GM's Maven Purchase Part of Trend To Diversify, Create Market

[Gorehamj]

John Goreham
Contributing Writer, GM-Trucks.com
1/21/2016

General Motors is either the most savvy mobility shopper, or maybe the worst. We reported earlier this month that GM had bought into Lyft, which is basically Uber, but less popular. This week, GM is rolling a wheelbarrow of Benjamins toward Maven, which is basically Zipcar, but less popular. GM also bought Sidecar recently which had closed for business after getting its butt-kicked by Uber. Is GM seeing that the market will be large enough for multiple players in the segments that these companies serve or is the company burning up cash to avoid using its tax exemptions?

GM is interested in being part of the future of "personal mobility" meaning cars that people use, but don't own. By buying into these companies GM sets itself up as their captive supplier of cars. So it will be an expansion of its fleet business in a sense. GM also wants to be big into car connectivity and this is an ideal platform for GM to do that. GM's information about maven included this blurb:

"Maven customers will experience seamless smartphone and keyless integration with the vehicle. Maven customers use its app to search for and reserve a vehicle by location or car type and unlock the vehicle with their smartphone. The app also enables remote functions such as starting, heating or cooling and more. Customers can bring their digital lives into the vehicle through Apple CarPlay, Android Auto, OnStar, SiriusXM radio and 4GLTE wireless."

 

What say you GM-Trucks participants? Is GM spending money wisely by buying into the secondary players in these segments, or is this a fad that will cost GM money?

 

 

 

[Chevor]

I think more money needs to be spent keeping drivers attention on the road, not distracting them from it.