Streaming Wheels: How Automakers Are Turning Cars Into Apps

GM, Mercedes, and Rivian shift gears with in-car software upgrades, driving new revenue and redefining the ride.

12 Apr 2025

The auto industry's next growth engine isn't under the hood, it's in the code. As cars evolve into connected digital ecosystems, top automakers are revving up their efforts to turn vehicles into software-powered platforms that continuously deliver new features, content, and revenue.

General Motors recently launched a sweeping update across several models that enables video streaming and casual gaming. This expands its vision of cars as entertainment hubs on wheels. It also marks a major step toward a recurring revenue model built on subscriptions and digital engagement, where the real value lies not just in the vehicle but in what it becomes over time.

Mercedes-Benz is steering in the same direction with MB.OS, its upcoming operating system platform. Designed for frequent over-the-air updates, it promises tailored experiences and regular enhancements that reflect each driver's habits and preferences. The company has boldly declared that its future lies in software profits, not just vehicle sales. This is an ambitious pivot from its legacy of luxury craftsmanship.

Electric vehicle startup Rivian is also accelerating in this space with its regular over-the-air feature drops. These updates offer everything from advanced drive modes to smoother interfaces, reinforcing brand loyalty through constant improvement. While currently free, analysts expect Rivian to introduce monetized upgrades once its user base is fully onboard.

"Consumers are no longer just buying a car. They're buying into an evolving experience," said Marla Keene, a mobility tech analyst. "Post-sale software upgrades are fast becoming a competitive differentiator."

This software-first shift reflects a broader trend reshaping the industry. Automakers are chasing higher margins, deeper engagement, and real-time insights, all delivered through the digital dashboard. While questions about data privacy and cybersecurity remain, leading players insist that transparency and customer control will define their approach.

As vehicles become smarter, more personalized, and perpetually updatable, the automotive experience is being redefined. The winners in this race will not be those with the loudest engines but those with the smartest updates.