\n<\/p>\n
We\u2019re well past the revelation that automakers are software companies. But as the industry deepens its software roots, firms are still figuring out which upgrades they\u2019ll charge for \u2014 and what folks are willing to pay.<\/p>\n
Subscription fatigue is real<\/a>; the last thing anybody needs is another recurring charge. It\u2019s even more frustrating when fees unlock features that are pre-built into luxury cars. That\u2019s why BMW walked back<\/a> its contentious software subscription for heated seat access earlier this year. It also explains why Rivian CEO RJ Scaringe seemed determined not to piss off customers while he speculated on the software Rivian will charge for.<\/p>\n Scaringe cited automated driving and augmented reality as upcharge opportunities on a call with investors Tuesday. Charging for autonomy is the \u201cmodel that we think is going to fit,\u201d the CEO said broadly. Rivian vehicles already ship with driver assistance features<\/a>, dubbed Driver+. Yet, Rivian doesn\u2019t offer level 3 autonomy; Driver+ requires drivers pay full attention to the road and it warns them to keep their hands on the wheel.<\/p>\n Still, Rivian recently elected former Waymo CEO John Krafcik<\/a> to its board, and two dozen of Rivian\u2019s open roles mention \u201cautonomy.\u201d The company\u2019s actions, and common sense, signal that more automated driving features are in the works at Rivian, and it\u2019s noteworthy that Scaringe seems to think it\u2019ll become a revenue driver. The CEO didn\u2019t speculate on pricing. Tangentially, Mercedes Benz said it\u2019s making the leap to level 3<\/a> next year in the U.S., via a $2,500-per-year system it calls Drive Pilot.<\/p>\n Scaringe argued on the call that the industry overestimates how much automakers can charge for each software upgrade. \u201cThe idea of charging for heated seats or charging for sort of a binary one or zero \u2014 like turning a feature on and off, we don\u2019t think that that\u2019s going to land well with consumers,\u201d said Scaringe in a dig at BMW.<\/p>\n Yet, Scaringe expressed interest in upcharges for more substantial features, including something like augmented reality. \u201cParticularly as you start to think about AR and the way the vehicle can interact with its environment, we think those represent opportunities for an incremental charge above and beyond the base platform,\u201d Scaringe said.<\/p>\n Scaringe didn\u2019t go into specifics, but when automakers mention in-car AR, usually they\u2019re talking about safety and navigation applications<\/a> that do stuff like overlay arrows on live footage of the road ahead. For better or worse, automakers are also thinking bigger. Audi (via Holoride)<\/a> and BMW (with Meta)<\/a>, for example, have shown interest in developing immersive virtual reality experiences for passengers. Honestly, that sounds like they\u2019re just asking for tummy aches.<\/p>\n<\/p><\/div>\n\u2018We don\u2019t think that that\u2019s going to land well\u2019<\/h2>\n