Ford has made the decision to shut down VIIZR, a software-as-a-service company that was building an app to assist tradespeople in managing their businesses. The app, developed in partnership with Salesforce, aimed to help plumbers, locksmiths, and electricians schedule field appointments, send invoices, and manage customers. However, the project has been discontinued due to lack of customer demand.
Key Takeaway
Ford has shut down VIIZR, a company building an app for tradespeople, citing lack of customer demand and a focus on other software products.
The Closure of VIIZR
VIIZR was a separate company majority owned by Ford, with Salesforce as a minority investor. The joint venture aimed to develop digital tools to support Ford’s commercial vehicle and service business, Ford Pro, with a revenue target of $45 billion by 2025. However, Ford has ended its investment in VIIZR and discontinued the product due to limited demand and a strategic focus on telematics, fleet management, and charging productivity software.
Ford Pro’s Continued Success
Despite the closure of VIIZR, Ford Pro continues to thrive. The division generated $42.7 billion in revenue in the first nine months of 2023, a significant increase of 22% compared to the same period last year. Ford Pro’s software subscriptions, which encompass fleet management, electric vehicle charging, data analytics, and telematics services, reached 476,000 in the third quarter, representing a nearly 50% year-over-year growth.
Competition and Limited Demand
While Ford Pro’s business remains strong, the development of the software-as-a-service app faced fierce competition and limited demand. Despite the initial optimism surrounding the app’s potential, changes to consumer behavior brought on by COVID-19 and the evolving marketplace for field service management apps contributed to its decline. The focus of the app was on job scheduling and automating back-office administrative tasks, rather than directly managing vehicles or addressing Ford Pro’s core business objectives.
Even though VIIZR has been discontinued, Salesforce, Ford’s partner in the joint venture, continues to provide enterprise software solutions to Ford Pro.
It is evident that Ford’s decision to shut down VIIZR was driven by market dynamics and the need to prioritize its core software offerings. While the app for tradespeople did not gain sufficient traction, Ford Pro’s success in other areas demonstrates the company’s ability to adapt to changing market conditions and deliver results.
