Spotify’s Car Thing Discontinued
Less than three years after entering the US market, Spotify’s Car Thing is no more.
The Car Thing, Spotify’s short-lived expansion into car audio, officially shut down on Tuesday (December 9), leaving its (admittedly small) user base with what is essentially junk.
Spotify advises that Car Thing users dispose of the device “in accordance with local e-waste regulations”, which is small consolation for those who spent US$89.99 on the device, designed to make Spotify playable in cars without existing connections like CarPlay or Android Auto.
Market Challenges and User Backlash
However, it turned out that the market for the Car Thing did not meet Spotify’s expectations. Just six months after its introduction in the US, Spotify announced it would halt sales and subsequently indicated that the Car Thing would cease operations entirely.
This decision upset many users who invested in the device, leading some to join a class-action lawsuit initiated last spring seeking compensation.
The backlash prompted Spotify to announce that it would offer refunds to customers who contact customer service with proof of purchase. Spotify has informed Car Thing owners to reach out to customer service by January 14, 2025, to “discuss refund options.”
Efforts to Revive Car Thing and Future Strategy
Some Car Thing users have attempted to keep the device functional by developing their own firmware. However, these efforts became more difficult after Spotify altered its API, limiting third-party developers’ access to Spotify data.
The Car Thing went on sale in February 2022 as a physical music player designed to be mounted on dashboards and connect to users’ smartphones via the Spotify app. It featured a four-inch screen, voice commands, and pre-installed shortcut buttons, aimed at providing Premium subscribers with a smoother, more personalized in-car listening experience.
Despite its innovative design, Spotify struggled to compete with established technologies for streaming music in vehicles. After slashing the device’s price nearly in half, the company quietly discontinued it in August 2022.
Former CFO Paul Vogel attributed the decision to discontinue Car Thing to several factors, including pricing challenges, inflation, and supply chain issues.
Spotify’s Q2 2022 earnings report revealed a one-time loss of $31 million attributable to the device.
The shutdown of Car Thing occurs amid Spotify’s heightened focus on enhancing efficiency in recent years.
In an effort to maintain profitability, CEO Daniel Ek is implementing a strategy that balances user growth with cost control. This approach involves a series of layoffs and the discontinuation of some of Spotify’s more experimental products, such as live radio.
These efforts seem to be yielding results, with Spotify on track for its first year of profitability by 2024.
Spotify’s Car Thing officially non-operational, less than three years after it rolled out in the US
