A few big technology companies such as Google, Apple and Mercedes-Benz are researching and building driverless vehicles. It is certain at some stage the driverless vehicles will be widely used globally.
CB Insight's research outlines the following industries could potentially be impacted
- Insurance: It is believed that driverless cars will make automobile transportation a whole lot safer, and could reduce auto accidents. hence, demand for insurance will ultimately decrease as risks of a car crash drop.
- Audo repair: Fewer accidents will also mean fewer demand for mechanics’ traditional expertise. Further, the expertise will become less valuable as software provisioned with the cars could give drivers more transparency into the repairs they actually need, and allow them to take preventive maintenance and avoid expensive repairs
- Professional drivers: This is obvious. Driverless automobiles will reduce demand for truckers, taxi drivers, and other driving professionals.
- Hotels: Some people in car industry predict that many motel customers, especially young travelers, will choose to sleep in their driverless cars 20 years from now.
- Airlines: Domestic and short-haul flights face a significant threat from self-driving cars. When car travel is more convenient, many people will choose to take an on-demand car ride for shorter trips instead of going through the many hassles of air travel.
- Auto Parts: Smart driving software, like brake assists, will put less wear-and-tear on cars, necessitating fewer replacements. Traditional parts manufacturers will likely face competition from more technology-focused companies like Nvidia.
- Ride Hailing: Self-driving cars will change the game for ride-hailing companies like Uber, which is said to be considering its own autonomous car fleet, and Lyft, which is partnering with General Motors to build its own fleet. Uber wouldn’t have to pay drivers anymore in a driverless future, but it likely would have to shoulder the costs of owning its cars.
- Public Transport: Why wait around for a bus that will drop you off five blocks from your destination when a driverless car can show up at your doorstep immediately and take you exactly where you want to go?
- Parking garages and lots: The need for long-term parking will decrease as driverless car fleets move continuously on people's demand. These fleets could save huge parking space. Those property owners of garages and lots may need to think about selling their properties or do something differently
- Fast food: In self-driving cars, people will simply input the coordinates of their destination, reducing the chance that they will decide to take a detour for an impulse food purchase. Fast-food restaurants located near highway exits will take a hit, as people will stop for petrol less frequently when they are being transported by a driverless fleet whose cars may refuel while they are not being used.
Source: CB Insight research brief; Cover image: Pixabay