We are in the preliminary stages of a revolution in mass transport.
Just as horses were replaced by cars at the beginning of C20, self-driving cars are set to replace cars and trucks driven by humans.
Carmakers have traditionally bought product-liability insurance to cover manufacturing defects. But Volvo and Mercedes are so confident of their self-driving cars that last year they said they will not buy insurance at all. They will “self-insure”—ie, directly bear any losses from crashes.
Parking is a bigger issue than most people recognize.
Get rid of traffic lights?
... but in self-drive cars:
Who Will Benefit From Them
When you talk about transport you have to consider the needs and wants of multiple interest groups. Governments and regulators, insurers, car makers, trucking companies, software companies, taxi operators and motorists.
1. Governments love self-drive cars because they can see huge reduction in accidents meaning lower hospital and welfare costs; and less need to build new roads as existing ones are used far more efficiently Read more here
Morgan Stanley report here estimates that the US economy can save $1.3 trillion per year, once autonomous cars become fully penetrated. To put that number in context, it represents 8% of US GDP.
(Interview with Pres Obama here explaining the American govt's approach to self-driving cars.)
2. Regulators also love self-drive cars because they will reduce costs for policing and for cleaning up after accidents Read more here
MONEY is a huge motivator for legislators and regulators - every dollar saved can go to someone's pet project
3. Insurers love self-drive cars because they will be able to reduce their costs faster than they have to reduce premiums - that's the lesson of past few years as cars have got measurably safer. And they will be able to segment their market and charge variable premiums - very high for those who insist on driving their own cars, for instance, because they know they are a captive market.Read more here
4. Car manufacturers would prefer self-drive cars never happened but recognize them as as inevitable and nobody wants to be the dinosaurs left behind as demand plummets for traditional cars. So companies such as Ford, GM, Audi, Toyota, Mercedes-Benz and BMW are adding self-drive features to current cars.Read more here
Trucking companies want self-drive because they can be replace (expensive and in demand) truckers, saving on wages and insurance costs. Trucks can be operated 24/7, tripling the use of capital with only a small increase in costs.Read more here
5. Software Companies are the New Disruptors
Google has led the way with self-drive cars, proving their potential in the face of widespread scepticism. They can see it as a business, as well as something worth doing for its benefit to society Read more here
Apple doesn't want to be left behind, and is building its own version (will they call it iCarus?)Read more here
Uber is making a big investment because drivers are their biggest cost. Uber board member Steve Jurvetson recently commented that if Tesla developed an autonomous vehicle, Uber would buy half a million of them in 2020.
And passengers in autonomous cars will want something to occupy their time, so expect TV to be the largest beneficiary on a total dollar basis and Home Video to benefit the most on a % basis. As likely relative time share losers, roughly 10-15% of radio and recorded music revenues could be at risk, according to Morgan Stanley.
6. Motorists who can see the advantages and want self-drive cars
Cost: The combination of autonomy and ride-hailing, together with a switch to electric vehicles, seems likely to undermine the logic of car ownership for many people. Ride-hailing services in the rich world currently cost around $2.50 per mile, compared with about $1.20 per mile to own and operate a private car (see chart). But the driver accounts for about 60% of the cost of ride-hailing. UBS, an investment bank, reckons that automation, competition and electrification (which makes cars more expensive to buy but much cheaper to run) will cut the cost of ride-hailing by 70%, to about $0.70 per mile. So a typical Western household driving 10,000 miles a year could ditch its car, use robotaxis and save $5,000 a year. And there are other advantages, explains Mr Thrun: “You can be drunk, you don’t have to look for parking, and your kids can take the car.”(Economist 10 March 2018)
(This costing assumes passengers will pay full cost. Can foresee all sorts of subsidies: "Watch this 30 sec ad and answer 3 questions and we will pay the cost of your next 15 minutes of travel" sort of deals.)
Fuel economy: autonomous cars with vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2X) communication ability will have a far greater understanding of road and traffic conditions and should be able to predict even anticipated loads on the engine allowing them to operate in “cruise” mode all the time. This could result in a similar level of fuel economy savings as using cruise control all the time. Combined with a push for more fuel-efficient internal combustion engines and light electrification, corporate average fuel economy could run up to 75 mpg and above. In a utopian world where all cars are selfdriving, cars can theoretically be made significantly lighter (why reinforce a car that is not going to crash?), potentially driving fuel economy north of 100 mpg.
A few traditionalists hate the idea of self-drive cars
There will still be a tiny group of traditionalists who really want to do their own thing. But they will be outvoted - people won't want to share the roads with unsafe manual cars - and they will have to organize alternative places to drive, just as equine enthusiasts have.
The traditionalists offer similar arguments that the horse riders offered 110 years ago.
"People won't like being driven by a computer." Except we already are, when we get into an elevator, or fly in a plane. Look at trains for an example. A subway train used to have an engineer and a conductor. Then newer systems like BART automated the entire process and made it so that the engineer can do both jobs. Newer, fully enclosed stations can have trains that can be fully automated without the need for anyone on board. People will get used to it fast.
"They will be abused - people will leave all sorts of crap in them. Well, no. The system knows exactly who last used the car, and will charge for both cleanup and inconvenience-to-next-user fee. And a warning sent to the users phone that their riding rights could be withdrawn for a month if it happens again. So, no abuse - people will look after them better than they do their own car.
"Just wait until someone dies in a self-drive car." Learn the lesson from 110 years ago. Automobiles were frighteningly unsafe to start with, (no seat belts, steering column that impaled the driver in a collision, nearly non-existent brakes etc), but they were still far more convenient, cheaper and safer than horse drawn transport.
Are these systems perfect? No. Are they better than humans. YES! by orders of magnitude. A lot of people think that anything less than perfect is unacceptable. I'd agree with that if it wasn't for the fact that ~30,000~ people die every year in the US in auto accidents. That's deaths, not accidents. That giant number doesn't even count lost work, totaled vehicles, broken bones, pain, or even lifetime disability. I find it really interesting that if somebody said "Autonomous driving will never be flawless and at best, will still result in 1,000 deaths per year if it completely replaced human drivers" - it sounds scary. Rephrase that as "if autonomous vehicles reduced traffic deaths by 98%, would you still feel safe with human drivers?" and it doesn't even sound like a question.
"Kids will prank them." - No, because it will be trivial to identify the pranksters. Today, you can already be located by your cellphone address, and ubiquitous surveillance cameras can identify you from your gait, or from just a small bit of your face or ears. And sure you could make it harder to ID you, but how much effort would you have to make? And the stakes will be high - ban from using the network for a period, so you have to walk everywhere. (Sorry, we've got rid of most of the footpaths.)
"Pedestrians will just jump out in front or them, knowing they'll have to stop." No they won't, because there are laws against it - see above as to how they will be enforced. Also, there will be no need for on-street parking, so cities are likely to prevent jay-walking by building fences along the streets to completely separate cars and pedestrians. Cross at the lights, citizen.
"What about the Trolley Problem?" Self driving cars won't make a choice between hitting someone and killing you they will attempt to avoid collisions like a human would but be much better at it. None of these ethical issues are real they are just the imagined bullshiat of people who don't understand the technology. The cars will be more effective than humans in almost any scenario you can think of. In no way can a human possibly react quick enough in an emergency situation. (see below for a more detailed explanation of the Trolley Problem issues)
"They won't be able to cope with heavy rain or snow." Today, no. But think about how far they have come in 10 years. You really think they won't improve that much in another 5? You really think your intuition will be better at handling inclement weather than a computer that's receiving data from dozens of sensors thousands of times per second and adjusting its outputs via feedforward-feedback systems? Dream on. You will be many orders of magnitude safer in an autonomous car in any set of conditions.
And we won't be waiting until AVs can cope with everything. They will come into wide use as commuters. Then people will start pushing to use them in less predictable spaces.
"I use my car as a storage locker." So how much are you prepared to pay for that habit? With self-drive cars you will have the choice of renting a random vehicle as and when you need it, at a very basic cost, or owning one that you keep garaged and maintained for sporadic convenience, paying both upfront capital cost and a fee to use the road network (and that fee will be high bc it will only be rich dudes who insist on personal cars)
"It won't happen in my lifetime." That suggestion is rapidly being overtaken by events. Self-drive taxis will be available in Pittsburg and Singapore August 2016. The benefits will be so obvious that the rollout will be a lot quicker than the the horse-automobile transition. See the section below on How We Will Get There.
"People will resist because their cars will be worthless." New cars are incorporating autonomous features, and can possibly be converted to completely self-drive. But yes, most people are starting to realize that values will plummet. By 2025 only people way out in the country will want them, and by 2030 hobbyists will be the only market.
"This is America. I want Freedom." This one time I was driving to Wal-Mart in my F-350 to purchase some tiny American flags and a case of Dinty Moore Beef Stew when one of these environMENTALists pulled up next to me on their bike. He was eating a tofudog and he was wearing a scarf. This entitled wannabe hipster yuppie narcissist said to me "You know that truck is destroying the environment. You should ride a bike." I stared at him with my steely, righteous gaze and said in my booming, chestnut baritone voice "If your bike is so great, how come you're all skinny and I've got a robust and healthy physique?" Before he could open his effeminate, pretty mouth to speak, I rolled coal all over his ass. An eagle flew over and perched on the exhaust pipe so that he could breathe in the freedom. Some teenage girls across the street were doing a bikini carwash for the church and they cheered and laughed at that dork and a lot of them were thinking about what I would look like naked. Share if you still care about freedom! Sign the petition! ( possibly PocketNinja)
"They are arrogant SOBs trying to force us out of our cars." Fark your 'self driving' car and fark you. My right to freedom of transportation will not be taken from me by Google and their Obamacronys.(Ow! That was my feelings! gets quite emotional about these things) Relax, nobody is Coming For Your Cars. You will still be able to use them but only somewhere and somewhen. If you can afford the insurance. You don't have the "freedom" to purposefully endanger other people. No matter how well you think you can drive.
........ Rush song The Red Barchetta (lyrics here) imagined a future where old cars banned.
And "I've paid for these roads so I should be able to drive on them with whatever I like."Except you lost that argument years ago. You already pay to park on some streets in CBD, or accept restrictions on how long you can occupy a parking spot. Even though you've "paid for these roads". And you already accept restrictions on what you can drive on "your" roads - can't drive an unsafe vehicle, can't drive unless you've paid registration fees, you have to obey road rules. All of these rules will simply be extended to cover what cars will be allowed to drive where and when.
Bottom line, those trying to come up with reasons why self-drive cars won't happen, are simply on the wrong side of history.
The car. Drives. Itself! Holy shit, man! Just accept how awesome that is!
Google car today
How Will We Get There
The last major transition was from horse-drawn to petrol-driven vehicles. At the turn of the 20th century, the biggest challenge facing the world’s big cities was not slums, sewage or soot; it was horse dung. The citizens of New York, which was home to 100,000 horses, suffered the same blight; they had to navigate rivers of muck when it rained, and fly-infested dungheaps when the sun shone. Yet a decade later the dung problem was all but swept away by the invisible hand of the market. Henry Ford produced his first Model T, which was cheap, fast and clean. By 1912 cars in New York outnumbered horses, and in 1917 the last horse-drawn streetcar was retired in Manhattan.
This transition will be quicker, because it is about saving lives, rather than convenience.
Cars (most notably from Google and Tesla) can already handle routine driving and maintain a safe speed. We won’t be handing over the steering wheel this year, but we will begin the prep work: talking about regulations, figuring out the best ways to apply the technology, and testing how humans interact with these vehicles.
- All these cars record and transmit sensor data - Tesla gets a million miles of data every 10 hours, which it uses to continually test it's self-driving algorthms against what the human driver is doing. (Full article here)
November 2016 Nutonomy, the tech behind the Singapore taxis (above), begins trials of autonomous cabs in Boston, and plans to launch public service in 2018.
And a blue paper released by Morgan Stanley bullishly predicted that by 2025 — barring a flurry of onerous regulations or an outbreak of public hysteria — the United States will have reached “a utopian world in which every car on the road will be autonomous.”
The technology to make a self-driving car happen is largely available today and only incremental R&D is required, mostly in the area of testing, durability, reliability, and cost reduction, all of which have largely visible paths. In fact, we believe autonomous vehicle technology is a smaller leap than full electric vehicles — which still need unknown battery breakthroughs in a lab or significant macro disruption to make them viable beyond being niche vehicles.
- China may be first to market. Their road fatality rate is 30x that of the US, there is a high status to being chauffered around, they are quicker to adopt tech innovations such as smartphones, and many Chinese cities have better roads and cellphone infrastructure than Western ones. And Chinese govts are far freer to impose new regulations if they see benefits in terms of congestion and pollution (govt officials don't like traffic jams or smog any more than the citizens do). They don't have a 'driving culture' to deal with.
In 2011, the National University of Defense Technology in China, in partnership with First Auto Works, created an autonomous vehicle using a Hongqi HQ3 sedan. The autonomous vehicle completed a 154-mile journey on a busy freeway from the Hunan province's capital of Changsha to Wuhan, the capital of the Hubei province, in 3 hours and 20 minutes. Researchers reportedly set the top speed of the vehicle at 68 mph, which was fast enough to permit the car to overtake 67 other vehicles on the expressway, and let the car loose to figure out how to get to its destination. Along the way, the HQ3 navigated through fog, thundershowers, and unclear lane markings without incident. FAW says that it has been working on autonomous car technology since 2001.
(i) We are now living in an “era of human-machine relations.” We’ll need regulations and protocols for the time period in which operator-controlled vehicles share the road with fully autonomous ones. We may, for example, have to develop new licensing standards for drivers, but we’ll also have to rethink much of the received wisdom about urban planning and street design. More here on the transition.
(ii) These articles explain how companies are trying to deal with unexpected events
(iii) The liability issue has often been presented as a deal breaker ahead of most of the biggest technological leaps taken by mankind, but that has not stopped us from flying on airplanes or building an electric grid or, indeed, inventing the automobile in the first place. Articles considering liability here.
....... FAQs - Feedback from forums and letters to the editor on liability
Car design will change radically. Today all cars look very similar - a large box for passengers with smaller boxes at each end for engine and luggage. Some vehicles will get much smaller and lighter - just transport for one. Or they can go the other way - a mobile lounge rather than just a car