GM Writes Off Cruise Robotaxi Business – Lessons Learned

After almost a decade, and investing $10B, GM has simply quit the Robotaxi effort.  It joins a long list of big-time investors who wrote off more billions – Uber, Lyft, Ford and even Apple. Why were they so wrong?  This podcast explains how the lack of a Value Proposition meant these efforts were unlikely to succeed, even with “all the money in the world.”  Lacking a clear reason for their existence, this was money chasing technology for technology’s sake – versus customer needs.

 

We can learn from this lesson not only how to be smart about investing in new markets, but also how to get more focused with our offerings in order to improve our Value Proposition and chances of success – as has happened with the long-haul driverless truck segment.  And, we can learn how tracking investments by the giants create opportunities for SMBs to leverage their investments for gains in smaller businesses.  When we can’t afford to invest like giants we can afford to adapt new developments for the good of our customers and our business.

 

Thinking Points:

• Are you sure you know your Value Proposition – and the poorly met needs of customers?  Do you know what they need and don’t have a solution for today?
• Do you look for segments where needs are particularly acute, and offer much higher returns for implementing new solutions that add value?
• Are you focused on understanding were companies with big money are investing their money, so you can leverage their investments into solutions for your customers?
• Are you willing to be an early adopter of new technologies so you can lead your customers to better solutions, rather than cautiously waiting and thus letting competitors get the edge?