Klashwerks, a 4-year-old Ottawa producer of connected-car devices, announced at the end of last year that it will direct its business to automotive fleets.
Raven markets facial-recognition technology
Klashwerks, founded by Russell Ure, 62, produces an inexpensive (U.S. $299) facial-recognition system called Raven that can be installed in existing vehicles for security and driver monitoring. Ure is motivated by forecasts that the vehicle fleet market will quadruple over the next four years with the growth of companies such as Amazon and Uber. But Ure intends to focus on the aftermarket instead of working directly with automakers. He explained his views to News Editor Lindsay Chappell.
Q: How are you selling your Raven system?
A: Direct to consumer, from our website. But we're also talking to retailers.
Why limit Raven to the aftermarket? Why not market it to automakers?
Automotive OEMs are in crisis. The industry is going to change significantly over the next five to 10 years.
What we have is technology that someone can put into their existing vehicles. That's the level of freedom and flexibility they want. They don't want to have to go back to the automaker to get an update. Customers don't want to buy expensive technologies that will be obsolete in a year or two.
Is there something particularly helpful about entering through the aftermarket?
The aftermarket has always been the most innovative part of the market. It's been hot-rodding or customization of your car. But now, as we start our business, we're seeing a change in what the aftermarket can do. You're seeing that technology is changing rapidly, and this is the way to get it out.
What is it about the OE business that makes that proposition difficult?
The automakers face so many constraints. They're heavily invested in existing technologies. They have millions of lines of software code that they've written or need to write. Us going to them and saying, "Here, this technology will be good for you" — it's like talking to a wall.
Are you saying you have no interest in talking to possible OE customers?
No, we continue to talk to them. We've met with them. But realistically, technology is moving too fast. Over the past year, we've made considerable innovations in the product. I expect that over this year, we'll make even more.
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