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Business regarding the future of autonomous vehicles

Kaya Johnson, Kaya Johnson
0 Comments| September 29, 2017

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Autonomous vehicles are pretty important and promising nowadays and there are still many unanswered questions regarding their viability. Of course, we are aware that the transition will curb most of the traffic situations that have been threatening the modern world. It could mark the end of annoying traffic jams, mutual highway accidents, as well as various cases of civil disobedience of traffic rules and regulations.

But we also know that the switch from human driving cars to self-driven vehicles would not be instantaneous. Even so, how are these autonomous cars going to make certain ethical decisions peculiar to human drivers? What are the necessary adjustments that will be made to our streets, cities and packing spaces in order to accommodate these vehicles? What is going to happen to those people who drive for a living?

Apart from the inputs of technology, answers to most of these questions will also rely on the prevailing business models that will sustain the operation of autonomous vehicles. There is no clue yet as to the monetization strategy that will be adopted by the companies currently pulling all their resources to build the operating software of these cars. But we are certain that the underlying business models and profit interests of these companies are pointers to how they are going to respond to the questions arising.

What are these questions and how do we see autonomous vehicles fitting into our society today? Let's look at the most pressing issues. What kind of OS should we expect to see? We are already familiar with the operating systems of tech giants like Microsoft, Android and Apple, and their monetizing strategies. We know Google adopts ad campaigns to derive value from its operating system while Apple profits through its hardware business. Microsoft on the other hand, earns directly by charging users for the essential apps that runs on their OS. However, for autonomous vehicle makers, there is no clue as to how they will earn value from the OS that will drive the new cars.

How will the payment be made?

It is still not clear how users are going to pay for transportation. Whether it's going to be on a service basis or if they will own vehicles themselves.

Right now various companies are adopting different approaches. While some like BMW are selling and also offering transportation as a service, others like Mazda believe there will always be people who prefer driving their own vehicles.

What about data?

There is also public interest as to how companies are going to process the huge data that will be generated by autonomous vehicles. Several issues like ownership and accessibility will also need to be addressed.

What will be the roles regulators play?

Automobile manufacturers often need to work closely with the government to ensure they are complying with regulations. It is somewhat difficult to decide whether it would be better for regulators to determine what the industry will build or if they will allow them to guide themselves. But balancing these two can reduce a lot of traffic fatalities.

What does the future hold for autonomous vehicles? We may not be able to tell for now, but how manufacturers are going to generate revenue from the system is even a bigger concern.


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