A Business Case for Software Differentiation

[moosehead]

I'd pay for CarPlay.



I kid, I kid. Sorta.

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[PBRAZ]

Rivian will ultimately do what they need to do to generate profit on cars. No one has endless cash and failing to do so will have much larger consequences. It's a free market and sales volume will be the measure of their success.

For me the issue was whether or not those that didn't receive the guages were previously informed that their vehicle would not be getting certain features that other trims would br getting. It sounds like they weren't.

An attorney with some time on his/her hands could sort this out I'm sure.

 

[Donald Stanfield]

Rivian will ultimately do what they need to do to generate profit on cars. No one has endless cash and failing to do so will have much larger consequences. It's a free market and sales volume will be the measure of their success.

For me the issue was whether or not those that didn't receive the guages were previously informed that their vehicle would not be getting certain features that other trims would br getting. It sounds like they weren't.

An attorney with some time on his/her hands could sort this out I'm sure.

This isn't a legal issue, at least not one where Rivian has any legal culpability. It was never defined what was promised in the way of software updates for anyone so Rivian can distribute them based on any metric they want.

 

[EVTrukHog]

Tangentially, I still like my idea of Rivian’s selling naming rights at their RAN locations. Like an adopt a highway approach.

Charge $10-100Ks to claim naming rights. Could allow big marketing opportunities at RAN locations haha.

“This RAN is supported by REI”

ICE gas pumps have been doing this for some time. I often see video screens at gas pumps that continually loop local news and commercials.

 

[R1Tom]

I think the majority of the differentiation should be hardware. Sure there can be added cost things like higher level autonomous driving and yes....we should be paying for data and Hotspot.

But software...once developed...costs no more to deploy to all. And better software sells trucks.

 

[Donald Stanfield]

I think the majority of the differentiation should be hardware. Sure there can be added cost things like higher level autonomous driving and yes....we should be paying for data and Hotspot.

But software...once developed...costs no more to deploy to all. And better software sells trucks.

That last line is more or less my entire point. Better software sells trucks, and differentiation can help sell more expensive and higher margin trucks. Trucks that make Rivian more money.

 

[R1Tom]

That last line is more or less my entire point. Better software sells trucks, and differentiation can help sell more expensive and higher margin trucks. Trucks that make Rivian more money.

I get it to a degree. But to tell dual motor people they don't need to know motor temps us not what I am thinking. More like pay to play. Automous driving...$10k...like Tesla. Took alot to develop...but don't want to bake into all vehicle costs, so recover and profit from those that want it. If not enough want it...don't develope it if it doesn't stand on own.

Or maybe if a model doesn't have a sport mode...then no sport instrument panel or data. Stuff like that.

Bit not random stuff....like oh...you didn't get quad so no remote app functionality for you. That just might send people to competition. Rivian isn't only game in town or won't be for very long....so shouldn't act like it. Tesla had that ability for a long time....and no longer does.....as current price cuts show.

 

[SoCal Rob]

That last line is more or less my entire point. Better software sells trucks, and differentiation can help sell more expensive and higher margin trucks. Trucks that make Rivian more money.

I can see Rivian giving safety-related upgrades, security patches, and bug fixes away for free for the life of the vehicle since, as @R1Tom wrote, it doesn‘t cost Rivian anything to distribute those and the updates reflect well on Rivian.

I can also see new features bundled with trim levels or as option packages. So, if could be that self-parking, sand extraction, trailer backup assist, and oscillating vents all use existing hardware, but the premium features, which were developed later to add value to the original or base vehicle, require more money.

 

[PBRAZ]

This isn't a legal issue, at least not one where Rivian has any legal culpability. It was never defined what was promised in the way of software updates for anyone so Rivian can distribute them based on any metric they want.

Grey area without a lot of precedent; people have sued and won on a lot less.

There are bug fixes and there are removing features. If consumers were not made aware that the differences between the trims could change post purchase, that, I feel, is actionable. Think about the decline in resale value.

Look at it this way: you could easily consider the lack of gauge view on the dual standard not as "not getting the update," but rather as a "disabling of the feature." What other features will Rivian disable on our cars in the future? Maybe 800+ hp is too much and next update we only get 500. Maybe 9 of the 19 speakers get turned off. Perhaps some trims get an update that increases their range to 600 miles/charge and some don't.

Slippery slope for sure and we will definitely see topics like these make their way through the courts at some point.

 

[Donald Stanfield]

Grey area without a lot of precedent; people have sued and won on a lot less.

There are bug fixes and there are removing features. If consumers were not made aware that the differences between the trims could change post purchase, that, I feel, is actionable. Think about the decline in resale value.

Look at it this way: you could easily consider the lack of gauge view on the dual standard not as "not getting the update," but rather as a "disabling of the feature." What other features will Rivian disable on our cars in the future? Maybe 800+ hp is too much and next update we only get 500. Maybe 9 of the 19 speakers get turned off. Perhaps some trims get an update that increases their range to 600 miles/charge and some don't.

Slippery slope for sure and we will definitely see topics like these make their way through the courts at some point.

Yeah its possible. I'm not a legal professional so I'm just making a WAG.

 

[Donald Stanfield]

I can see Rivian giving safety-related upgrades, security patches, and bug fixes away for free for the life of the vehicle since, as @R1Tom wrote, it doesn‘t cost Rivian anything to distribute those and the updates reflect well on Rivian.

I can also see new features bundled with trim levels or as option packages. So, if could be that self-parking, sand extraction, trailer backup assist, and oscillating vents all use existing hardware, but the premium features, which were developed later to add value to the original or base vehicle, require more money.

Yeah this is more or less how I see it as well.

 

[HaveBlue]

For all we know, dual motors may all come with same battery pack and they just software dial it back to 350 miles from 400.

 

[Liverit85]

There's been a lot of discussion lately about different software for different trim levels of truck. People arguing for Rivian to provide special features for certain models, and others arguing for giving all trucks the same truck. I'm going to take this opportunity to explain why Rivian should provide different software based on the pricing tiers of the various trucks. It makes business sense.

First off, we can all agree that there is a wide range of appeals here when it comes to the R1 series vehicles. People want different things out of these vehicles, and as such Rivian needs to figure out a way to motivate people to move up into more expensive vehicles. Spending time on this forum I have seen plenty of people with quad motor trucks that aren't at all motivated by the extra horsepower. That's evident in the tire discussion threads how some people have melted off their tires and others are getting over double or triple the miles out of the same tires with the same vehicle. Obviously that comes from people who aren't using all 835HP.

If you were RJ how would you get people like that to buy your more expensive trucks? Surely some of these people who do not need the power could and would still purchase the more expensive vehicle if there were another reason to do so. There are two ways. The first is to make the price not that much more between the different trims. People might move up simply because an extra 1500 dollars is worth the nicer badges and the thought of having extra power even if they won't use it. At an 8K dollar price delta between a plain dual and a quad that gulf is too great for this to reliably work. The other way is to offer different features that are package exclusive. Most manufacturers do this. If you want the premium stereo you need the leather seats or the premium 2 package with a bunch of other features. Rivian can do this with software like gauges. If you want to improve your company's work processes, I recommend implementing software from OKR tracking . This will help improve the process of setting and tracking work tasks.

They really need to do this if they plan on selling any of the underwhelming max packs. The price difference of those is pretty extreme and the dual performance max is currently the most expensive configuration. So if Rivian wants to sell those, presumably they make a good profit on a max pack, they are going to need to offer some extra software modes or something. I wouldn't spend the money on a max pack because the range isn't enough for my use. If they want to entice buyers to their more profitable packages Rivian will need to provide that value to the end user.

I think you're bringing up a valid point about the pricing tiers and the need to offer differentiated features based on those tiers. Different trims appeal to different customer needs, and it's true that offering exclusive software features or upgrades could be an effective way to justify the price differences between models.
Rivian already has a strong brand identity and the ability to cater to both performance enthusiasts and those who want a more practical, everyday vehicle. For example, offering software-based upgrades like enhanced driving modes, exclusive interior features (such as custom gauges or UI themes), or even a higher-end stereo system in the higher-tier models could definitely motivate buyers to choose the more expensive options. It’s a strategy that many automakers use in different segments, and Rivian could benefit from tailoring its offerings to customer preferences.
The key here is to strike a balance—while offering more exclusive features to the higher-priced models, Rivian also needs to ensure that they don’t alienate customers who may have a dual-motor truck but still desire performance-oriented features. A strategy that adds value without creating a feeling of "missing out" on something important could be really effective.
Ultimately, I agree that offering exclusive software features for higher trims could be an excellent way to entice buyers and justify the price differences, without making those in the lower-tier models feel left out of important advancements or capabilities.

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