Why car companies should be terrified of Google Auto
On Monday, Mercedes Benz, Audi and BMW announced an unlikely partnership. The three car companies dropped a collective $3.1 billion to buy Nokia’s digital mapping tech, dubbed HERE.
“HERE will play a key role in the digital revolution of mobility, combining high definition maps and data from vehicles to make travel safer and easier for everyone,” said BMW honcho Harald Krüger, in a press release that promised that HERE’s services and products would remain available to “all customers from the automotive industry and other sectors.”
The deal, which is expected to close in early 2016, is a clear signal that the auto industry plans to compete head-to-head with Google and other tech companies developing self-driving cars. And it’s a big, and very telling, step: individual car companies are willing to join forces with competitors to have a better shot at winning the robocar race. Because when it comes to driverless cars, the best manufacturers will be those with the best, most up-to-date maps. And that honor currently goes to Google and its 2013 acquisition Waze.
The thing about autonomous cars is that they will need to know where they’re going, at a very granular level, in order to be safe and reliable. The HERE acquisition likely reflects car companies’ realization that they seriously lag behind Google when it comes to artificial intelligence and mapping.
“Carmakers have some catchup to do,” said Chris Nicholson, CEO of AI company Skymind. “It’s a huge transition for them to make.”
The search giant, which stealthily created a robocar company in 2011, has become a clear leader in autonomous cars, and has a wealth of mapping data already. It started its mapping project 10 years ago. Since then, it’s revved up its efforts to map every single corner of the earth—including far-flung places like the Grand Canyon where digital maps traditionally had blind spots—with its Google Street View fleet, which is made up of both cars and pedestrians. It augmented that when it bought Waze, a company that crowdsources navigation data, for $1 billion.
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