Automatic, manufacturer of a networked car dongle, today informed customers via email that the company will cease all operations on May 28th. The company claims that this is the victim of the COVID-19 shutdown.
"Like many other companies in the United States, the COVID-19 pandemic has had a negative impact on our business," it says, "and we made the difficult decision to discontinue the Automatic Connected Car product, service, and platform."
The information, which is also posted on the company's website, indicates that the service remains active until the end of the day on May 28. From this point on, the services will be discontinued. This includes crash reports, location approval and breakdown assistance. The Auto Sign In service and third-party apps shut down a month later.
The startup, founded in California in 2011, was bought six years later by the SiriusXM satellite conglomerate. Automatic's $ 100 dongle gained traction through its user-friendly auto monitoring system. In May 2015, a third-party app developer SDK was launched that raised $ 24 million the following month. Over the years, he also managed to work with a number of key insurers as he was able to provide additional insight into driving habits.
The company came under fire last May after announcing that it would end support for the first two generations of its products. Support for the new products will also end this May. Automatic offers some discounts for a limited number of customers.