News Intel Starts Work on New Mobileye Development Center

[Admin]

Intel on Tuesday laid the cornerstone for a new eight-story Global Development Center in Jerusalem, Israel. When it is completed in 2022, it will provide work for 2,700 employees.

Intel Starts Work on New Mobileye Development Center : Read more

 

[bit_user]

First, I wonder how much trouble they'll have with filling those job posts. So much of the Israeli workforce seems to work in high tech that I wonder if they're starting to run low on well-qualified candidates.

Secondly, this caught my eye:

Its plans have also expanded considerably, with Mobileye planning to offer a ride-hailing service by 2023.

A lot of car companies are looking towards the future of ride-hailing and the corresponding drop in private car ownership and rebranding themselves as mobility providers, potentially offering their own ride-hailing services. This would put Mobileye in direct competition with a lot of its customers. So, how many of those companies are willing to continue buying from (and therefore supporting) a future competitor? I know I'd sure be looking hard at alternatives.

Maybe Mobileye is worried about the same thing as car companies - as car sharing increases, you'd have a decline in net sales. For a supplier of car parts, that would mean a drop-off in sales volume. So, the way around that is to get some sort of service revenue. Still, competing with many of your customers seems like a risky way to go about it.