General Motors or GM announced that it would be discontinuing its in-car shopping app, Marketplace, starting March 2022.
The app, which was launched in 2017, was part of the automaker's plan to redesign the driving experience of its customers by adding smartphone-style features and creating revenue streams via partnerships with third-party companies.
GM to Shut Down Marketplace
The Marketplace allows GM owners to purchase coffee, pay for gas, or make restaurant reservations inside the vehicle.
According to CNBC, the Marketplace is described by GM as the automotive industry's first commerce platform for on-demand reservations and purchases of services and goods.
GM said it has decided to shut down Marketplace because of Xevo, a connected car software supplier, exiting the business, according to The Verge.
Also Read: GM Temporarily Shuts Down Factory in North America, Mexico, and Canada Due to Chip Shortage
However, this decision does not mean that the automaker will no longer create in-car shopping features. GM stated that it has plans of rolling out a new service in the next few years. Car owners can still purchase things on their screens via third-party apps.
A spokesperson for GM said that based on the company's learnings and evolving needs and preferences of their customers, they are building on and expanding its existing voice, map capabilities, and apps to integrate in-vehicle commerce features better.
GM's move to shut down Marketplace represents the car future that several automakers do not discuss.
While they discuss the benefits of software updates and safety benefits like in-car communication, the automakers refuse to address how fast these features can be taken away if they are not impacting the customers or if it costs too much for them to keep.
Marketplace has had mixed reviews since its launch. For example, car owners buying gas at a Shell station required them to register with Shell, get a PIN number and input it at the pump to authorize the purchase.
There were several levels of authentication, even for the most basic purchase. It was more of a hassle for car owners than a convenience.
Meanwhile, third-party companies are into the idea of getting space on the screens inside the vehicles. With autonomous driving on the horizon, the idea of customers as captive audiences is growing probable and profitable.
Both BMW and Ford are integrating Amazon's Alexa into their latest vehicle models for smart home control, and Audio has partnered up with Tencent, Baidu, Alibaba, and other tech giants to build integrated services within its vehicles.
Warning Car Dealers
The removal of Marketplace may affect the sales pitch of car dealers. Although it is not clear if it will affect the price of the cars, GM has sent a warning to all car deals about ripping off their customers, according to CNY.
GM does not set the prices of the vehicles. Instead, they offer deals at a manufacturer's suggested retail price or MSRP.
While that is understood in the car industry to reflect the fair value of a new vehicle, dealers can still ignore the MSRP if they want to and set the price themselves.
However, the automaker warned dealers about using shortages and features in selling vehicles that are way above the retail price.
On the other hand, customers are advised to check for reviews and price lists before signing anything with a car dealer to make sure that they are not paying more than they need to.
GM is also working on manufacturing EVs, with a $7 billion project in the works.
However, GM was not off to a good start as it only sold 26 EVs compared to its rival Tesla, which sold more than 300,000.
Related Article: GM Aims to Debut a Subscription Service to be Big as Netflix in 2030, But for Cars
This article is owned by Tech Times
Written by Sophie Webster
