Could the shift to connected vehicles turn modern cars into “marketplaces on wheels”?

Imagine pulling into a gas station, and instead of fumbling for your wallet, your car automatically pays for the fuel. Now, imagine ordering your favorite coffee mid-commute, with your car seamlessly placing the order and navigating you to a pickup point—all without leaving the driver’s seat. This isn’t science fiction; it’s the reality of in-vehicle commerce, an innovation transforming cars into seamless shopping and payment platforms..

In-vehicle commerce leverages connected car technology to enable purchases directly from a vehicle’s infotainment system. From paying for fuel, parking, and tolls to ordering food and groceries, drivers and passengers can complete transactions effortlessly. Digital wallets and partnerships with payment providers power these systems, delivering convenience without ever leaving the driver’s seat.

Many leading OEMs and innovative startups are rapidly advancing in-vehicle commerce platforms to elevate the driving experience. Two recent examples of this trend are Kia and BMW, both of which have introduced in-car payment systems. These allow drivers to seamlessly locate parking spots or refueling stations, navigate to them, and complete the payment directly through their infotainment systems. By doing so, Kia and BMW join other prominent automakers like Hyundai, Mercedes-Benz, and Skoda, all of whom have launched similar services in the past year, each partnering with unique commercial and payment providers. A shared commitment among these OEMs is the promise to expand in-car commerce capabilities, offering more services across broader geographic regions in the near future.

The rising interest in in-car commerce solutions aligns closely with the rapid growth of startups in this space. A standout example is ryd, an in-car digital payments platform that raised approximately $12 million in 2021 and has since secured major partnerships with OEMs, credit companies, and various service providers to expand its reach. Meanwhile, other early stage companies, such as the in-car commerce platform Mavi which raised $3M earlier this year, are also making remarkable progress, contributing to the momentum of this emerging market and showcasing its vast potential.

In-vehicle commerce offers numerous advantages for all stakeholders. It creates new revenue streams for OEMs by monetizing data and offering premium connected services, it allows sellers increased access to consumers, and it provides vehicle owners with the convenience of making purchases without leaving their vehicle.
Yet, the path to widespread adoption comes with its share of challenges. Chief among them are data security and privacy, as vehicles handle sensitive payment information and personal data that must be protected. Additionally, creating a seamless, user-friendly system is essential—one that enables OEMs and service providers to establish profitable channels without compromising the driver’s experience. Striking this balance will be crucial for achieving mass adoption and ensuring that in-car commerce enhances, rather than disrupts, the journey.

Looking ahead, the future of in-vehicle commerce is intertwined with the rise of autonomous driving. As self-driving technology advances, vehicles could transform into mobile retail spaces or service hubs, providing much more than getting from A to B. With its immense potential, in-vehicle commerce is poised to become a driving force in the evolution of modern mobility, offering both innovation and convenience in the years to come.

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How do drones have the potential to revolutionize a wide range of industries, including automotive?

For the most part, this blog is about everything related to ground-based vehicles. However, we think it's time to talk about a mobile vehicle whose importance in countless industries is becoming increasingly significant. We're talking drones. 

Drones are small aircraft that operate without a human pilot onboard. They can be controlled remotely or programmed to fly autonomously using advanced technologies like AI and GPS. Equipped with cameras, sensors, communication systems, and other specialized payloads, drones are becoming essential tools in various industries. Their key advantages—efficiency, safety, and sustainability—make them invaluable in both civilian and commercial applications.

The first type of drone specializes in monitoring. Equipped with cameras, sensors, and advanced automated systems, these drones can survey defined areas and track activity within them. Their ability to cover vast regions and access locations that are difficult or hazardous for humans makes them invaluable for a range of monitoring operations. Use cases span diverse industries—drones can replace soldiers by conducting surveillance in high-risk areas for defense, or perform computer vision-based scans for industrial applications, including agriculture, forestry, large factories, and energy networks. A recent example of innovation in this field is Skydio, an American drone manufacturer that raised $170 million last month, bringing its total funding to $400 million. Skydio’s drones are equipped with cutting-edge cameras, sensors, and software designed to manage complex drone operations autonomously. Their solutions serve a variety of sectors, including defense, public safety, energy, utilities, and other industrial applications, highlighting the growing importance of drones in critical monitoring tasks across industries.

Another key type of drone is designed for carrying loads, offering innovative solutions for transporting goods efficiently and quickly. These drones are equipped with powerful motors, advanced navigation systems, and payload management technologies that enable them to deliver a wide range of items. The use cases for load-carrying drones are expanding rapidly across diverse industries, offering innovative solutions for last-mile deliveries of food, packages, and even critical medical supplies, allowing much faster and more efficient way to deliver goods from A to B. Beyond consumer logistics, these drones are also being utilized in industrial settings, where they can transport materials along assembly lines or transfer goods between different sites within the same industrial complex, streamlining operations and boosting efficiency. As the practicality of these solutions becomes increasingly evident, activity in the field continues to surge. A notable example is Zipline, a leader in delivery drone technology, which earlier this year announced a significant milestone—completing one million autonomous deliveries—highlighting the growing impact and adoption of drone-based logistics.

In the automotive industry, drones remain in the early stages of adoption, but their potential is undeniable. For instance, drones could revolutionize traffic management by monitoring specific areas and providing real-time data to optimize traffic flow. They could also assist autonomous vehicles by conducting pre-mapping or real-time mapping of environments, ensuring safer navigation and more efficient routing.
As the world shifts toward connected, autonomous mobility, drones could become a vital part of the broader transportation ecosystem, working alongside cars to enhance navigation, safety, and efficiency.

The potential use cases for drones appear boundless, with applications that span monitoring, logistics, and even mobility. As advancements in drone technology continue, their role in shaping industries, including automotive, will only grow.

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How did car insurance evolve from a traditional industry into a hub of dynamic innovation?

Car insurance has long been seen as a traditional, even unremarkable, industry. But as the automotive landscape transforms, insurance is evolving at a rapid pace to keep up with the challenges and opportunities of modern mobility. From the rise of electric vehicles to the explosion of connected car data and new ownership models, insurers are embracing innovation to meet the demands of a changing world.

One of the key drivers of innovation is the explosion of data generated by connected vehicles. Today’s cars provide real-time data on everything from driving behavior to the various vehicle’s components performance. This enables insurers to improve risk assessment through advanced data analysis systems and AI models, offering more personalized policies and proactive risk management. Companies such as Upstream or Tactile Mobility, both of Drive TLV’s Fastlane program alumni, can offer their data-driven insights to insurers for better assessments. For example, besides providing insights about the driving behavior and car components condition, Upstream can also offer valuable data about the vehicle’s cyber threats, while Tactile can provide important information about road and environment conditions.

The rise of mobility-as-a-service (MaaS) models, such as car sharing and ride-hailing, has also reshaped insurance needs. Usage-based insurance (UBI), a dynamic model that adjusts premiums based on actual driving behavior and drive conditions, making it especially valuable in the growing MaaS sector. It leverages technologies such as telematics, GPS, IoT sensors, and mobile apps to collect data on each specific driver and trip, as well as AI and machine learning systems to analyze that data and create customized risk assessments. In the MaaS ecosystem, where shared vehicles and ride-hailing services are central, UBI ensures fairer, usage-driven insurance rates that reflect the unique risk profiles of each trip. For example, another Drive TLV’s alumni, Connected Insurance, developed an AI-based platform that allows it to analyze real time vehicle and trip data, together with historical data and contextual data considering specifying drive conditions, to create more personalized insurance coverage.  

Lastly, the electrification of vehicles presents distinct challenges for insurers, ranging from battery-related risks to concerns about more severe accidents due to the increased weight of EVs, as well as vulnerabilities in charging infrastructure. Innovations within the EV ecosystem are tackling these issues through solutions such as advanced battery management systems, cybersecurity measures, and adaptive insurance models tailored to the unique characteristics of EV components. As EV adoption continues to rise, the technologies supporting insurers are expected to evolve and expand, offering enhanced tools to manage emerging risks effectively.

The future of car insurance is as dynamic as the automotive industry itself. With the rise of autonomous vehicles on the horizon, insurers will soon grapple with even more profound questions about liability, coverage models, and risk distribution. What was once an industry of predictable policies is now at the forefront of technological and operational advancements—keeping pace with the cars it covers.

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