Three areas where self-driving cars will bring new opportunities

Self driving cars1.jpeg

Summary:

  • Secondary effects of self driving cars in land use, advertising and retail:
    • Ride-sharing companies will own all/ most of cars and manage them in fleets. These fleets will be in dedicated parking lots and serve as distribution centers (cars will be most of time on the road) –> a lot of space is going to be repurposed
    • Modern homes, with a one- or two-car garage, can have their garage space repurposed to become another bedroom or living space (same logic also applies to driveways) –> will affect property prices. and change in architecture / design of houses
    • Parking lots are also going to be repurposed –> spots for new homes, office buildings, retail stores, factories, and much more (same logic applies to the land below gas stations and car mechanic shops)
    • There will be more suburbs and with AVs, there’s no point in having traffic lights
    • Rather than being thought of as a mechanical machine strictly for mobility, cars will transform to become “living rooms on wheels.
    • Simplest way to advertise in AVs is by displaying ads on a car’s infotainment system
    • More advanced would be location based ads –> when a passenger finds a new point-of-interest like shown in the GIF above, a promo related to the place, such as a discounted hotel rate, appears. A passenger may click on the ad and accept a detour for the car to navigate to the destination.
    • Convenience stores could place boxes/ fridges with snacks in an AV and enable the passenger to buy goods during the ride

So what:

  • AVs will enable exciting new use cases and drive value creation in multiple areas we cannot even think off –> there will be significant first mover advantages for those offering AV enabled services and inventing new AV enabled business models
  • Given the multitude of possibilities triggered by the EV revolution it will be tough for businesses and managers to stay focused –> speed and clear prioritization is required to be successful (solid, but frequently tested business cases need to inform the most promising services/ business models)
  • Taking into account the novelty and rapid development it seems questionable that incumbents will be successful in many of these AV-enabled service and business model opportunities. There will be a enormous wave of startups trying to win the AV service and business model niches –> Governments should actively push these AV secondary effect startups; incumbents should enable their M&A divisions to identify promising candidates; students should target AV secondary effects as promising area for a career 

Link to article: Three areas where self-driving cars will bring new opportunities

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