May 1, 2020 — SiriusXM-owned Automatic Labs announced on its website it is shutting down operations on May 28, 2020, due to COVID-19.
In a statement on its website, the company says, “With fewer consumers purchasing and leasing vehicles and drivers on the road, we unfortunately do not see a path forward for our business. These are unprecedented times, and with so much uncertainty ahead, we have made the difficult decision to discontinue the Automatic connected car product, service and platform.”
The company was founded in 2011. SiriusXM acquired Automatic for $115 million in 2017.
CDK Global was an early investor in the connected car platform in 2015 in a $24 million round led by USAA. Other investors included Comcast Ventures, Y Combinator, Anthemis Group, Amicus Capital, RPM Ventures, and early angel investors Dan Rose, Mark Goines, Rob Chandhok, and Jared Kopf. Automatic had raised a reported $32 million prior to its acquisition.
CDK showcased Automatic’s connected vehicle solutions for car dealers as part of its Fortellis platform unveiling at the National Automobile Dealers convention in 2018.
In February of this year, AutoNation announced customers purchasing a pre-owned vehicle from one of its five AutoNation USA used-car centers would be able to receive Automatic’s plug-in adapter and subscription at no extra cost.
Plugging the adapter into the vehicle’s OBD port allowed customers a bevy of connected services including:
- Crash alert;
- Roadside assistance;
- Real-time vehicle location monitoring and sharing;
- Vehicle health and performance monitoring;
- Recall notifications and service reminders;
- Integration with smart home devices.
Competitors in the space include Zubie, which has focused on fleet management connected services and Spireon, which has solutions for car dealers, trucking companies, lenders, and fleet operations.