Smartphones are the new car keys

Remember car keys?

That’s probably what we’ll be saying soon, because carmakers have caught the tech bug, and now they’re working nonstop to reinvent everything we know about transportation.

As more vehicles hit the streets with advanced safety and connectivity features, it’s natural to expect that certain artifacts of the car-ownership experience will one day disappear.

Volvo has announced that beginning in 2017 it will start selling its new cars with digital keys only.

The service is part of a planned Volvo mobile app that will do everything a physical car key can do, plus something extra.

The Bluetooth-enabled digital car key will live on a user’s smartphone, which can be used to lock, unlock, start, and drive the car.

There are still lots of unanswered questions about the security of this technology, but Volvo says people will be able to opt for physical keys if they want them.

A sharing feature will allow users to send a copy of their digital key to other phones, providing access to unlock and drive the car.

“Apart from this, you can also receive a key,” Volvo’s director of new cars, Martin Rosenqvist, said, “so for car-sharing or rental services, you can now book, find, and access the car” through the app.

Bryan Logan/Business InsiderA screenshot of the Volvo on Call app.

Cars as a service

That’s the other big news here. Volvo is getting into the car-sharing business with its company Sunfleet.

A trial run will begin at Gothenburg Airport in Sweden this spring.

Volvo is joining GM and Audi, among others, in diversifying its business outside the traditional dealer-sales model.

It’s a venture automakers are taking quite seriously after witnessing the success of the ride-hailing giant Uber and car-sharing services like Zipcar.

One automaker, multiple strategies

GM launched its own car-sharing service, Maven, last month, and it announced a $500 million investment in Uber’s ride-hailing rival Lyft. Audi last year started Audi on Demand, a car-sharing service that delivers its new vehicles to customers.

Audi also led a $28 million Series C funding round for the rental startup Silvercar earlier this year. Silvercar maintains a fleet of silver Audi A4 sedans — the only car you can rent from the company’s major airport hubs around the country.

The moves Volvo is making in this space show that the company has a comprehensive strategy to help it regain market share in the US. These latest initiatives come at a time when Volvo is just beginning to see the fruits of a multibillion-dollar turnaround that’s already underway.