Horace Dediu and Jim Zellmer discuss the politics, processes and possibilities of cars in light of: 1. Young people deferring drivers licenses. 2. The growth of car sharing. 3. Practical alternative power trains. 4. Urbanization. 5. Increased Congestion. 6. Driverless cars. 7. Rise of the "App Economy".

Hosted by Horace Dediu and Jim Zellmer.

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10: Asleep at the Switch

February 20, 2014 at 12:00PM • 1 hour 4 minutes • Wiki Entry

The orthodox vs. the unorthodox: Tata, Tesla and Toyota. Why might an asymmetric competitor lose and a symmetric competitor win? We begin with Tesla and Apple. We continue with aluminum vehicles and re-visit information asymmetry as Horace exploits it to buy a Mercedes on eBay. We talk about car APIs (Aux input jack and ODBII). Jim muses on the risks used car buyers face from eye-watering transmission costs to the parallels between iPhone mules and American citizens recently prosecuted for flipping new German cars to buyers in mainland China. A brief discussion considers the perils of endless line extension up and down the market, perhaps fueled by financialization. We close by considering the track record and business models of recent “disruptive” entrants from Toyota’s Prius to Tesla and the Renault (Dacia) Logan.