Spotify Retires Car Thing Device and Focuses on New User Features – Spotify Technology (NYSE:SPOT)

Spotify Technology SA (NYSE:SPOT) has discontinued its debut hardware product that allowed users to control Spotify through car speakers using voice recognition and preset buttons when connected to a phone. The company’s shares are rising on Friday.

Spotify discontinued less than a year after launch, and now, two years later, the device will stop working on December 9.

Spotify does not offer refunds or subscription credits. Instead, the company advises users to dispose of Car Thing responsibly.

Spotify said the discontinuation of Car Thing is part of a streamlining of its product offerings and a focus on new features and improvements for a better overall user experience. They confirmed there are no plans for a replacement, The Verge reports.

The $90 device, initially launched by invitation only in April 2021 and later made available to the public, was discontinued five months after going on general sale.

Spotify made its Car Thing service publicly available in February 2022, aimed at users without built-in infotainment systems in their vehicles, TechCrunch reports.

Despite low product demand and supply chain issues that led to the discontinuation of operations, Car Thing found a niche community.

In April, Spotify reported first-quarter fiscal 2024 revenue of $3.95 billion, up 20% year-over-year, beating analyst consensus estimates of $3.85 billion. EPS of $1.05 exceeded analyst consensus of $0.70.

Analysts noted accelerated revenue growth in 2024, supported by Premium subscribers, due to the benefits of moving to access-based streaming models.

They praised Spotify’s ability to drive revenue growth and improve profitability through pricing power.

Spotify shares are up more than 107% in the last 12 months. Investors can gain exposure to stocks through ProShares Demand ETF (NYSE:OND) i WBI BullBear Quality 3000 ETF (NYSE:WBIL).

SPOT price action: Spotify shares were up 2.38% at $307.66 at last check on Friday.

Photo courtesy of Spotify