Tencent is looking forward to diversifying its business as its core moneymaking business has started to stall. According to a report by Reuters the company has posted job positions on Linkedin for their operations in Silicon Valley. The positions were related to autonomous driving and machine learning. This reflects upon the company’s aim towards acquiring new
Tencent is famous for two of its applications namely, Wechat and PUBG. WeChat is the largest social media platform in China where other global players such as Facebook and Twitter are banner. This makes Tencent the only major players in the market and it has grabbed the opportunity with both the hands to shoot itself to the top. In addition to the social media platform, the company has also produced one of the most addictive games in the history of the mobile internet – Player Unknown’s Battle Ground or PUBG.
Self-driving cars are getting popular in the developed economies of the world. The US is the largest market for self-driving cars. Tesla has been pioneering this technology and is moving ahead with the vision to create something new and change the society. Tencent has invested around $1.78 billion in Tesla to understand the market well and the nuances of the electric vehicle manufacturing firm the very best in the world.
Chinese giants commonly known as the BAT or Baidu, Alibaba and Tencent are all involved in the self-driving car industry. Tencent has entered the automobile industry last year with their announcement of the initiative to team up with Guangzhou Automobile Group to develop Internet-connected “smart cars”.
China is the largest market for automobiles in the world currently and the Chinese government’s focus on electronic vehicles have shown a ray of hope for Tencent. Electric vehicle technology will be merged with the driverless technology in the near future and it is going to be the new normal according to many experts. This is why Tencent wants to dominate the market in its initial stages. Currently, the global giants such as the American GM, German Volkswagen and Google’s Waymo dominate the top tier driverless car technologies. However, companies such as Audi, BMW, Tesla and many more are also coming into the limelight. These companies along with the Chinese giants believe that their intentions and investments will reap fruitful rewards in the future.
On one side there is much positivity from the company’s perspective. On the other side, there is much uncertainty regarding the safety of the passengers and the pedestrians with a driverless car on road. However, some problem is always associated with every new technology coming into the mainstream. Therefore, it is just a matter of time before it becomes the new way of life. Countries such as China and India have issues unique to their own land and people. Thus, they have to develop software and technologies suitable for the homeland to cope with such issues. A technology can be brought from any part of the world but it needs to be customized according to the home needs before launching them in the market. Tencent is taking its initial steps towards technological advancement and diversified revenue source.