INNOBLOG

Chapter 10 of The Innovators Dilemma uses the principles of disruptive innovation to discuss the disruptiveness of the electric car to traditional automobile manufacturers. While the current hybrids such as the Toyota Prius are not that disruptive they have gained in popularity and their future is looking bright. This week I received a newsletter from my VW dealership with what could be an even more disruptive product. The article discussed the Bio-Beetle, a car fueled by 100% recycled vegetable oil, also known as bio-diesel. The technology is simple; the fuel consists of recycled animal fats and restaurant greases. Bio-diesel may not be cheaper than gasoline (the industry currently only produces 50 million gallons annually) but it is renewable. The performance certainly is not better than gas-powered cars but probably good enough for non-demanding customers (such as tourists putzing around Maui).

This car is currently only available for rental in Hawaii. Is this something that could pose a threat to car manufacturers? The signs are pointing in that direction. It is unclear whether VW will pursue bio-diesel for mainstream use in their vehicles. Other car manufacturers are bound to ignore this alternate fuel while they concentrate on building better gas-powered and hybrid cars. And, if nothing else, it makes me feel better about ordering fries.