Connect+.... I call bullshit

[SANZC02]

I’m in a similar boat - having put in a deposit in and waiting 2+ years to get the vehicle, I have been very happy with it. That said, some of the comments from others are hard to square and leave me to wonder if Rivian reps aren’t replying vs actual consumers. Upon demo and delivery, my vehicle was installed with satellite map views. It is the first screen shown and was featured by the sales rep on both the demo and delivery. I don’t need or want the “new” Connect+ services and simply wanted to keep what the vehicle was originally installed with. I certainly wasn’t sold the vehicle based on a promo period navigation functionality. The notion that “you can afford it” or “other people do it” rings hollow to me. We are talking about $1.5k+ for a use over 10-years. Customer service refers to a buried clause in their purchase agreement that they will notify us of charges in the future for in vehicle functionality. However, what is different is to push an en masse downgrade across their entire fleet unless I pay $150 per year for something the vehicle was sold with and based on. They already use my WiFi to push updates, give them location information, sell/provide that info to a host of parties and use the functionality for their own purposes based on a bulk enterprise data arrangement. It seems a bald effort to scrape $15-$30mm into their currently delivered fleet annually and if not downgrade their functionality. Again, I have no issue with a charge for new services of value, only the point that they actually pushed a downgrade to satellite maps. Certainly doesn’t inspire loyalty and a bit like Apple saying “just kidding” if you want to use the functionality your phone came with, you have have to pay for it annually now. Maybe, maybe it is legal, but certainly doesn’t inspire loyalty vs “buyer beware”

I can assure you I am not employed in any manner by Rivian although I do own some Rivian stock.

It has been well know since the IPO that there was going to be a recurring revenue stream for the data plans. The only thing we did not know for sure until about 1.5 years ago what the plan details and cost was going to be.

Rivian has provided a way to use some of the internet apps without the subscription by allowing you to join a mobile hotspot while driving. They are however keeping some of the apps like satellite images that they have recurring cost and other items to offset some development costs as part of the subscription tier.

Seems perfectly reasonable to me.

I’m sure they could have bumped the vehicle price up 1500 and included 10 years of service but then they are unable to adjust the pricing should costs dramatically increase.

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[COdogman]

Apparently paying attention and having common sense = Being a Rivian employee these days ?

 

[DA R1S]

As a shareholder with the stock performance below, I can certainly understand the perspective of adding perhaps $30mm of annual cash flow (and growing - doubt the price stays fixed at $150) to shareholder bottom-line. At the average trading multiple of 29.94x for the S&P 500 - this would add perhaps $900mm of direct share value benefit for shareholders - at the direct expense of owner/consumers whose purchases will determine the future success of the Company. Respectfully, just because a company “can” do something, doesn’t mean owners won’t react to it or agree to normalize the behavior. Not disimilar to the owner upheaval on the attempted launch price increase that they stepped back from fearing mass defections from deposit holders. That also led to litigation from disgruntled shareholders who wanted them to do it. Seems to be a case of competing priorities that this well run start-up is struggling to juggle. Shareholders win for now, but can’t expect owners to be happy about it or expect it not to have a future impact on willingness to make a huge dollar purchase in the future. Various state attorney general’s and the FTC are also becoming wise to this behavior and for example suing over automatic data collection and sale. Why should my or your vehicle and personal information be Company/shareholder information to be monetized vs private? Again, realize there will be different perspectives, but it is also ok not to be pleased with and speak with one’s pocketbook. Again, really like the product, just giving an honest reaction as a consumer.

 

[kozak79]

I don't get the surprise—most major brands charge fees for connected services. Volvo charged me $200/year to start the car remotely and send an address to GPS. Connect+ is cheaper and does more.

 

[UnsungZero_OldTimeAdMan]

Another one?? Totaled. Move on. Good luck with next car.

 

[Donald Stanfield]

I’m in a similar boat - having put in a deposit in and waiting 2+ years to get the vehicle, I have been very happy with it. That said, some of the comments from others are hard to square and leave me to wonder if Rivian reps aren’t replying vs actual consumers. Upon demo and delivery, my vehicle was installed with satellite map views. It is the first screen shown and was featured by the sales rep on both the demo and delivery. I don’t need or want the “new” Connect+ services and simply wanted to keep what the vehicle was originally installed with. I certainly wasn’t sold the vehicle based on a promo period navigation functionality. The notion that “you can afford it” or “other people do it” rings hollow to me. We are talking about $1.5k+ for a use over 10-years. Customer service refers to a buried clause in their purchase agreement that they will notify us of charges in the future for in vehicle functionality. However, what is different is to push an en masse downgrade across their entire fleet unless I pay $150 per year for something the vehicle was sold with and based on. They already use my WiFi to push updates, give them location information, sell/provide that info to a host of parties and use the functionality for their own purposes based on a bulk enterprise data arrangement. It seems a bald effort to scrape $15-$30mm into their currently delivered fleet annually and if not downgrade their functionality. Again, I have no issue with a charge for new services of value, only the point that they actually pushed a downgrade to satellite maps. Certainly doesn’t inspire loyalty and a bit like Apple saying “just kidding” if you want to use the functionality your phone came with, you have have to pay for it annually now. Maybe, maybe it is legal, but certainly doesn’t inspire loyalty vs “buyer beware”

I am not a Rivian employee and the amount I have invested in the stock is trivial to my financial picture overall. I still knew for over 2 years that Rivian was planning on a subscription model and I have known since I was in middle school at least that stuff costs money and should I want a service I should expect to pay for it.

We aren't talking about hardware the truck has, like the BMW heated seat fiasco. We are talking about internet bandwidth Rivian pays ongoing fees for. The only way you'd expect to get this for free in perpetuity is if it was promised to you, or you're entitled. Since Rivian never promised unlimited data forever free, that only leaves one option.

 

[Jeffh32]

This is called capitalism ??. So soooory it's $20 in Canada. Taste that freedom connect + haters

 

[RalphB]

I just dont understand the problem. In my experience Audi and Lexus charge significantly more for a less capable offering - and I assume that is so for BMW and Mercedes too. I thought that the Rivian price was a bargain and I don't even use the hotspot! And to my knowledge no other manufacturer allows use of one's cell phone hotspot.

 

[Ghens]

Rivian should just raise the price of the truck by $1500 and say they are giving connect+ for 10 years, that way it stops all these threads. I personally like the choice of deciding if I want to pay for it or not but all these threads are getting a bit silly.

You don’t have to read them

 

[E_Monkey]

I understand that providing data service to cars costs money, and I think it's appropriate to charge a nominal fee for that. Some of the Connect+ features should cost extra if Rivian incurs additional costs to provide them. I think Rivian made the right move in enabling some data features to continue if the user chooses to use a mobile data connection.

However...

Satellite maps uses existing data that is provided by Google. Rivian doesn't have to create this content, they merely forward it on. Not allowing satellite image data to come through is akin to not allowing music streaming through Alexa, which works just fine with a mobile hotspot.

I call bullshit.

connect+ is essentially a data plan for $15 a month. Which is a fair rate. The other stuff are perks but somewhat meh. Without data plan you couldn’t get the satellite imagery as it changes over time. Could be coding problematic if they tried to let folks push updates via BT tether. Tesla used to have free data to get buyers into the Model S early on for life.

but if you want Rivian to survive it’s about helping them not incur costs via. At least breakage.

 

[tate16t]

While tethered to my phone, I lost connection and the recovery was not so good. I toggled the Rivian WiFi, nothing. I had toggle my phones hotspot to get things going.

I went ahead and signed up for Connect+ monthly last night about 11pm. If I don’t like it I’ll cancel.

At 1:30AM I was prompted to upgrade to .39.

 

[SwampNut]

Four pages of whining drama.

I haven’t signed up because the only thing I want is Apple Atmos, and it’s totally broken in my truck. None of the other features give me any value.

 

[boosted20v]

Rivian isn't the only automaker where satelite map view is behind a pay wall. Audi I believe was the first and when our trial in my wifes Q5 ended we no longer had it. Hell the GMC Sierra I just traded in for my Rivian requires you to purchase a subscription to use Google Nav period! You're literally staring at a blank map if you don't. I'll gladly pay the $150 for connect + vs the $35 a month for GM.

 

[TTedP]

they merely forward it on.

Data costs money and embedded nav isn’t the same as sound streaming over bluetooth.

 

[MannyMan]

Wait till you have to pay $10.99/mo to be able to use the gear tunnel... These will be interesting times lol

Having a guy dive 100s of times a day just to take pictures of every ft² with his iPhone so you can have birds-eye view of your area cost a lot of money!!!! Pay up!

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