recentpopularlog in

jerryking : passenger_economy   1

The End of Car Ownership - WSJ
By Tim Higgins
June 20, 2017

Thanks to ride sharing and the looming introduction of self-driving vehicles, the entire model of car ownership is being upended—and very soon may not look anything like it has for the past century.

Drivers, for instance, may no longer be drivers, relying instead on hailing a driverless car on demand, and if they do decide to buy, they will likely share the vehicle—by renting it out to other people when it isn’t in use.

Auto makers, meanwhile, already are looking for ways to sustain their business as fewer people make a long-term commitment to a car.

And startups will spring up to develop services that this new ownership model demands—perhaps even create whole new industries around self-driving cars and ride sharing.

**Drivers: No more permanent arrangements**
The business of ride sharing may take on some new forms. Startups such as Los Angeles-based Faraday Future envision selling subscriptions to a vehicle (e.g. a certain number of hours a day, on a regular schedule for a fixed price).....Other companies are experimenting with the idea of allowing drivers to access more than just one kind of vehicle through a subscription.....Elon Musk has hinted that he’s preparing to create a network of Tesla owners that could rent out their self-driving cars to make money....Companies are already looking at how to market vehicles to overcome some of the possible psychological resistance to nonownership. Waymo, the self-driving tech unit of Google parent Alphabet Inc., has begun public trials of self-driving minivans in Phoenix for select users, with the eventual goal of testing them with hundreds of families.

**Big auto makers: Making peace with on-demand services**
As a result of both driverless cars and fleets of robot taxis, sales of conventionally purchased automobiles may likely drop. What’s more, because autonomous cars will likely be designed to be on the road longer with easily upgradable or replaceable parts, the results could be devastating to auto makers that have built businesses around two-car households buying new vehicles regularly. Currently, cars get replaced every 60 months on average...to get drivers to buy a vehicle of their own is to help owners rent out their vehicles,....GM is hedging all bets, investing in autonomous vehicles, Lyft, a car sharing service (Maven) and allowing Cadillac customers the ability to subscribe to ownership.

**New businesses: Helping to power a new industry**
....Autonomous vehicles could ultimately free up more than 250 million hours of consumers’ commuting time a year, unlocking a new so-called passenger economy, .....turn away from using the exterior of the vehicle as a selling point and focusing on making the interior as comfortable and loaded with features as possible.... turning cars into living rooms on wheels:.....Design firms will also cook up features designed to ease people into the practice of sharing rides regularly (with strangers).....allowing cars recognize to passengers’ digital profiles and become more responsive to their needs (caledaring, eating habits, etc.)....Existing industries may change to support an autonomous, shared future. For instance, the alcohol industry might see a rise in drinks consumed weekly with customers not having to worry about driving home,....Managing autonomous car fleets may be a new line of business for dealerships
automotive_industry  automobile  on-demand  autonomous_vehicles  end_of_ownership  Waymo  Tesla  sharing_economy  ride_sharing  start_ups  transportation  ownership  accessibility  Zoox  dealerships  Lyft  Maven  Reachnow  Getaround  subscriptions  Faraday  passenger_economy  connected_cars 
june 2017 by jerryking

Copy this bookmark:





to read