Kinetic: Reimagining the automotive aftermarket industry
I am very happy to share that my co-founder Sander Marques and I have started a new company called Kinetic. Kinetic is ushering in the next generation of mobility with a network of highly automated service centers. Our high-precision robots, powered by machine learning and software, are going to become a one-stop center for rapid, accurate, and predictable maintenance and servicing of Electric Vehicles (EVs) today and Autonomous Vehicles (AVs) tomorrow. Kinetic service hubs will minimize breakdowns of next-gen vehicles and keep them operating safely and efficiently with deterministic service downtimes, while simultaneously providing meaningful employment to a new wave of Kinetic certified auto-technicians around the world.
EVs and AVs are ramping up quickly
Over the next decade, over a billion electric and highly automated vehicles will hit the roads. The global market adoption rate of EVs is expected to rise from 4% today to 70% by 2040, with a majority of that penetration happening in the US, China and Europe. Automotive electrification is further catalyzed by this administration’s desire to see zero-emission cars occupying public roads. President Biden has put the build-out of the EV industry along with Lithium-ion battery supply chains at the center of his federal policy. He has recently signed an executive order declaring that up to half of all vehicles sold by the end of the decade must be zero-emission. The automotive industry has answered that call with bold bets on EV manufacturing, and announced sunset dates for Internal Combustion (ICE) vehicle production.
“President Biden has put the build-out of the EV industry along with Lithium-ion battery supply chains at the center of his federal policy.”
Aftermarket has been an afterthought
While this secular trend towards electrification is already playing out at a rapid clip, the infrastructure for aftermarket maintenance and service has largely been an afterthought. Automotive aftermarket is a trillion dollar industry that has not seen any major innovations in decades. Established companies in the sector such as Jiffy Lube, Midas and Pep Boys will become obsolete in this new world as EVs do not need oil changes, smog tests, accessory belt replacements and a number of other services designed for ICE vehicles. This is not mere speculation — for instance, most of these centers are incapable of servicing the advanced sensors in vehicles that are already deployed today.
EV rollout <> labor shortage
This lack of preparedness for EV service and maintenance is further exacerbated by massive labor shortages in the sector. In a TechForce Foundation report from 2020, it was noted that the industry would be short by approximately 642,000 technicians between now and 2024. The issues leading to this include:
- Retiring baby-boomer workforce at the rate of 9% per year,
- Massive churn of new certified technicians at over 30% per year,
- Extremely low participation by women, currently making up a mere 1.5% of all technicians in the US, and
- Low desire for up-skilling amongst existing technicians.
Just a few weeks ago, Honda announced that over 2000 of their staff in Japan, or 5% of the workforce, applied for early retirement after their EV shift was announced. On tracing this dotted line, it becomes clear that the aftermarket industry is not going to be able to transition fast enough for servicing the next generation of EVs and AVs.
Enter Kinetic
Kinetic is revolutionizing the aftermarket sector with our highly automated hubs that will be capable of performing EV/AV service and maintenance tasks with precision, predictability and attention to detail. Our centers are equipped with accurate, industrial grade sensors and our software is capable of precise scene and vehicle perception. Further, our robots, coupled with our purpose-built AI, are capable of adapting to the different makes and models of vehicles and servicing them with high precision and repeatability as described in OEM service manuals. This “software defined” approach to vehicle servicing endows Kinetic with the ability to maintain EVs on the market today, while staying flexible to accommodate the needs of future EVs and AVs.
However, none of this is going to be possible without Kinetic technicians to supervise and manage our robots. Our technicians are going to enjoy our work environment, they will be treated with respect and equality, and will be compensated well for their work. Consider Apple’s Genius Bar — these are full-stack technology and software driven service centers where a novice can become a certified Genius within a matter of weeks. It is not hard to see why the Genius is such a sought after career; the work environment is lively and respectful, the customer service playbook is well codified, and the average pay is higher than that of an automotive technician who underwent two or more years of training and certification. We have a similar goal at Kinetic — to bring technology and automation driven standardization to the automotive service industry with a certification process that has a significantly lower barrier to entry, and can attract and retain a diverse talent pool looking to break into the EV/AV sector with meaningful employment.
We envision a world where vehicle servicing downtime is significantly minimized while simultaneously building a robust business that can certify and onboard technicians much faster than the status quo. We have filled our tanks with capital from institutional and angel investors with deep networks and expertise. We are growing rapidly and want to hear from you! Please reach out to me if you want to learn more about Kinetic and stay tuned for more updates!
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