ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory hard) came to visit, we ended up talking about two things we both witnessed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into devices for better energy management. A diversity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deepthroat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hammering the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock hard) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A multiplicity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legal.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to suck it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory stiff) came to visit, we ended up talking about two things we both witnessed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into implements for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the swift growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to gargle it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hammering the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock-hard) came to visit, we ended up talking about two things we both eyed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into devices for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the quick growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deepthroat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock-hard) came to visit, we ended up talking about two things we both eyed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the swift growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deep-throat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hammer the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory hard) came to visit, we ended up talking about two things we both witnessed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A multiplicity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the swift growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to gargle it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hammering the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock-hard) came to visit, we ended up talking about two things we both witnessed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A multiplicity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legal.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to gargle it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz began its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hammering the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock-hard) came to visit, we ended up talking about two things we both witnessed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into contraptions for better energy management. A multiplicity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legal.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the prompt growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deepthroat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock-hard) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into devices for better energy management. A multiplicity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the prompt growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to suck it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hammer the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory stiff) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into devices for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legal.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the quick growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to suck it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hammering the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock hard) came to visit, we ended up talking about two things we both eyed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into contraptions for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the swift growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deepthroat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock hard) came to visit, we ended up talking about two things we both witnessed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A diversity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deep-throat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hammering the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rigid) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to gargle it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory hard) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into implements for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deepthroat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz began its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hitting the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rigid) came to visit, we ended up talking about two things we both eyed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into devices for better energy management. A multiplicity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the swift growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deepthroat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hitting the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory hard) came to visit, we ended up talking about two things we both eyed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into contraptions for better energy management. A multiplicity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the quick growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deep-throat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz began its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory hard) came to visit, we ended up talking about two things we both witnessed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into devices for better energy management. A diversity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deep-throat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rigid) came to visit, we ended up talking about two things we both eyed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the prompt growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to suck it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hammer the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hammering the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock hard) came to visit, we ended up talking about two things we both eyed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into devices for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the swift growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deepthroat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz began its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rigid) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A diversity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the swift growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to gargle it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hammering the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory stiff) came to visit, we ended up talking about two things we both eyed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legal.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the quick growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to deepthroat it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rigid) came to visit, we ended up talking about two things we both witnessed coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into devices for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to suck it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hitting the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory hard) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into instruments for better energy management. A multiplicity of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthful Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the quick growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to gargle it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hammer the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory rock hard) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into implements for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world ultimately came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Legitimate.24 billion and in 2012, they are expected to bring in about $7.Trio billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the rapid growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to suck it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz commenced its own Hertz on Request, however I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to strike the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, striking the stuffing out of your profit margins.
Gigaom, ZipCar, Google, cars and the inevitability of the Internet
ZipCar, Google, cars and the inevitability of the Internet
by Om Malik Jan Two, two thousand thirteen – 9:00 PM CDT
In the summer of 2008, when my friend Pip Coburn (a former tech strategist for UBS who runs an investment advisory stiff) came to visit, we ended up talking about two things we both spotted coming: the inevitability of the Internet and how tomorrow’s leaders will amount to zilch if they are not technology natives.
In the past technology startups raided old guard companies (Netscape went to FedEx’s Jim Barksdale, for example) to get management help. In a world where the Internet is ubiquitous, we are going to see old guard companies embrace Silicon Valley types as their leaders.
Five years ago, it seemed a bit farfetched, but today on the very first work day of the fresh year, I was reminded of our tête-à-tête. Why?
Just, look at the two major news stories of today:
- Google (S GOOG) is working with car companies like Hyundai, Kia, Audi and others to embed some of its services inwards their cars.
- Avis (s CAR) is buying car-sharing pioneer, ZipCar (s ZIP) for about $491 million, a forty nine percent premium over the closing price on December 31, 2012.
Recently, I got a chance to rail with a friend who bought a snazzy fresh Audi S-6 car. Given that I don’t drive and am in the minority of people who have no desire to drive, the car seemed like a technological miracle on many levels. The speed and the power may not be to the liking of Jeremy Clarkson, but the multimedia panel will win his approval. The most sugary part of that panel is the navigation system — based on Google Maps.
Today, Google announced that it is working with other major car makers such as Kia and Hyundai, to embed their technologies including maps inwards those cars. Google is an internet services company that is now finding a home in cars, just like Pandora’s Internet music streaming found its way into Ford Motors.
Thermostats with live Internet connections that can be used to control the climate inwards your home remotely was the stuff of science fiction until a few years ago. Now many utilities are playing with the idea of using such Internet-enabled devices, marrying them to data analysis technologies and turning them into implements for better energy management. A multitude of startups born in Silicon Valley — like Nest, Opower and EcoFactor — are getting in on this trend.
These are early sign posts of a connected future where Internet technologies influence even the most mundane of industries. You know, like car rentals, or the power grid, or building climate systems.
At the turn of the century, the idea of sharing a car in increments would get you laughed out of a room. Car rentals were cheap and there were cars lined up outside of airports. Who would then want to rent a car by the hour? Antje Danielson and Robin Pursue, two moms from Boston were crazy to have launched a company called ZipCar in 1999. It took awhile, but the world eventually came around to their idea. It helped that the entire process of renting a car was convoluted, and the cars and technologies inwards those cars very old fashioned.
Zipcar, instead focused on the casual renter — primarily a youthfull Internet native, one who had grown up on the convenience of Google, Amazon (s AMZN) and broadband. The car-renter Two.0 is less likely to have the patience to deal with the inefficient processes of Avis(es) of the world.
The Internet switched a generation’s expectations of consumer services. But the emergence of the iPhone (very first) and Android permitted companies such as ZipCar to create an efficient car-sharing ecosystem, challenge the established guard and grow like a weed.
Here is a little comparison inbetween ZipCar and Avis. In 2005, ZipCar had revenues of $13.7 million (according to their S-1 filing). In 2012, they are estimated to have revenues of $278 million, according to Yahoo data. In comparison, Avis sales for two thousand five were $Eighteen.24 billion and in 2012, they are expected to bring in about $7.Three billion according to analyst estimates collected by Yahoo. Agreed there is a big disparity in those numbers — billions versus mere millions — but still, you can see the demographic shift is pointing to a market reality against Avis.
As my colleague Katie Fehrenbacher pointed out in her analysis of the Avis-ZipCar deal, the acquisition has broader implications for the swift growing trend of sharing stuff and resources. While hitch-a-ride service like Lyft or black-car sharing service Uber might feel scary for both the incumbents (taxi companies) and the legislators, the fact is that our constant state of connectedness is continuously switching the rules of the game. It is unlikely to imagine life, business or society without this connectedness.
Many believe that Avis is going to gargle it and ruin ZipCar. I am in that camp — not because I want either of those companies to fail – but because when large, lumbering and mostly technologically incompetent companies attempt to buy innovation, they often times kill the innovator. (Avis rival Hertz embarked its own Hertz on Request, tho’ I have not been able to assess their success or failure.)
For this deal to work out, here is some free advise for Avis CEO Ronald Nelson: make sure you sign a nice free-agent deal with ZipCar CEO Scott Griffith and his team. Then make him your chief growth officer: one who understands technology, data and demographics to hit the living crap out of your rivals. And give his technology team the liberty to reinvent both the in-car and car-rental practice at the airport. Otherwise, in 2015, there will be another ZipCar-like company, hitting the stuffing out of your profit margins.
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