Chinese e-commerce giant Alibaba Group Holding Ltd. brings navigation solutions back to cars. (Photo : REUTERS)
China's e-commerce heavyweight Alibaba Group Holding is cashing in on the booming market of connected cars with the launch of Amap Auto, a real-time location-based solution developed by the company's digital mapping support, AutoNavi Holdings Ltd.
Amap Auto can provide real-time traffic data and suggest alternative routes to drivers. The system is meant to bring navigation solutions back to cars at a time where most drivers rely on their smartphones to find the best routes and check road situation.
Likewise, the product is meant to redeem the mapping capabilities of cars as some vehicles with pre-installed GPS may not give accurate information all the time.
"The [pre-installed] GPS cannot offer real-time information and their data are not always up-to-date," AutoNavi's Wei Dong was quoted as saying in a China Daily report.
"There are huge demands for online real-time navigation systems among drivers. With the launch of our new product, we hope that the navigation systems for drivers can go back to cars rather than being shouldered by smartphones," Wei added.
In 2014, Alibaba fully acquired AutoNavi, spending $1.13 billion on the remaining 72 percent shares in the company. Alibaba earlier bought 28 percent of the China-based online mapping firm.
Data gathered by China Daily reveals that about 279 million vehicles have been recorded in China by the end of 2015, which bodes well for Alibaba's plan to pre-install cars with their new product.
Auto companies affiliated with AutoNavi will be the first ones to adopt the system. This includes Zhejiang Geely Holding Group Co. Ltd. and Changan Automobile Co. Ltd.
According to analysts, the emergence of services similar to what Amap Auto offers is an indication that the market is moving toward making cars smarter, just like how mobile phones transformed into an intelligent device necessary in consumers' lives today.
"Cars will be like the next smartphones," analyst Zhang Xu said in an interview with China Daily. "When they connect to the Internet and connect with each other, a growing number of business opportunities will emerge as service providers and retailers can interact with customers more effectively."
