Why Amazon’s Alexa Is More Valuable in Cars



Amazon wants to make Alexa ubiquitous

It’s already been established that Amazon (AMZN) is bullish on its digital assistant, Alexa, and is working hard to make it ubiquitous. Smart speakers have long been touted as the stepping-stone to a smart house.

However, as smart speakers have become popular in most US households, the digital assistant’s next big growth avenue could be the auto sector.

Having a digital assistant in the car is intuitive, as you can’t use a smartphone while driving. Therefore, a digital assistant could potentially be more useful in a car than at home.

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Amazon started shipping Echo Auto

Amazon recently started shipping the Alexa-powered Amazon Echo Auto, which it announced at an event last fall. With the device, you can ask Alexa something like “Where is the nearest restaurant?” when you’re out driving.

The e-commerce behemoth, which recently overtook Microsoft (MSFT) as the most valuable public company in the world in terms of market cap, recently announced that it had sold over 100 million Alexa devices and tens of millions of Echo products.

Amazon’s stock is already up 13.3% year-to-date.


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