Technology is changing the way consumers connect with vehicles. With Bill Gates in the driver’s seat, anything can happen.
Name: William Henry “Bill” Gates
Occupation: Entrepreneur, philanthropist, investor, programer
Salary/net worth: $77.7-billion
Claim to fame: Cofounder of Microsoft, the largest software business in the world
Bill Gates is one of the wealthiest and most successful businessmen in the world. The self-made billionaire sits in the top spot as the world’s richest person, ranked no.1 on Forbes 2016 World’s Billionaires list, a title he has held for three years in a row. His net worth is a staggering $77.7-billion.
Most of Gates’ success comes from Microsoft, the company he cofounded in 1975, which is now the largest software business in the world. His philanthropic endeavours through the Bill & Melinda Gates Foundation, which focuses on improving healthcare and education, are enormous and far reaching.
But the 60-year-old entrepreneur also dabbles in other business ventures at home and abroad. He’s the largest shareholder in Canadian National Railway Co. and holds a major stake in AutoNation, the largest dealership chain in the U.S.
But why would a tech tycoon want a stake in car dealerships? The numbers speak for themselves. AutoNation is a Fortune 500 company with more than 360 new vehicle franchises across the U.S.
Its second-quarter 2016 results were impressive, posting revenue of $5.4 billion — up four per cent from the same period last year.
That’s thanks to several factors, including a spike in truck and SUV sales, low gas prices, low interest rates, and a push from AutoNation CEO Mike Jackson to keep growing the business, scooping up smaller car dealerships and adding them to his portfolio.
With Gates’ investment, AutoNation has unprecedented access to IT expertise — a key factor to success for dealerships, manufacturers, and the auto industry moving forward.
IT software can cut costs and raise revenues in parts and service, improve customer acquisition and retention, increase exposure on social media sites, and help develop more advancements in vehicle connectivity, which ultimately gives Microsoft an edge over the competition.
Microsoft already has ties with different OEMs, who already use its cloud-based Azure technology to further connect consumers to their vehicles.
Nowadays, vehicles aren’t just a means of transportation to get from Point A to Point B. They’re mobile workspaces and entertainment hotspots in our quest to be connected 24/7.
Consumers are demanding cars with Internet access and vehicle connectivity. And manufacturers and software companies are responding with innovative technology that lets consumers connect to their vehicles on new levels, such as locking or unlocking car doors from anywhere in the world via a Smartphone app.
So, what’s next? The possibilities are endless — from car-to-car communication to car-to-human connectivity that could allow a vehicle to monitor a driver’s blood-pressure, glucose levels, or their driving habits to determine the best car insurance rates.
There are also big benefits from analyzing the customer data collected in the cloud. With this data, dealers can gather info, tailor advertising, and connect with customers like never before, thereby developing stronger relationships with owners.
The implications are far-reaching. And the potential for profit is big, especially when you’re the largest shareholder in AutoNation.
