Spotify ends Car Thing, its product for the car
Spotify has decided to stop production of the Car Thing, its product that made it easier to listen to the streaming service in the car. It’s (possibly) interesting for cars that don’t have Apple CarPlay or Android Auto.
Spotify’s gross margin was negatively impacted by the decision to stop manufacturing the Car Thing. While the company has not found success in the hardware arena, it is doing well in the software arena. Its user base remains high with 188 million paid subscribers, as it announced this week.
Spotify declared :
The goal of Spotify’s exploration of the Car Thing was to better understand in-car listening and bring audio within reach of more users and vehicles. Due to several factors, including product demand and supply chain issues, we have decided to discontinue production of the Car Thing. Existing devices will work as expected. This initiative has provided useful lessons and we continue to see the car as an important place for audio.
Initially, the product required an invitation to purchase it. It dates back to April 2021. In October of the same year, anyone could buy it without an invite needed. It is worth noting, however, that the Car Thing is only available in the United States, and has been so from the start. The current price is $50, which is half the price at launch.