GM shuts down in-vehicle purchase app, seeks best possible service
General Motors is phasing out its Marketplace app on millions of vehicles as it studies a better replacement for in-vehicle shopping software.
The move is part of GM’s quest, which it outlined last October at its Investor Day, to hit $20 billion to $25 billion in revenue from its various subscription services by the end of the year. decade.
“We view e-commerce as a key component and are working on it,” GM spokeswoman Stephanie Obendorfer told the Detroit Free Press. “We are looking to iterate and improve it based on learnings from Marketplace.”
But Obendorfer was careful to say that GM “continues to evaluate the needs and services of our customers. We have nothing to announce at this time in terms of replacement.”
Marketplace merchants and customers
GM launched Marketplace in 2017. It’s now on most 2017-22 model year GM vehicles. It allows drivers to purchase coffee, donuts, make restaurant and hotel reservations, and even prepay for gas, all from the road using an in-dash touchscreen.
Continued:General Motors Marketplace Tracks Drivers’ Buying Preferences
Marketplace is part of GM’s “Connected Access” plan, which is included with the purchase of a vehicle for up to 10 years, Obendorfer said. So it was essentially free for vehicles that had it, she said.
This is because traders have subsidized the cost. It includes 10 providers: Shell, ExxonMobile, Duncan Donuts, Domino’s Pizza, Applebee’s, IHOP, Office Depot, Yelp, Priceline.com and Delivery.com.
Obendorfer declined to share the number of GM car owners using Marketplace, but at its October Investor Day, GM said it had 16 million connected vehicles and 4.2 million paying customers for various GM subscription services.
On Friday, GM emailed owners who have Marketplace to let them know that starting in mid-March, the service will no longer be available.
In the email, which GM shared with Free Press, it said: “We regularly evaluate our services to ensure they provide the best experience for our members. With this in mind, we have decided to discontinue our Marketplace services. After March 2022, all accounts with Marketplace vendors will be automatically unlinked and appropriate cybersecurity measures will be followed to remove and delete all personal information.”
GM Subscription Services
Currently, GM offers a handful of paid subscription services such as the OnStar mobile app and OnStar Guardian, which is available to non-GM vehicle owners. OnStar services include in-vehicle security, emergency services, hands-free calling, turn-by-turn navigation and remote diagnostic systems.
Continued:GM offers OnStar service to drivers of any vehicle in the United States and Canada
OnStar starts at $30 per month for the security plan and OnStar Guardian access, Obendorfer said. The www.onstar.com website lists all plans and prices.
Starting at $15 per month, GM car owners can get the App Access plan, which allows them to stream Spotify music app, Pandora, The Weather Channel, real-time traffic updates with GMC Maps+, connected navigation and more from their touch screen or via Alexa.
GM also sells its in-car WiFi data plan, which starts at $25 per month, Obendorfer said. It provides unlimited in-car data so everyone in the car can connect to a hotspot to stream video or work on the road.
Last October, GM announced that it would earn $2 billion in subscription services revenue in calendar year 2021. This represented more than 70% of GM’s worldwide profit before interest and taxes.
Billions in Subscriber Revenue
As GM unveils its various software plans, it expects to generate an additional $20 billion to $25 billion in revenue annually, including at least $6 billion from OnStar Insurance, said Alan Wexler, senior vice president. from GM, Innovation and Growth, during Investor Day. .
GM launched OnStar auto insurance at the end of 2020 and it rolled out nationwide late last year.
The balance of GM’s future subscription revenue will come from products such as Maps Plus, OnStar and Super Cruise. GM launched Maps Plus in April 2021. It’s part of the App Access plan. It is an in-vehicle mapping service for approximately 1 million GM cars.
A subscription to GM’s Super Cruise hands-free driving system costs US customers $25 a month on a standalone basis, which means without a subscription to, say, OnStar.
Super Cruise, which GM launched in 2018 on select Cadillac vehicles, will be available on 22 vehicles by 2023, including the Cadillac Lyriq electric SUV coming out this spring and the GMC Hummer SUV coming next year.
Additional vehicles that offer versions of Super Cruise include the 2022 Cadillac XT6 and the 2022 Chevrolet Bolt EUV. About 10 million miles have been driven by customers using Super Cruise across the United States and Canada, GM said.
Continued:GM puts its self-driving technology on the Sierra pickup, including towing
Continued:Just tested Cadillac’s hands-free Super Cruise on a 500+ mile trip. Here’s how it went.