In an era when every square foot and extra minute along a supply chain mean dollars saved or squandered, it’s not surprising that auto dealerships have been facing uncomfortable scrutiny. Protected by franchise laws, these icons of American commerce struggle to justify their value to customers as well as automakers new and old. It’s in their own best interest to step out from behind their legalized shields and figure out how to adapt.

The transportation industry, like many these days, is changing rapidly. Public and shared transportation are on the rise. People are less inclined to rush out and buy a car. Cars are driving themselves, and real-time analytics rule. Automakers, keenly responsive to customer trends, are busy creating a new breed of vehicle: the mobile online lounge. Commenting last year on Tesla’s disruptive push for direct sales, an article in Maxim hinted that car dealers have only themselves to fear: “The simple fact is that Tesla isn’t in the combustion engine business; it’s in the killer app business.” Increasingly, new cars and old business models just don’t mix.

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