The Future of Mobility: Embracing Robotaxis for Sustainable Travel
Written on
Chapter 1: The Case for Vehicle Sharing
The time has come to rethink our transportation habits. As I assist a client in preparing their investor pitch within the vehicle-sharing sector, one question stands out: "Is car-sharing really on the rise? Nearly everyone I know has a car."
However, McKinsey provides a compelling insight: "Research indicates that personal vehicles sit idle approximately 95% of the time, typically carrying only a small number of passengers. For instance, in urban Europe, the average occupancy of a passenger car is just 1.2 to 1.9 individuals."
This statistic raises a critical issue: is it practical to have an average of one person in a four-seater vehicle? This inefficiency is a significant waste of available space.
Moreover, we face an escalating challenge with CO2 emissions from traditional gasoline-powered vehicles, which dominate the automotive landscape. To put things into perspective, what is the ratio of electric vehicles (EVs) compared to internal combustion engine (ICE) vehicles globally?
According to Deloitte Insights, the breakdown reveals a stark contrast: plug-in hybrids (PHEVs) appear in a lighter shade of blue, while battery electric vehicles like Teslas are represented in an even lighter hue. In stark contrast, ICE vehicles dominate in dark blue.
To highlight the environmental impact of these vehicles, let's crunch some numbers. The New York Times states that over a span of 200,000 miles, a typical ICE vehicle emits 66 tons of greenhouse gases in the U.S., while a battery electric vehicle emits only 39 tons over the same distance.
Assuming you drive 50,000 miles annually—still above average—the emissions would be significantly lower when divided by four. Thus, an ICE vehicle would produce approximately 16.5 tons of greenhouse gases, while an EV would contribute around 9.75 tons.
Switching to an EV seems like a wise choice for the environment. But here’s another perspective: consider carpooling with a neighbor who has three empty seats. This arrangement could potentially eliminate the 9.75 tons you’d otherwise contribute with your new EV.
While it's true that your added weight might slightly increase your neighbor's carbon footprint, the net result would still be more sustainable than driving alone.
The concept of vehicle-sharing is increasingly appealing to investors, not just in terms of carpooling but also through ridesharing services like Uber. From an environmental standpoint, an Uber driver essentially serves the same function as your neighbor—transporting one person while three seats remain empty.
Section 1.1: The Network Effect in Mobility
The business model of vehicle-sharing attracts substantial interest from investors, largely due to the "Network Effect." As explained by venture capitalist Andreessen Horowitz, platforms and products that benefit from network effects improve as they expand, increasing value for users while attracting additional resources to enhance their offerings.
Consequently, reliance on services like Uber will grow, requiring minimal effort from the company to retain users. People will increasingly turn to Uber for rides, recommend new transportation apps, and share their experiences with platforms like Airbnb, thus bolstering the networks of these companies.
Subsection 1.1.1: The Vision of Robotaxis
Looking ahead, can you envision robotaxis on our streets? Instead of Ubers with multiple empty seats, imagine a vehicle without a driver at all. Companies like Cruise are already making strides in this direction, having raised $15 billion and continuously expanding their operations.
Elon Musk has even introduced a Tesla robotaxi concept in his latest publication. Considering the environmental concerns and the ongoing discourse between EVs and ICE vehicles, it stands to reason that robotaxis could become a prevalent mode of transportation in the coming years.
In fact, I predict that some nations may mandate the use of such vehicles and prohibit personal driving entirely. This isn't just an emotional appeal—driving causes around 2 million accidents annually in the U.S. Personally, I find driving tedious and see no reason why machines shouldn't transport us autonomously.
Chapter 2: The Business of Tomorrow
In the first video, titled "Is this the Tesla Robotaxi? and MORE! | Tesla Time News 419," various concepts surrounding Tesla's robotaxi are explored, highlighting its potential impact on the future of transportation.
In the second video, "Ives Still Bullish on Tesla Despite Robotaxi Delay," market analysts discuss the ongoing optimism surrounding Tesla's future, despite delays in the rollout of their robotaxi service.
The rapid growth of innovative companies like Airbnb and Uber illustrates the adaptability of certain industries to future demands. While Uber's fleet may not epitomize professionalism, the underlying concept addresses many contemporary challenges. Similarly, Tesla's EVs offer a viable solution for reducing CO2 emissions.
The key takeaway is the importance of solutions in the business realm. That’s my perspective on the future of mobility. What are your thoughts? Do you envision a world where transportation is primarily hailed (like Uber), shared (like carpooling), or something entirely different? Share your views in the comments, and let’s engage in this thought-provoking discussion.
I'm Al, a business consultant based in Zurich, Switzerland, and I am committed to delivering valuable insights to you, the reader. Feel free to connect with me on various social media platforms for more engaging content.