BAT is no longer the BAT of ten years ago; the small pond can no longer satisfy the appetite of the giants. In the current landscape where the PC and mobile internet markets are divided into three parts, the rapidly growing Internet of Vehicles, with its scale in the hundreds of billions and characteristics of the internet, has naturally become a new feast for the giants.
Although it possesses certain characteristics of the internet, the Internet of Vehicles is a completely new category, with a more complex ecosystem. Traditional car manufacturers hold significant power and face uncertain policy risks such as traffic regulations and policy changes. Additionally, the lack of advanced successful experiences internationally, along with the absence of unified hardware and software standards, makes BAT’s journey in the Internet of Vehicles appear particularly hesitant.
Even so, BAT’s layout in the Internet of Vehicles still follows a certain pattern.
What Strategies Have BAT Adopted in the Internet of Vehicles?
1. Just as the PC is to the internet and the mobile phone is to mobile internet, BAT has chosen the in-car system as the carrier for the Internet of Vehicles.
The Internet of Vehicles requires an entry point that must be closest to the driver and used most frequently. Clearly, there is nothing more suitable than the in-car system (such as in-car navigation products). However, BAT did not choose this path from the very beginning. Tencent and Alibaba initially entered the Internet of Vehicles through OBD hardware and mobile apps, with a basic strategy of using box-like products to obtain vehicle information and send it to mobile phones, allowing users to check vehicle status and driving habits through mobile apps, thus deriving commercial value based on this, with the core idea still centered around the user’s mobile phone. The market did not provide positive feedback, leading Alibaba and Tencent to realize their mistake and shift to establishing partnerships with in-car system manufacturers, including collaborating with Huayang and Luchang to create integrated in-car systems that load Internet of Vehicles content.
Among BAT, only Baidu has consistently insisted on using the in-car system as the central carrier for the Internet of Vehicles. But will the in-car system truly become the core carrier of the Internet of Vehicles as BAT wishes? This remains an unknown.
2. Not satisfied with small-scale operations, BAT aims to build Internet of Vehicles platforms. Alibaba chooses to enter from the system side, Baidu adopts a mobile interconnection solution, while Tencent advances on multiple fronts.
We have no doubt about BAT’s large appetite, but each company has different understandings and strategies on how to effectively build platforms to maximize benefits. Alibaba’s Internet of Vehicles platform is centered around YunOS, which has been optimized for the in-car environment, launching YunOS for Car, which has seen significant changes in both content and UI. The core of YunOS for Car is its ability to interact with other hardware running the YunOS platform. As long as users also use other products running the YunOS system, such as mobile phones, they can enjoy resource sharing, which is similar to mobile interconnection.
Baidu uses CarLife as the core platform for the Internet of Vehicles, supplemented by My Car cloud computing services. CarLife, which originated from CarNet, implements content projection onto the in-car system through mobile devices. Compared to other interconnection solutions, Baidu’s CarLife integrates more deeply with vehicles, supporting not only touch and voice control but also interaction through the vehicle’s control buttons. My Car is responsible for collecting vehicle information and providing customizable vehicle management solutions for owners.
Tencent’s Internet of Vehicles product lineup includes not only systems—vehicle ROM—but also mobile interconnection—vehicle connection apps. However, compared to Alibaba’s YunOS, Tencent’s vehicle ROM is merely a lightweight system, or a simple UI interface, designed for easier operation while driving. Its core Internet of Vehicles functionality is still provided by the vehicle connection app. However, Tencent never forgets its social advantages, integrating the My Car module into QQ and WeChat, allowing users to view simple vehicle information.
However, the reality is that the Internet of Vehicles platform is different from internet platforms; there are more participants, standards are not unified, and even connecting to the internet is not a simple task. Therefore, BAT’s layout in the Internet of Vehicles still relies to varying degrees on mobile phone support.
3. The Internet of Vehicles ultimately needs to deliver functional capabilities, and BAT currently centers around maps.
In terms of Internet of Vehicles strategy, Alibaba has established a division centered around Amap, proposing a multi-screen strategy; Baidu’s CarLife also centers around Baidu Maps, providing traffic data, navigation, and electronic dog services; Tencent’s Internet of Vehicles platform collaborates with NavInfo to achieve cloud-based real-time online updates on maps, along with Tencent’s own relatively low-profile Tencent Maps. At the current stage of the Internet of Vehicles, there seems to be no more attractive feature than maps. However, if maps are the only feature, it would be too monotonous. BAT has integrated FM, news, social content, and more into their respective systems, which are essentially quite similar.
4. A good man needs three helpers; BAT has each established their own Internet of Vehicles camp.
If not for manufacturing complete vehicles, the Internet of Vehicles cannot be driven solely by internet companies. Currently, BAT primarily selects partners from three aspects: car manufacturers, hardware, and content services.
Baidu’s car manufacturer partners include Hyundai, Audi, Shanghai General Motors, Volkswagen, Great Wall Motors, and Changan Automobile; hardware partners include Pioneer, Desay SV, Luchang, Huayang, Feige, and Kaiyue; content service partners include Koala FM, NetEase Cloud Music, etc.
Alibaba’s car manufacturer partners include SAIC and Jaguar Land Rover; hardware partners include Luchang, Huayang, and Newman; most content services are from Alibaba’s ecosystem, such as Xiami Music and UC Browser.
Tencent’s car manufacturer partners include Mercedes-Benz; hardware partners include Huayang and Luchang; content partners include Koala FM, Stock Selection, QQ Music, etc.
Opportunities and Challenges for BAT
Thanks to the development of intelligent transportation, the Internet of Vehicles is considered one of the most promising industries for the future, and its business characteristics are very friendly to tech giants. Compared to other participants, whether in terms of product matrix, technology, funding, or industry chain influence, BAT has inherent advantages.
However, nearly two years have passed since BAT’s grand entry into the Internet of Vehicles in 2014, and we have not seen much impact. Aside from media hype and new concepts at major exhibitions, cars remain cars, driving remains driving, and the Internet of Vehicles has not changed our lives as hoped. The core issues mainly lie in the following two aspects.
1. The authenticity of user demand is hard to discern.
From the perspective of demand, the popularity of a product is positively correlated with the strength of user demand. To what extent does BAT’s Internet of Vehicles product matrix meet strong user demand? Navigation may be one of them, but it has not made significant breakthroughs over existing navigation systems, which are already sufficiently good, especially in the in-car navigation market dominated by companies like KAILIDE, Meixing, and Daodao, where end users may not be familiar enough. In such cases, users seem to have no reason to replace existing navigation systems. Music, news, social features? Driving is a focused activity, and it is hard to imagine these features taking up a significant portion of driving time. Vehicle management? Setting aside the accuracy and comprehensiveness of vehicle data acquisition, cars are ultimately just tools in users’ lives. How many people are willing to check their car’s data daily and analyze their driving habits?
Perhaps BAT’s vision is beautiful, and they may persuade car manufacturers, 4S stores, insurance companies, and other institutions to join their camp, but if end users show little interest, all efforts will ultimately be in vain.
2. Industry integration faces barriers.
The Internet of Vehicles is an industry that blends software, hardware, and services. BAT’s role in the Internet of Vehicles must connect hardware (car manufacturers, in-car system manufacturers) and service industries (insurance, 4S stores, etc.), while also attracting a large number of developers to participate. How much effort will they put in to promote the popularization of the Internet of Vehicles?
The efforts of car manufacturers are crucial in advancing the Internet of Vehicles and are partners that BAT strives to secure. Although BAT has established partnerships with relevant car manufacturers, to what extent these manufacturers will relinquish control over their vehicles remains an unknown. With current technology, no one can guarantee that vehicles exposed to the network environment will be safe, including BAT. Once such issues arise, the impact on car manufacturers will be fatal, which is a key reason for their caution in collaborating on the Internet of Vehicles.
The service industry naturally enjoys the benefits brought by the Internet of Vehicles, as it greatly promotes both management and sales. While third-party developers have received the olive branch from BAT, they clearly have not yet figured out what kind of applications car owners need.
The Ideal State of the Future Internet of Vehicles
There are many beautiful visions for the future of the Internet of Vehicles. One certain fact is that autonomous driving will become the mainstream of transportation, and under this premise, the Internet of Vehicles will unleash its true power. People will no longer focus on driving but will be interested in what happens during the vehicle’s journey. The Internet of Vehicles will provide suggestions based on each person’s lifestyle and traffic conditions, indicating where to go and which route to take without manual intervention. It will push targeted recommendations for every point of interest along the route; if you are going to meet your girlfriend, you might not want to miss that flower shop, and when it’s mealtime, you might be interested in a newly opened Korean restaurant nearby. Perhaps only in such a world of the Internet of Vehicles can O2O, maps, e-commerce, search, entertainment, and social interactions truly find their place.
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