Used Cars From Amazon, GM Integrates nVidia, Amazon’s 99% Repeat Purchases

Paul J Daly  0:01  
Good morning. It is Thursday, March 20. We have how many days? Soda con Kyle, how many 50? Not enough. Not enough. Talking about Amazon and Nvidia, GM and Amazon again today. How about Amazon twice? We're gonna bookend it with the old Amazon combo.

Kyle Mountsier  0:19  
Con website says 53 days, which is not enough days, and too many all at the same time.

Paul J Daly  0:26  
So I had a dream last night. This is the second dream I had about, oh,

Kyle Mountsier  0:31  
he's dreaming about the conference, like every everyone, just so everyone knows everyone on the ASOTU team, at some point, starts dreaming about the conference, good or bad, just like one of those things. Well,

Paul J Daly  0:41  
Anne Marie had the first ones. She reported the first ASOTU CON dreams this year. It was about a month ago, she had my first ASOTU CON dream. So this year, I mean, last night, it was I showed up at, like, a venue. It reminded me of when we did a soda live tonight, I showed up at this venue. It was bigger, though probably had like 1000 people. Al, we were everybody was there. Al was there, the whole band, no, the live, yeah, he did the live tonight. Band was there. We're loading the drum kit in, and the lights and like, people are coming in. It's buzzing, right? I'm excited the band. I love it when the band's there, right, right? So we're gonna do some music. We're gonna do some I get up on stage, the lights come on, the show starts. There's all these people in the audience. The audience. The audience was like a lot of families, too. And I realized when the lights came on that we hadn't talked at all about what we were actually gonna do on stage,

Unknown Speaker  1:31  
but, but, like, no one talked about

Paul J Daly  1:33  
it, and then, and then I started. So I'm like, What do I do? I'm gonna start working the crowd, right? Nothing. So I start asking kids, like teenagers. I was like, this band knows all the songs, right? They know everything. So I'm like, what are some of your favorite songs? And they just started, like, ripping off these deep cuts I'd never heard of. And I was like, and then I woke up,

Kyle Mountsier  1:52  
oh, man, see, but there's, there's some truth to that. Because, like, we just, like, we're like, jam on the one, hit the 451451, and go right, like, that's how, yeah, me for the changes, no,

Paul J Daly  2:08  
from Back to the Future, right? Michael J Fox, who's like blues riff and B follow me for the changes that he's just a trip. That's good, I know, but we're

Kyle Mountsier  2:18  
gonna be there. It's gonna be a bunch of fun. If you have a company that wants to pitch what you do to a room full of industry partners, dealers, innovators, even investors, will be in the room and will be judging. You can go to asotu.com forward slash pitch tank and ASOTU con.com forward slash pitch tank, and you can find the submission form to be included in pitch tank submissions will end soon, so get in there. Yeah,

Paul J Daly  2:47  
everyone always asks, Can I pitch? Yes, pitch is allowed. Pitch is welcome. That's

Kyle Mountsier  2:52  
right. You gotta be there because, yeah, because the the closer we get to the products that are serving dealers, and dealers getting closer to those. The faster we innovate, the faster we get better for consumers. So I

Paul J Daly  3:04  
mean, it's kind of the theme that your pitches converge, innovate, disrupt, repeat,

Unknown Speaker  3:09  
free peace, repeat.

Paul J Daly  3:11  
I was talking about some news. Amazon is set at sites on used cars. Now, the company, which has already been reporting its new car shopping platform in select US markets, is gearing up to introduce used car inventory. Amazon Auto is expanded from 58 markets to 68 since its national ad campaign with Hyundai in January. Amazon's director of autos, fan Jin confirmed that adding used car inventory is on the platform. Is the platform's next big milestone, enabling dealers to sell both new and used inventory in a fully e commerce environment. They're also exploring ways to offer FnI products in a low pressure, consumer friendly format, striking a balance between profitability for dealers and ease of purchase for consumers. Here's a quote, more and more customers are comfortable with a fully online transaction. Jin said, While noting that some many still want an in person, touch point between fine before finalizing purchases. It feels like,

Kyle Mountsier  4:05  
yeah, we know that. We know that. I think Amazon is figuring that out. What stay tuned for. Story number three today. You're gonna want to listen to that one, because here's, here's my argument is, if I am auto trader, cars.com car gurus, any third party marketplace. Right now I am scared pivoting, working on refining my strategy for overall audience retention, for driving my brand awareness in all of the markets that Amazon autos is entering. That's the first thing second. If I'm a dealer, I am getting on board ASAP, ASAP, because this is a third party marketplace, and Amazon understands that they still have people that want to be in person. They're just giving them another shopping journey to build awareness. I'm looking

Paul J Daly  4:56  
all over and you're like, What is he looking for? I'm looking for like, I. Looking for my copy of the innovation stack by Jim McKelvey, because he tells a story in the beginning when they were making square in these little credit card readers, and all of a sudden they got the worst news that any small startup company can get. Amazon's getting into payments processing, and they're developing their own card reader, and that seemingly felt like the kiss of death. However, that story ended by Amazon pulling out of that industry and sending every one of the people that they had us acquired as customers a little Square Reader. So spoiler alert, but the book is worth reading.

Kyle Mountsier  5:34  
It is worth reading. It is worth reading. I think kind of part of Kyle and my origin story that book, it is an origin story. Yeah, I still think this, this has staying power, though. I think, I think it's more natural of us shopping behavior for for people to engage with.

Paul J Daly  5:51  
I agree. I'm just, I mean, I'm not saying it's gonna go away. I was just trying to make people feel like, yeah, yeah, better at what we do. We are better what we do. But, yeah, but they've brought, they've played, they've got a whole bunch of auto people. They're real tight to them. No, they do auto attack partners, auto people. We'll see what happens. Yep, dealers that are already engaged. But I think you're right, treating it like a third party marketplace and not like something that's going to

Kyle Mountsier  6:14  
no people, a competitor dealer, and they like, I've talked to multiple people at Amazon that recognize that they need the dealer, right? Absolutely. Yeah, it's not a competitor. It's a, it's a, it's a broad and third party marketplace, for sure. Well, speaking

Paul J Daly  6:27  
of tech companies and automotive getting close, stop, wow, yeah, they are. It's a viable segue. At Nvidia's annual GTC conference, GM announced a major partnership with the chip maker to integrate AI into its vehicles, factories and robotics. GM will use the NVIDIA Omniverse platform to stimulate real assembly lines, reducing downtime, improving efficiency. Nvidia's AI training software will help GMs factory robots improve tasks like precision welding and material handing handling. Next Gen GM cars will also feature in videos drive AGX system on a chip capable of 1000 trillion that's 1000 trillion operations per second to an as this feels like a super computer or like a quantum computer, almost. I know it's not to enhance autonomous driving. While GM super cruise is highly regarded, the automaker is looking to in videos tech to advance its self driving capabilities, their auto mode. Nvidia automotive division is still small. The article notes, generating 5 billion in revenue this year. But VP Ali county sees a trillion dollar opportunity in automotive. Yeah, for

Kyle Mountsier  7:36  
sure, the trillion dollar opportunity is no doubt. It's going to be a question on whether or not the man the auto manufacturers, can take the technology that exists that the rest of the world is utilizing for software development and implement it in their onboard systems, right? And if GM can do it the I mean, these are the, these are the gold standard and chips right now, right? It's basically Nvidia and Qualcomm out there for all the money across the across the world, and Nvidia is leading the charge and has all of the funding because of their interactivity with AI. And so if you're shorter and up to a buddy, to a partner, probably the right one if you're trying to implement AI solutions, both in the factory and in the driving style, still can't believe they don't have Apple CarPlay.

Paul J Daly  8:20  
I know, hey, I I gotta say buying the buying the Ford f1 50 lightning versus Evie Silverado, Apple CarPlay not being in that thing dry. I mean, I don't know. The flip side is the Pole Star two that I've rented several times now, the Google Maps work so good in it. I'm trying to matter. I'm kind of like, why would I need CarPlay? It works so well. The interface is so clean. So I got my music on the Bluetooth. I got the Google Maps built into the car. The voice recognition works. I don't know, maybe they can pull it

Kyle Mountsier  8:51  
off. Yeah, I don't. I mean, this is where you need UX designers, yes, not just UI designers, right? Like, you can build a beautiful UI, but if the UX isn't clean, seamless, easy to use, like quick, quick to understand, not distracting from the road, like, that's that's where all of this kind of like crumbles. If that doesn't work,

Paul J Daly  9:12  
out of doubt, alright. Speaking of,

Kyle Mountsier  9:16  
back to Amazon. I already stopped. I already got this one going. Hey, a new report from numerator reveals key insights into Amazon shopper demographics and loyalty, highlighting both strengths and potential areas for growth. Here's the big strength, Amazon boasts a staggering, staggering 99% repeat purchase rate, far exceeding the E commerce industry average of 28 to 30% 75% one Hold on, 70 Yeah, it is. It's unbelievable. Go ahead. 75% of Amazon shoppers are women, and they are more likely than the average consumer to use the platform. Oh,

Paul J Daly  9:53  
so you're saying. What you're telling me is what who everyone knows is the decision maker in a family on a. Vehicle even if they're not the one running point is that one that's on Amazon making the decision

Kyle Mountsier  10:06  
without I'm going to be presented with vehicle opportunity without sales person interference. Wow, that's a key. Here's here's another one. Amazon sees higher engagement from rural and middle income shoppers, but urban and lower income demographics are less active, while Black, Hispanic and Asian customers all index below the national average. So a little bit of disparity in like socio economic or cultural interaction. Baby Boomers, 33% of Amazon shoppers, though, they're slightly less likely to shop there than other generations. So like as a user base. They are, they're huge. I mean, we know that because baby boomers is a huge generation, yeah, but they're still like,

Paul J Daly  10:46  
but the boomers like walking into the dealership, the boomers are, largely, are, what's the youngest Boomer? Nathan, what's the youngest Boomer? Come on. I thought, I thought he would is that the youngest Boomer? Am I that close to being a baby boom? No? Am I no, because I'm maybe 55 I think it's like 60

Nathan Southwick  11:06  
Well, I tried to go fast with AI, and I accidentally wasn't GP T Oh, three mini so it took a little longer.

Paul J Daly  11:15  
Such a 2025, thing. You put that and you just sent it, if you just said that 12 months into the past, everybody's like, everybody's like, this guy, like, but he used oh three mini so it was slower, right? All of it, all of it doesn't make sense, okay? So boomers

Nathan Southwick  11:37  
are between 40 born in 1946 and 1964 so that means someone born in 1964 would be around 61 years Ah,

Paul J Daly  11:44  
yes. Okay, so most of them are retired, and they would love nothing to do. Then walk into the store, drink your coffee and talk to everyone that walks by. Why would they buy on Amazon? They can't do any of that.

Kyle Mountsier  11:57  
None of that. Yeah. I agree. Yeah, my dad's definitely not shopping for a car on Amazon. Now, my mom, she will wear out some Amazon purchases. I mean, she gets boxes every day.

Paul J Daly  12:10  
Hence the statistics. That's unbelievable. There you go. Okay, I don't know, have we done enough damage today? I

Kyle Mountsier  12:17  
think we've, we've hit him in the face today. Okay, look, we

Paul J Daly  12:22  
hope you had help you laugh a little bit while you realize that things are changing, you can change with it. The coolest part is this ASOTU community. Are all the people changing the fastest, and the ones you want to be friends with, and they're all going to be at ASOTU CON.

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