How to raise $900 billion to finance 18 million self-driving cars is almost a bigger challenge than manufacturing them. Luckily, there are already organizations which specialize in this: Leasing companies.
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Leasing companies are specialized in raising capital and using that to generate a steady revenue stream. There is little difference for them between consumers or sharing platforms paying for a car.
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With car sharing, riders care more about price and availability than which car they get. And once these personal preferences no longer matter, leasing companies will optimize for total cost of ownership. Expect cars which are easier to maintain, clean, and repair.
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A healthy marketplace will have several sharing platforms and several fleet owners compete for the rider’s business.
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All of this will be a quadruple hit to the fancy car manufacturers of this world: (1) From gasoline to electric wipes out the engine and drive train competences. (2) From manual-driving to self-driving replaces mechanical expertise with software knowledge. […]
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[…] (3) From status objects to shared vehicles removes the brand advantage. (4) From personal ownership to shared fleets undoes the dealer sales network. This pretty much just leaves them with their manufacturing capability (which we shouldn’t underestimate).
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Let’s pause for a moment and recap what we have so far: (1) People want cheaper, faster, and safer transport. (2) Self-driving, electric cars will outperform manual gasoline ones. […]
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[…] (3) Sharing a self-driving car will be cheaper than owning one. (4) Leasing companies will own car fleets which will be available through sharing platforms. (5) It’s unlikely existing car brands will win the market in this new world.
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Now that we have self-driving cars, what else will change? For one, the roads will be different. Once all cars are self-driving, we don’t need road signage or markings anymore. Traffic lights will be a thing of the past. Good digital maps are how self-driving cars navigate.pic.twitter.com/DnzbAhx7c5
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Rush Hour by Fernando Livschitz https://vimeo.com/106226560
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