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Google Cars

snoopy

Top Contributor
Makes me want to short CarSales.com stock...

My first thought was about them, carsales.com.au killer. Will be interesting to see if it takes off, like most of their other Google projects though gut feeling is "no".
 

findtim

Top Contributor
why would they bother? carsales is far more advanced, just go BUY carsales.com.au as they have enough money

while ya at it, go buy realestate.com.au as well.

tim
 

Billy01

Top Contributor
If Google had a project take off ?????????????

I'd walk naked, backwards to Perth, with no shoes.
 

Chris.C

Top Contributor
why would they bother? carsales is far more advanced, just go BUY carsales.com.au as they have enough money
Because carsales is selling at 24 times last years earnings...

Why not just build the platform and steal their entire market in the space of 2 or 3 years... it costs you less.

Not to mention that you'd have to buy out every carsales.com.au equivalent around the world.

Google is better off building a good platform and then just using their leverage to make it happen.

My first thought was about them, carsales.com.au killer. Will be interesting to see if it takes off, like most of their other Google projects though gut feeling is "no".
I think it will depend on if Google decides to somehow integrate their "freemium" feature where they let users list for free try some cross subsidizing via advertising.

ie, it could be interesting if they allow private sellers to list for free and charge dealers per lead. Or allow people to list used cars for sale, but charge manufacturers to promote new cars.
 

Lorenzo

Top Contributor
why would they bother? carsales is far more advanced, just go BUY carsales.com.au as they have enough money

while ya at it, go buy realestate.com.au as well.

tim

How hard can be for Google to outrank on Google a competitor if they want to?

:rolleyes:
 

snoopy

Top Contributor
Not to mention that you'd have to buy out every carsales.com.au equivalent around the world.

I think the that is the major part of the problem, say they spent $100billion buying out all the major car sites, they've then got one big mess in terms of something global. Actually Google does not have the money to do this anyway. They would have to raise a massive amount of capital just to do it for one industry. Shareholders would probably desert them.

They are better off just doing the mediocre, mildly popular add on services that they are doing.
 

Lorenzo

Top Contributor
Indeed...the next step for Google is selling everything so they would just delete all other businesses...that's it.

They own the internet basically.

GAME OVER
 

Shane

Top Contributor
I remember when people in the real estate industry were paranoid that Google real estate search was going to hurt them (and especially realestate.com.au), but that didn't happen...

http://www.smartcompany.com.au/info...tate-search-on-maps-due-to-poor-response.html

And I don't think carsales.com.au has much to worry about either.

Why not just build the platform and steal their entire market in the space of 2 or 3 years... it costs you less.

Zero chance that Google could achieve this in a time frame even close to that.
 

Lorenzo

Top Contributor
anyway I prefer these Google cars:

http://www.news.com.au/technology/driverless-cars-now-street-legal/story-e6frfro0-1226481644498



 

snoopy

Top Contributor
I remember when people in the real estate industry were paranoid that Google real estate search was going to hurt them (and especially realestate.com.au), but that didn't happen...

Yeah remember that one, I haven't heard a thing about it since.
 

Chris.C

Top Contributor
Indeed...the next step for Google is selling everything so they would just delete all other businesses...that's it.

They own the internet basically.

GAME OVER
In the long run the middle man always gets proverbialed.

It won't happen overnight but it makes sense for many markets to consolidate and cut out many middle.

I recently had to buy a car I have long wondered by car manufacturers don't sell new cars direct to consumers online. What's the point of going through a dealer?

Then I found out Subaru actually started doing exactly that this year.

It's 5 years overdue, and the process is unpleasant and still has a lot to be desired, but the writing is on the wall... competition will take care of the rest.

I remember when people in the real estate industry were paranoid that Google real estate search was going to hurt them (and especially realestate.com.au), but that didn't happen...And I don't think carsales.com.au has much to worry about either.
True.

That said, from my perspective if Google WANTS to take over an industry they can definitely MAKE it happen. It's just a case of desire and I suspect in many cases they feel doing so would take them away from their core competency, and they have bigger fish to fry in the meantime so they put these projects on the back burner, but ultimately the profit motive will probably bring them back to these projects overtime.

Zero chance that Google could achieve this in a time frame even close to that.
3 Years in "internet years" is like 15 years in "traditional business years"...

How long did it take for Facebook to supersede MySpace? How long did it take for YouTube to go mainstream? How long did it take Google to take over Yahoo and AltaVista? Hell how long did it take CarSales.com.au to surpass the Trading Post...?

Never underestimate how quickly the internet can unleash the principle of creative destruction on an industry.
 

snoopy

Top Contributor
I recently had to buy a car I have long wondered by car manufacturers don't sell new cars direct to consumers online. What's the point of going through a dealer?

Then I found out Subaru actually started doing exactly that this year.

I think those cars are still sold "through" dealers. It don't think Subaru is just sending a car to someone's house. Not sure how it will play out but there probably needs to be dealer involvement somewhere, ie who services the car, where do you go for a warranty claim.

The other thing is a lot of dealers are owned by the factory, I don't know the % but a lot are selling directly and probably have been for decades.

It's 5 years overdue, and the process is unpleasant and still has a lot to be desired, but the writing is on the wall... competition will take care of the rest.

Most high value transactions are "unpleasant" to the average person though. Realestate, cars, whatever. The sellers don't want to give up margin and the buyers mostly won't pay sticker price, so you've got two bulls in a pen.


That said, from my perspective if Google WANTS to take over an industry they can definitely MAKE it happen. It's just a case of desire and I suspect in many cases they feel doing so would take them away from their core competency, and they have bigger fish to fry in the meantime so they put these projects on the back burner, but ultimately the profit motive will probably bring them back to these projects overtime.

I think Google have taken over one worthwhile industry, paid search.

How long did it take for Facebook to supersede MySpace? How long did it take for YouTube to go mainstream? How long did it take Google to take over Yahoo and AltaVista? Hell how long did it take CarSales.com.au to surpass the Trading Post...?

Never underestimate how quickly the internet can unleash the principle of creative destruction on an industry.

How long did it take for Google to supersede Facebook, or Apple or anyone else other than Yahoo?
 

Shane

Top Contributor
In the long run the middle man always gets proverbialed.

It won't happen overnight but it makes sense for many markets to consolidate and cut out many middle.

I recently had to buy a car I have long wondered by car manufacturers don't sell new cars direct to consumers online. What's the point of going through a dealer?

Then I found out Subaru actually started doing exactly that this year.

It's 5 years overdue, and the process is unpleasant and still has a lot to be desired, but the writing is on the wall... competition will take care of the rest.

Whether it's the auto industry or anything else, the middle man is often an important part of the process. Sometimes they add value, sometimes they don't. Those who do add value are pretty safe in my opinion.

A friend of mine runs a car brokerage business with a few offices around Australia. They sit in the middle between the buyers and the dealers, and you could say they are more at risk than anyone in your middle man theory.

But their business is growing, simply because they add a lot of value for their clients that cannot be replicated by the dealers or manufacturers, or dare I say it, even a website.

The Subaru example you gave is a special case really. It's only the BRZ you can buy online, and that only works because there was so much hype about the car. They'd struggle to sell more than a handful of Imprezas or Libertys each month even if they tried.

I know you like to quote a lot of capitalism theory, and yes there are plenty of examples where middle men have or will disappear, but the reality is that humans are humans and if they see value in a particular service they will use it.
 

Chris.C

Top Contributor
Whether it's the auto industry or anything else, the middle man is often an important part of the process. Sometimes they add value, sometimes they don't. Those who do add value are pretty safe in my opinion.
That depends.

Those that add value aren't "safe" they have probably just bought themselves time.

And just because you add value doesn't mean that your "value adding" service can't integrated into another party's production process.

Innovation and increasing productivity is always required to stay ahead of the pack, what is considered a "value add" today, is just standard tomorrow.

A friend of mine runs a car brokerage business with a few offices around Australia. They sit in the middle between the buyers and the dealers, and you could say they are more at risk than anyone in your middle man theory.
So you don't think they are at risk?

I wouldn't be so sure, because just a couple of months ago I made the recommendation to my own father, who sells capital equipment, that he does enough volume of sales on outsourced finance products to bring his financing inhouse rather than outsourcing because it will increase his margins/profitability.

And whilst he might not do it tomorrow, he will be forced to do it over the longer term in order to remain competitive.

But their business is growing, simply because they add a lot of value for their clients that cannot be replicated by the dealers or manufacturers, or dare I say it, even a website.
Why can't it be replicated. Capital is freely available to everyone. If anything it is SUPER easy to replicate for larger dealers because of the low overheads.

That's why more car manufacturers are developing their own finance companies and offering their own finance products.

The Subaru example you gave is a special case really. It's only the BRZ you can buy online, and that only works because there was so much hype about the car. They'd struggle to sell more than a handful of Imprezas or Libertys each month even if they tried.
Yes only BRZ was offered, but I fail to see what difference it makes what cars are sold.

If cars are sold direct online rather than via physical dealerships it will potentially mean manufacturers can reduce overheads by shutting down dealerships and staffing costs which translates into lower car prices.

I know you like to quote a lot of capitalism theory, and yes there are plenty of examples where middle men have or will disappear, but the reality is that humans are humans and if they see value in a particular service they will use it.
I don't know what your point is here...

Humans will always look to maximise value, the reason people sell their car on CarSales rather than via the Trading Post is because it offers the same or more value but is more efficient and lower cost.

People list their properties for sale on RealEstate.com.au because it offers more value and is more efficient and lower cost.

Most people buy shares via online brokers these days than via real world brokers, because it offers the same "value" but is more efficient and lower cost.

People choose to use Google over the Yellow Pages because it offers more value and is more efficient and lower cost.

This is how capitalism works.

And unfortuantely Google is VERY good at entering markets and creating products or services that are more efficient and lower/no cost because they are able to generate more revenues that other party's are unable to due to their advertising network.

I'm not saying that anything will change overnight, all I'm saying is that inevitably customers/money will flow to those entities that offer the most value in the most efficient and low cost way.
 

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