A year of digital disruption beckons

There will be turbulence, churn in the auto, media and entertainment sectors — and generally speaking in the corporate world

- PARAN BALAKRISHNAN

When it was first mooted, it sounded like the next big thing. Who could argue private cars stand idle most of the time and that’s a colossal waste of an asset? What could be simpler than ordering a car on your smartphone only when you need it? Not wanting to lose out, the world’s top automakers flung funds into shared car and taxi services. GM launched Maven and Mercedes Benz and BMW jointly turned the ignition on Cars2Go. And for those who like two-wheelers, three years ago auto supplier giant Bosch revved up a scooter-sharing service Coup.

Changing track

Now, the auto industry giants are reversing from these New Age businesses. They’ve poured in money but discovered such businesses are cash-guzzlers and will need more funds than their shareholders will likely countenance. In fact, Mercedes has concluded their customers aren’t likely to jump on the ride-sharing or Uber, Ola, Lyft bandwagon and will still want to have their own vehicles for a while yet.

The auto industry’s dilemma is being replicated in scores of different industries.

Disruption is the hallmark of our age. But as we approach another year, the view’s still murky of which existing industries will survive and which new ones will be forged by the heat of the technological revolution.

In the auto industry, for instance, various unknowns are emerging. The only certainty everyone’s agreed on is that it’ll be a long time before driverless cars will be able to cruise India’s Wild West streets and highways.

Beyond that, the question is will it be car-sharing, hire-taxis, or electric vehicles or a combination? The Indian auto industry, like its international counterpart, is struggling with all these options. Bajaj has just launched its first electric scooter and MG Motor India is taking bookings for its ZS EV.