Automatic Labs quickly gained attention about seven years ago as it launched a smart connected car device that worked with iPhone. Amid the COVID-19 pandemic, the SiriusXM-owned company has announced today the surprise news that it’s closing its business and all services at the end of May.
Automatic Labs started alerted customers to the disappointing news in a blog post today:
Just like many other companies in the United States, the COVID-19 pandemic has adversely impacted our business. With fewer consumers purchasing and leasing vehicles and drivers on the road, we unfortunately do not see a path forward for our business. These are unprecedented times, and with so much uncertainty ahead, we have made the difficult decision to discontinue the Automatic connected car product, service and platform. We will be shutting down all operations at 11:59 pm, PT, on May 28, 2020 and, as a result, your service will end on that time.
Interestingly enough, Automatic Labs was purchased by SiriusXM back in 2017 for more than $100 million. So it seems like the company hasn’t been doing so hot over the last three years. Notably, auto insurance companies have been rolling out similar devices with financial incentives for customers and many cars are including features that Automatic touted from the factory.
We reviewed the original Automatic smart car device back in 2013 and the service only expanded in the years since. Features of the device/service included accurately tracking mileage and trips, decoding engine light warnings, vehicle tracking, and automatic help in case of crashes/emergencies.
There is the possibility for some Automatic customers to get rebates for their hardware purchases:
You may be eligible for a rebate for your Automatic purchase due to the discontinuation of the service. Minimum requirements for all eligible customers include:
- Purchase of Automatic Pro or Lite that has been activated prior to April 30, 2020 or,
- Purchase of Automatic Connected Car Assistant (CCA) whether activated or not and,
- The ability to verify your Automatic account information including your adapter PIN and email address associated with your account and,
- Completion of the Rebate Request Form by June 15, 2020.
- Rebates do not apply to sales tax or shipping fees.
Learn more about the fine details on Automatic’s website.
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