods are changing office life
Why it’s interesting: with wearables now the driver of growth for Apple, the Airpods' impact on culture and societal behaviour is becoming more noticeable.
This (UK, ad-agency specific) article discusses the role of AirPods in changing socially acceptable behaviour in the work place and their longer-term impact in an environment which depends on creativity and person-to-person collaboration.
It gets to the heart of the impact technology is having on cultural organisations, and the hard-wired expectations and behavioural codes, built over generations, that are now changing.
/JS
Spotify’s streaming surveillance
Why it’s interesting: While everybody’s been focussed on the privacy ills at Facebook, Google and Amazon, Spotify’s quietly built an ad-targeting database of users’ emotional states. The news could further complicate consumers willingness to share personal data.
The ability to pick a perfectly-curated playlist for our emotional state has been one of the very cool/slightly creepy wonders of the streaming music age. By analysing our listening habits, services like Spotify have been able to learn which music will give us a lift when we’re down, get our party started, or help us sleep.
It turns out that Spotify, the Swedish streaming giant with 207 million users, helps advertisers play a merry tune, too. This comes from one of their pitch decks:
“At Spotify we have a personal relationship with over 191 million people who show us their true colors with zero filter… This data fuels Spotify’s streaming intelligence—our secret weapon that gives brands the edge to be relevant in real-time moments.”
And from another deck:
“The most exciting part? This new research is starting to reveal the streaming generation’s offline behaviors through their streaming habits.”
At the core of the Cambridge Analytica/Facebook scandal was the revelation that someone’s political affiliation could be determined from seemingly unrelated personal information and behaviour. This information was then used to create political advertising that was highly targeted to individuals.
Cambridge Analytica has shut down. Facebook is facing calls to be broken up. And Apple is doubling down on its stance as a protector of privacy. The revelations about Spotify will only add fuel to a growing debate about who owns consumers’ personal data.
/DS
That's it for this issue. We love feedback (positive and negative), and to answer any questions you have. So email Joe or Drew and we’ll get back to you.
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