PUBLISHED DATE: 2025-08-11 21:58:07

VIDEO TRANSCRIPT:

SPEAKER: Connected vehicles are data-generating gold mines. In fact, automakers were among the first to monetize vehicle data as soon as connected cars hit the road. Their ambitions were not only to use data sets for safety monitoring, maintenance, and product development, but also to sell them to third parties. However, returns were nowhere near expectations. Third party demand did not generate the millions in additional revenue that had been hoped for. Now OEMs are back at the drawing board and they want to tap into the value of the data itself to create new business models that serve drivers directly. Here are three ways OEMs can use in-car data to provide a better driving experience.

  1. The average car is driven as little as 4% of the time. Usage-based or pay-as-you-go insurance is based on driver behavior, like how far a vehicle is driven, where it's driven, and how it's driven so drivers pay only for the coverage they need.
  2. That 4% usage rate is also in line with the declining vehicle ownership rates. To cater to these new driving habits, OEMs can turn to rentals and fleet management where fewer vehicles serve more people and businesses.
  3. Finally, OEMs can join up with many transportation options available like train, scooter, plane, and ride sourcing companies. Partnerships across these modes of transportation will provide riders with greater convenience.

As with any service where user data is monetized, the value being offered to customers needs to be clear. And it needs to outweigh the cost and risk customers take when they share their data.