Business Models Likely To Affect The Future Of Autonomous Cars
Sep 20, 2017 22:01
Autonomous vehicles are essentially already available, they can make fast decisions that will likely help reduce traffic fatalities, and the country’s leaders are sitting up and taking note of this trend. Just recently, there have been several groundbreaking announcements in regards to autonomous cars from companies like Ford and Tesla.
However, many questions remain unanswered including how city parking will change, what will happen to long-haul truck drivers or ridesharing drivers, and what is the acceptable number of sensors in an autonomous car.
Advantages of technological innovations, like automotive prototyping and emerging business models, will answer most of these open questions. For example, if carmakers decide to sell vehicles directly to fleet operators instead of individuals, this will change how money for research and development is allocated. To understand the situation better, here are a few key questions as well as the implications autonomous cars will have.
What Will The Operating System Of The Autonomous Car Look Like?
Microsoft, Google and Apple, through their respective operating systems, Windows, Android and iOS are the biggest companies in the world with their own operating systems. This is because operating software is a critical piece in the world of technology and computers because they offer a layer for controlling hardware that is directly accessible to end users. In the IT world, each of these companies has a unique strategy for capturing and retaining value.
Now, automakers and technology firms are racing to create software for driving autonomous cars; however, it is still unclear how they will manage to monetize the software. The most likely scenario is an emergence of several models that will deeply affect how companies invest in operations, lobbying, marketing and R&D.
Will Users Pay For Transportation As A Service Or Will They Own The Vehicles?
Some carmakers are already projecting a future where they will sell vehicles directly to users as well as selling transportation as a service. Under the latter business model, customers will be required to hire free-floating cars, call a car with a driver or even order a car without a driver in future. Such companies believe that people want to use different modes of transportation in different places and times from a single phone app.
As the world veers towards providing transportation as a service, things will drastically change for car companies. Today, automobile manufacturers are the biggest customers in the advertising world. When consumers no longer need cars, and instead purchase Zipcar rentals and Uber rides, this will drastically change how advertising monies are channeled. In addition, the set profit pools of the automotive industry will also change.
Who Generates, Processes And Owns The Data?
Autonomous vehicles will both consume and generate a huge amount of data for navigating roads, avoiding obstacles, understanding speed limits and parking laws, as well as passenger data for personalized trip experiences. In addition, GPS, sonar, radar, cameras, lidar and other sensors mounted on autonomous cars will further improve things like ride sharing companies’ route optimization.
The expected data will require new infrastructure, software and business models for sharing, processing and using the data. Already, companies are establishing partnerships for gaining access to new data sets for high-definition maps that are set to improve the drivability of autonomous cars.
Nevertheless, the world is not about to flip a switch and suddenly go for autonomous vehicles in a day. For some time, autonomous cars and human-driven cars will continue to co-exist. However, in the next 3 to 5 years, the public should keep a close eye on how carmakers are planning to make money from autonomous cars; these decisions will have important consequences on the future of transportation.
Drivers know that car accidents can be really expensive in terms of paying for repairs especially when other drivers involved in such do not have any insurance of their own. When other drivers have not had insurance it meant the all insured driver would end up losing out financially, either by having to pay higher levels of excess or via higher premium costs. However there are now legal ways, in which costs can be recovered from the uninsured drivers involved in traffic accidents. Recovering costs is something that careful and insured drivers should do after uninsured drivers have caused or contributed to accidents. The issue can be serious for drivers that are faced with repair costs when they did not cause the damage in the first place. Read more
Getting a low car insurance quote is not always possible, even when it is possible it’s never easy. Although you can find many auto insurance agencies online few offer low deals for everybody. However, by following some simple guidelines you can get the cheapest quote possible on your auto insurance. In this article we will discuss the tips and tricks involved in getting that low insurance quote. Read more
Buying a vehicle may seem easy but it entails a number of complications. There are several factors to consider such as budget, running costs etc. In fact, it can be one of the most expensive you will buy through the lifetime. Read more