Auto repair, real estate, hotels, auto dealers and trucking — many large industries will experience a shift in their need and unitization of existing employees.
Imagine a time in the not too distant future (many predict less than one or two decades) when you are driving down the highway watching tv or reading a book while semi trucks are flying by with no drivers. This reality is being built now by leading automotive and technologic companies.
This new future will have a far-reaching effect well outside the auto industry.
AUTO INSURANCE AND AUTO REPAIR
Consider the possible changes to the auto insurance and automotive repair industries. McKinsey predicts that driverless cars could reduce US auto accidents by 90%. This would save insurers money on payouts, but demand for insurance will ultimately decrease as car accenting diminishing. This possible decreased demand have already lead providers to start working on usage-based insurance policies (UBI’s) which charge consumers based on how many miles they drive and how safe they are on the road.
Auto repairs will become less needed with fewer crashes and regular maintenance will become more automated as automotive technology improves.
PROFESSIONAL DRIVERS AND TRUCKING
Driverless automobiles will reduce demand for truckers, taxi drivers, and other driving professionals. Uber is already working on a fleet of driverless cars. This would reduce the cost of operations because they wouldn’t have to pay drivers, but they would also take on the cost of owning and maintaining their own vehicles, a cost that is now covered by Uber drivers.
With fleets of available ready-to-ride driverless cars available to the public, the model switches from traditional car ownership to a subscription-based service. Instead of purchasing a car from the dealer you could subscribe to a ride sharing services that gives you access to driverless cars across your city or even the county as a whole. This would change the primary purchaser of automobiles from individuals to corporations. Corporations could use the number of units purchased from dealers as a bargaining tool to drive down margins.
HEALTHCARE COST AND PROPERTY DAMAGE
According to the National Highway Traffic Safety Administration (NHTSA), U.S. motor vehicle crashes cost almost $1 trillion in loss of productivity and loss of life per year. Already, improvements in vehicle safety have driven deaths to an all-time low of 32,675 in 2014.
If the estimates for increased safety with driverless automobiles are correct we would see a 90% reduction in property damage and personal injury, a savings of $900 billion dollars per year!
CYBERSECURITY AND MANAGING V2V
V2V stands for vehicle-to-vehicle communication, which is required for proximity detection between vehicles and this need presents an enormous strain on wireless data exchange and internet providers. This requirement would require improvements to existing networks to handle the increased data demands.
Cybersecurity becomes an even larger concern when you are trusting a computer and network connection to drive your vehicle for you. Imagine the liability of having an entire fleet of driverless vehicles hacked, the possibilities for damage to person and property is endless.
DRIVING DYNAMIC SHIFT IN OUR FUTURE
Many players are working hard and investing billions to make this futuristic concept a reality.
Google’s Self-Driving Car Project has probably done more than anything else to bring the idea of driverless cars into the public conversation — and to the attention of future-minded investors. Now known as Waymo, and structured as a subsidiary of Google parent Alphabet.
General Motors has finished making 130 self-driving Chevrolet Bolt test vehicles, an achievement that the automaker says will help put it at the forefront of the race to develop and deploy autonomous cars.
CEO and Chairman Mary Barra said recently GM is the only automaker currently capable of mass-producing self-driving vehicles.
Tesla rolled out another Autopilot update in July 2017 as it inches closer to its most ambitious demonstration yet: an autonomous Tesla driving itself between Los Angeles and New York. Tesla has been rolling out updates to its second-generation Autopilot system, known as Enhance Autopilot, since January. The updates will eventually pave the way for Tesla cars to become fully autonomous later down the road.