Can Google Overcome Tesla's Roadblocks?

"Tom McParland" (tommcparland)
05/30/2014 at 19:55 • Filed to: Google Car, Tesla, Dealerships, articles

I promised myself I would not write about the Google Car, but promises are made to be broken and here we are. Like you I have a lot of questions on what this creation means for the future of transportation. Will it save the planet? Will it solve congestion? Will it kill car-enthusiasts? My guess is probably not to all 3. However, the Google Car could post a very serious threat to an industry already feeling defensive...car-dealerships.

Yesterday, Jason Torchinsky made the following point-

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"The key thing to remember here is that what Google has made here is not a car. It's a robot. A robot whose primary mission is to take you from one place to another, within a very specific set of circumstances."

So what is a "car" anyway? The definitions vary, and most are outdated-

car

kär/

noun

a road vehicle, typically with four wheels, powered by an internal combustion engine and able to carry a small number of people.

Well except for the internal combustion engine part, that is pretty much on point. But how do drivers or lack thereof factor in? If no one is driving is it still a car? These are some deep auto-philosophical questions.

As of now Google is calling it a "car" because that is the terminology we are all comfortable with. But what if they didn't, what if they referred to it as an RTM (Robotic Transportation Module) or something to that effect. One commenter called it a !!!error: Indecipherable SUB-paragraph formatting!!! So for the sake of discussion let's say Google doesn't call it a "car," how then would it be sold?

Tesla Motors is the first real automaker to emerge from Silicon Valley. They want to sell their product the way other Silicon Valley products are sold, mostly direct through the manufacturer. But there is a problem, Tesla Motors makes cars, and in the United States it is illegal to sell cars direct through the manufacturer. Thus Tesla has struggled in many states to either open showrooms or keep them open. So because Tesla is selling a "car" they are inevitably bound by these laws.

However, if and when this Google "car" becomes a viable consumer product and the brand chooses to not to market it as a car, but rather something else, they could effectively bypass the very obstacles holding Tesla back. Previous Google car prototypes were actual cars, but with Google modified autonomous equipment. This new thing is nothing like those vehicles. As gradual proliferation of autonomous vehicles becomes more commonplace, I can see Google lobbying to have passive means of transport not labeled as "cars" as to ensure that this this digital giant radically changes not only how we are move from place to place, but how we acquire this product.

The ongoing Tesla battle has shown that the dealership lobby is not going to let some California company eat into their market share. Which is why Google might not "sell" this product at all but rather have you subscribe to a service. The service could be somewhere between Netflix and a car-share program like ZipCar. !!!error: Indecipherable SUB-paragraph formatting!!!

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So maybe this won't be so bad. Instead of "buying" a car and having to worry about maintenance, insurance, and fuel costs, you could just subscribe to Google Transport and depending on your subscription tier, use everyday or as needed. Then you can use that savings for your dino-juice powered bachelor sports mobile. !!!error: Indecipherable SUB-paragraph formatting!!! But what if the Google car is the future of public transport. Our public transit system is inadequate mainly because it is difficult for trains and buses to serve all the people living outside of a city. A coordinated fleet of Google cars could retrieve and deliver passengers as long as there is a road. There is the issue of electric charging infrastructure, but putting that together is a heck of a lot cheaper than rail.

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Of course this is all crazy talk...but Google has been pretty successful with crazy ideas.

Oh Google, if you want to use the term RTM, I expect a healthy compensation :)

(photo credit- Outofbit.it)

I'm Tom and I run !!!error: Indecipherable SUB-paragraph formatting!!! ; I also write !!!error: Indecipherable SUB-paragraph formatting!!! If you have any questions about the car-buying process feel free to drop me a line in the comments or find me on Twitter !!!error: Indecipherable SUB-paragraph formatting!!! and !!!error: Indecipherable SUB-paragraph formatting!!!

DISCUSSION (8)

William Byrd > Tom McParland
05/30/2014 at 10:59

Good read.

My thoughts on whether it will kill off enthusiasts. Spoiler alert, "no".

Tom McParland > William Byrd
05/30/2014 at 11:04

I caught that post yesterday via Twitter, well done

jariten1781 > Tom McParland
05/30/2014 at 11:10

The only thing I really like about the future of networked autonomous vehicles is that once people get comfortable with 100% computer controlled transportation not killing them we can finally get the flying car we were promised decades ago. Well, at least rich folks will be able to.

William Byrd > Tom McParland
05/30/2014 at 11:37

Thanks. Kinda hit a dull thud on Oppo. I guess the "sky is falling" angle plays better. haha

Tom McParland > William Byrd
05/30/2014 at 11:39

I think the Google Car thing got quickly over-exposed and people are tired of it already.

Damon Lavrinc > Tom McParland
05/30/2014 at 13:57

Solid analysis Tom. Lot of good points culling from the bigger stories this week.

Google has said repeatedly that doesn't want to be in the car biz. But that's a bit disingenuous. They don't want to be the next Tesla, they want to be the next Bosch or Continental – suppliers making the guts of increasingly computerized cars. That's where the real innovation is happening (look for a story soon) and it's something the companies in the Valley are working overtime to fill.

Tom McParland > Damon Lavrinc
05/30/2014 at 13:59

Thanks!

Satoshi "Zipang" Katsura > Tom McParland
05/30/2014 at 20:04

Kinja'd!!!

Toyota, we talked about this already. No more Altezza lights.