Spotify now offering refunds for discontinued Car Thing device
Spotify, the music streaming giant, has announced refunds for customers who purchased its now-discontinued Car Thing device. The $90 (around ₹7,480) gadget was designed to connect phones to car speakers via Bluetooth, in vehicles without built-in smartphone integration. This decision follows a wave of customer dissatisfaction and a class action lawsuit against Spotify, after it rendered the device obsolete by the end of 2024.
Discontinuation sparks backlash
Before the refund announcement, Spotify had instructed Car Thing owners to dispose of the device once it stopped working on December 4, 2024. This move led to significant customer dissatisfaction and a class action lawsuit against the company on May 28. However, it's worth noting that Spotify began offering refunds four days prior to the lawsuit, on May 24.
Spotify's struggles continue
The discontinuation of the Car Thing is another blow for Spotify, which recently laid off 17% of its staff and has been grappling with profitability issues. The Car Thing, Spotify's first and sole hardware product, was discontinued less than a year after its launch in 2021. The decision to stop manufacturing new units in 2022 reportedly cost the company $32 million.
