Amid reports that GM is soon to fall into bankruptcy, the position of OnStar appears to be equally precarious. Recent weeks have been a demonstration in PR that any homeowner trying to establish “curb appeal” can appreciate. The only thing lacking is the giant “FOR SALE” sign. The real question is who would want to purchase this telematics posterchild? A recent conversation with a source well familiar with the situation revealed 2 interested (and interesting) suitors.
“I never think of the future. It comes soon enough”, Albert Einstein.
Verizon Wireless
Verizon’s existing relationship with OnStar as its primary network in the United States makes them a logical purchaser of the service. Since 2004 customers have been able to integrate their handheld wireless service with their OnStar account. It would also give Verizon the ability to offer more robust services like in-car entertainment. Unfortunately, Verizon has historically been very slow to adopt new technologies and the 6 million subscribers currently using OnStar may not wait for them to iron out the kinks.
Allstate Insurance
Personally, I laughed when this was suggested. That is, until I saw a commercial announcing that Nationwide Insurance released a free app on the iTunes Store to guide customers gathering needed information after a car accident. I downloaded the app myself and, even though I’m not a Nationwide customer, thought it was ingenious. Those who are customers can use the app to initiate the claims process.
What does this have to do with Allstate? It indicates an adoption of technology by another major insurance carrier (other than Progressive Insurance, whose Pay As You Drive (PAYD) program has yet to be embraced). Now that 2 major providers are “in the game” it won’t take long for the others to follow. Allstate has been providing GPS-enabled “bait” cars to police for years and have had a visible presence at recent Telematics conventions. An increase of 6 million telematics customers — with the potential to migrate them over to their core business — might be to much to pass up.