Dash Navigation is getting out of the hardware business and cutting 55 jobs, or 65% of its workers. The startup, which is backed by both Sequoia and Kleiner Perkins, makes the Dash Express car GPS device. This is a network-connected GPS that pools the location and speeds of all nearby Dash owners to give them back real-time traffic reports. It also supports geoRSS feeds, and other GPS apps.
Despite its novel features (I am a big fan of the device) and the $71 million the company has raised, going into the hardware is business looks like it was a wrong turn. Dash will now pursue a strategy of partnering with other device manufacturers, including cell phone-makers, to add its software to their devices.
Dash never made a push into retail stores. The device is only sold through Amazon and other online retailers. (At Amazon, it is currently ranked No. 16 in the “Vehicle GPS” category and No. 940 in “Electronics”). Existing customers will continue to be supported and receive software upgrades as they become available.
Dash already has a strong API program for developers, and licensing is a good idea. I’d love to see a Dash app on the iPhone, Android, and Blackberry phones.
But it seems risky to shift gears at this point from a consumer-facing startup to a software licensing company dependent solely upon other manufacturers. The strongest GPS navigation manufacturers, such as Garmin and TomTom, are unlikely to license Dash’s software for their own devices. Part of the appeal of owning a Dash is being connected to other Dash owners and sharing driving data with each other. By making its own device, Dash created a focal point for that community and could completely control the user experience. All of that will now go away.
I think it’s definitely a great product, the thoughts behind it is very useful.
I personally won’t pay that much for GPS services.
Yeah…that is pretty expensive
I wonder what this will mean for Dash users like me. I recently signed up for 2 years of service and I would be seriously pissed if I don’t get it. My Dash is the best device I have ever owned. I don’t use it as often as I would like just because I rarely go places I don’t know when I am in town, but when I am traveling, it is a life saver.
Your service will continue, and in fact, a software update is planned for later this year.
If you want something new to do with your unit, why not get into Geocaching then? Sort of like Treasure Hunting.
Can Dash make it onto the iPhone with Apple’s prohibition against displaying live traffic directions?
I sooo have the solution to Dash’s problem in my mind. For the right dollar amount I think I would share my idea that woud singlehandedly lead them away from the brink of the dust bin and into every single vehicle in America, even causing people to throw their fully functional and useful recently purchased GPS devices away for this unit. Hyperbole? Maybe! I don’t think so.
I wouldn’t say that their hardware strategy was bad, the execution was bad. With such limited distribution, what could they really expect?
We are looking forward to integrate UMapper into Dash. We hope this does not affect integrators like us in any way.
This is a very cool GPS device. But, as always timing is everything. These guys were two years to late to the market.
Buying a device such as Dash becomes secondary now that smartphones can do all this and much more.
Another reason I never invest in hardware companies: $71M yikes. Give me $2M and I’ll deliver 5 kick ass applications across numerous wireless platforms.
I agree–timing is everything, especially with GPS. Garmin still controls the GPS market with a smaller design (although not all the data features) and smart phones add everything else. I wonder how much inventory Amazon went through last week when they had this as their Gold Box Deal at $199 and free shipping (was retailing at $299). With everyone dropping their prices they will have a hard time finding customers willing to pay the service fee + the price of the unit with so many other options out there.
What about deals with GM, Ford, Chrysler, Toyota, Honda for pre-installation just like XM-Sirius?
Or deals with Hertz, Avis, Dollar, etc.?
The distribution problem is certainly similar to satellite radio, TiVO, and any other 3rd party device relying on a 1st party’s product and/ or service.
sounds like dash is DOA. 2/3 of employees gone and $71mm into it. equity firm will pick it up cheap and sell off the parts. anyone with dash units will be lucky to have service by next year in my opinion. Like the devices but with tomtom and garmin out there, it’s tough.
What about deals with GM, Ford, Chrysler, Toyota, Honda for pre-installation just like XM-Sirius?
Or deals with Hertz, Avis, Dollar, etc.?
any idea how many dash devices are out there?
Ok, for you first two commenters, do you own the product and attempt to use it on a daily basis? If so, you’d agree it has way more issues than are acceptable in a device that attempts to do what it does. It does not route around traffic, does not plan routes taking traffic into account, and does not even plot map search results as pinpoints on a map. If GPS were unlocked on my blackberry it’d be nearly as useful as a dash. I am hoping that the software update does fix the issues but have let my connected services subscription lapse due to dissatisfaction. I will be highly investigating a replacement if it does not fulfill my needs this holiday season.
I would so love to see an in-Dash unit (Dual DIN) that could replace the crappy radio/CD player in my car with a connected/traffic aware GPS and audio system.
As a stand-alone device the Dash has some great technology but is of no interest to me… but make the software available to (say) intergrate with the Centerfuse CarPC front-end or partner with {someone} to build a Windows CE powered device and I’d put down a few hundred bucks and sign up for a data plan…
Just got an email from a friend that works there…. Crazy.
I think we will be seeing much more of this in the very near future. Hopefully it will not get too much worse but my gut says it just might.
Shoot! I just got one of these and was loving it. I think it’s the best GPS out there! So good w/ traffic and routing. Darn, was gonna buy one for my Mom for Christmas : ((
Making their own hardware was a poor decision….that business model was doomed from the beginning. Software (only) is the way to go for them…hopefully they can make it back from the brink b/c it’s a great product.
Dash should refocus the company on VOIP calls
Dash like features have been available for years in Japan via Honda’s Internavi and follow-ons from Nissan’s CarWings, and Toyota’s GBook.
Dash were idiots to make their own hardware. They should have licensed the service to auto makers and other navigation makers from the start.
Don’t know how to point out a deadpool candidate, but it looks like Tacit Software should be added to the list. See this: http://www.orac...press/017678_EN