Music streaming giant Spotify has recently drawn the ire of its customer base due to the discontinuation of Car Thing, its specialized hardware for streaming music in vehicles. Users took to social media platforms such as TikTok to voice their discontent after Spotify announced in May that Car Thing’s services would cease on December 9, 2024. The end of support for the product, which launched in February 2022, came as a surprise to many, especially since the device was aimed at customers without integrated infotainment systems in their cars.
Despite the relatively short lifespan of the product, Spotify’s CEO Danie Ek had previously indicated substantial consumer interest, citing that over two million individuals had joined the waitlist for Car Thing before its launch. However, it’s speculated that Car Thing did not meet the company’s performance expectations or justify ongoing investment, particularly given today’s economic challenges—a situation highlighted by Spotify’s layoffs which affected approximately 1,500 employees.
Amidst concerns over the company’s financial stability, customers primarily sought functionality from their devices—or at least compensation for the $50 expenditure. Some customers initiated direct contact with Spotify’s customer service through various communication channels and reported mixed outcomes. Responses ranged from being offered additional months of Spotify Premium to outright rejections of reimbursement requests.
In response to growing customer backlash, Spotify established a refund process for purchasers of the Car Thing, contingent upon proof of purchase. Additionally, the company sent out a second email to Car Thing users, guiding them towards the appropriate support link for inquiries, albeit without any explicit promises of refunds.
Despite these attempts to appease customers, many continue to implore Spotify through TikTok posts and comments not to render their devices inoperative.
The controversy surrounding Car Thing has also led to legal action. Spotify faces a class action lawsuit, accusing the company of deceiving consumers by selling a product with a foreseeable short life span without issuing refunds. This legal challenge is captured by reports from Billboard, stating a lawsuit was filed on May 28 in the U.S. District Court for the Southern District of New York.
In addressing concerns about Car Thing, a Spotify spokesperson emphasized that the initiative’s primary aim was to better understand in-car listening habits. With the completion of this exploration, the service is transitioning away from the hardware and steering users to other in-car listening options presented on their website. Users with queries are advised to contact their customer support team.
The Car Thing situation joins a list of grievances from consumers, including anger over newly gated features such as lyrics, which now hide behind a paywall, and the backlash that followed price hikes to subscription rates. Further subscription fee increases are anticipated in 2024, which could potentially exacerbate customer dissatisfaction and impact the streaming service’s subscriber base.
