Source of the image: Getty Images. On the basis of these offers, Amazon is becoming more and more serious about claiming a connected vehicle. It's a smart decision considering its technological rivals Apple and AlphabetThe Waymo are already making progress in this space. <h2 class = "canvases-canvases-texts Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Breaking the connected car market"data-reactid =" 27 ">Breaking the connected car market
Amazon did not specify how it intended to earn money by integrating Alexa into vehicles, but a potential benefit could come from collecting data from searches for destinations, reservations, routes and other Alexa requests, and then using this information to refine the company's advertising. .Amazon is now the third largest digital advertising company in the United States, behind Google and Facebook. Exploiting Alexa data from vehicles could help Amazon better understand its users and thereby help the company sell more relevant ads for them. Even if Amazon did not end up using connected car data in this way, the company probably sees in its partnerships with Telenav and HERE a foot in the booming market. The global market for connected cars was only $ 63 billion in 2017, but it is expected to more than triple, reaching $ 225 billion by 2025, according to Allied Market Research. Outside the connected car market, Apple's goal now to develop own autonomous driving system, that will begin between 2023 and 2025. Meanwhile, Waymo's Alphabet has already launched a commercial service without driverThe Amazon can not compete with Apple and Google in the field of autonomous vehicles, but can make a place for itself in connected cars with the most popular digital voice assistant. The market is still in its infancy. Investors will therefore have to wait patiently until they see how Amazon's strategy will unfold. But getting Alexa in as many vehicles as possible is a great first step. More from The Motley Fool John Mackey, CEO of Whole Foods Market, an affiliate of Amazon, is a board member of The Motley Fool. Suzanne Frey, a member of the Alphabet Executive, is a member of The Motley Fool's board of directors. Chris Neiger has no position in the mentioned actions. The Motley Fool has stock and recommends Alphabet (A Shares), Alphabet (C Shares), Amazon, Apple and Facebook. The Motley Fool offers the following options: long calls from $ 150 to January 2020 for Apple and $ 155 short calls from January 2020 to Apple. The Motley Fool has a disclosure policy.