Fiat Chrysler vehicles to run Android software
Fiat Chrysler Automobiles (FCAU) has selected Google (GOOGL) to provide it with a software system for its vehicles. Google built a version of its ubiquitous Android operating system that automakers can adopt in their vehicles for infotainment capabilities.
Fiat Chrysler wants to adopt the Android software in all its vehicles by 2022, Reuters reported. Fiat Chrysler vehicles equipped with the Android software are expected to begin rolling out in the second half of 2019. The Android software for vehicles provides a platform for drivers to access music or video, receive traffic updates, and much more that enhance driving experience.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Race for vehicle software business
Opportunity for Google to extend the reach of its products
Putting its software in vehicles provides another avenue for Google to extend the reach of its products, which could, in turn, allow it to generate more revenue. For example, Google could plug in to Android’s vehicle platform to deliver targeted ads aimed at drivers, potentially allowing the company to capture more advertising dollars.
At the moment, Google derives the vast majority of its revenue from advertising. The company’s advertising revenue jumped 15.4% year-over-year to $30.7 billion in the first quarter, contributing 85% of total revenue of $36.3 billion at its parent, Alphabet. Advertising contributed 72% of revenue at Yandex (YNDX) in the first quarter.