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Free services are popping up everywhere. The trick is, they want the data.
We are seeing more and more “We will clean your home for free” ads. The trick is these home cleaners show up with cameras and sensors so that they can collect data to hopefully train robots and humanoids that will one day do this work.
I recently had a nail patched for a tire on my car. I was surprised that this service was free and it was also free if I wanted to the tires rotated. I imagine the tire company isn’t that sophisticated and they do this service for free because they are trying to build a relationship with me so that I eventually have my tires replaced by them and think of them for any tire-related needs in the future.
The bigger potential upside for them is the data they collect. They have more information about cars, how long tires last in general per car, how many cars per week have nails or screws in them, and if they have multiple locations, how this differs from city to city. If they were really smart, I bet there is millions to be made by Discount Tire, licensing their data.
Whether its companies like Micro1 buying the data or even Google since they recently bought the data from Frontier Airlines for $10m!
Nothing in life is really ever free, but at the end of the day, do we really care as consumers if the service is free, but the data is the value they capture……I guess it depends.
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