The tech giant Google has recently been in talks with the automobile manufacturer Honda to install self-driving technology in the Japanese manufacturer’s vehicles. This move sheds light on Google’s project development business model.
The self-driving vehicle is a hot topic, but we have yet to see a sheer transition. Recently it was revealed that Google’s self-driving technology might be installed onto Honda vehicles. Having already struck deals with Chrysler and Lexus, this mirrors Google’s release of their Android OS platform.#Honda is collaborating with a #Google self-driving vehicle division called #Waymo.Click To Tweet
Embedding Google’s tech into other companies’ vehicles saves Google a field of research, development, and design. With other companies doing the manufacturing, Google’s software can be replicated at relatively low costs. Carmakers installing Google’s self-driving vehicle technology give Google control of a large network of data, by which Google can permeate Google Assistant and further leverage their technologies.
Making a Deal With the Self-driving Vehicle Future
Honda is collaborating with a Google division called Waymo. An agreement between Honda and Waymo will enable researchers from both organizations to learn about the integration of Waymo’s sensors, software, and computers in Honda’s vehicles.
According to Honda, if a deal is finalized it will provide vehicles to Waymo that have been modified to handle their technology. Honda joins Lexus and Chrysler’s self-driving vehicle aspirations under the Waymo banner.
This partnership could be the latest in the rush to put autonomous vehicles out on the market, something that Honda intends to do by 2020.
Google Becomes Ubiquitous
If this new deal seems familiar, then you may be thinking about Google’s strategy with their Android OS platform. By getting as many hardware partners on board, Google was able to make Android one of the biggest competitors in the smartphone market.
By developing Intellectual Property and leading the research effort, Google is in a strong position to leverage their patents and license them to car companies that agree to ship their vehicles with Android OS.
“By leading the research effort, Google is in a strong position to leverage their patents”
Since many manufacturers will have Waymo tech installed, Google is going to be in a good place to dominate the self-driving car market and more. With Google’s Assistant being present in so many cars, the company could dominate the advertisement, app monetization, and audio streaming departments.
Imagine Google Assistant as the voice of your car. It allows you to control various features such as media playback and camera control. At the same time, children are streaming Google Play movies in the back of the car with the help of a 5G wireless data network.
Cars may be a massive investment for the average consumer, but what they won’t notice is that Google will be making more money from the tech inside that car than the manufacturer will from the vehicle itself. It’ll be Google’s little secret.