Spotify is no longer making Car Thing, a dashboard accessory that makes using the streaming service easier in your vehicle. This announcement was made during yesterday’s earnings release.
Stated in the release, Spotify’s gross margin was negatively impacted by the decision to stop manufacturing the Car Thing. While the company hasn’t found success in the hardware space, it’s doing well in software. Its userbase remains high with 188 million paid subscribers, reported by Tech Crunch.
A Spotify spokesperson told Tech Crunch:
The goal of Spotify’s Car Thing exploration was to better understand in-car listening, and bring audio to a wider range of users and vehicles. Based on several factors, including product demand and supply chain issues, we have decided to stop further production of Car Thing units. Existing devices will perform as intended. This initiative has unlocked helpful learnings, and we remain focused on the car as an important place for audio.
9to5Mac has previously reviewed the Spotify Car Thing and found it to be a decent device for under $100. Spotify’s Car Thing was first available as invite-only in April of last year but has since expanded access to everyone. It’s still available online for now at a discounted price of $49.99.
FTC: We use income earning auto affiliate links. More.