Potential Impact of Self Driving Cars

Many traditional car makers such as Ford and Mercedes Benz as well as new entrants such as Tesla and Google are working to produce driver less cars or self-driving cars. The technology has sufficiently improved to enable them to test prototypes where there is a driver behind the wheel but the car mainly drives by itself. Some cars can even locate a parking slot and self-park.

This all make sense, self-driving cars will never drive drunk.

Advantages of Self Driving Cars

Self-driving cars have multiple advantages such enabling disabled people to be more independent. Millennials in a survey has said that they would use the additional time provided by the self-driving car to catch up on work while Baby Boomers would like to enjoy the additional leisure time. Long distance travel by road is also expected to become less tedious with self-driving cars. Additionally, studies have estimated that the number of cars owned is likely to halve with the introduction of self-driving cars.

Fewer Cars Needed

Studies of families and the way they use cars has revealed that while many have two cars, they do not actually need to use them at the same time. If self-driving cars are available, it is possible for the car to drop a person off at work and return home to pick up another to run errands and so on. While this estimate is based solely on the times when people use their cars, other factors need to be taken into consideration as well.

Additional Mileage

While technically a self-driving car could come back to pick up a second family member, not everyone is likely to be open about sharing the car. Additionally, if the travel distances are significant enough, this could increase the cost of the commute if the car has to come back to run errands before going back to pick up the first person.

Additionally, those who do not currently own a car because they cannot drive might also purchase a vehicle. If people do share their cars since they do not have to worry about if this person is a trustworthy driver or not, this could lead to earlier replacement of the automobile which will make the automobile industry content.

Impact on Taxis, Airport Parking Spaces

Two areas where self-driving cars could have a greater impact are taxi services and airport parking slots. If self-driving cars are available, those driving themselves to the airport can send the cars back home instead of parking them at the airport. This could also reduce the demand for taxis to take people to and from the airports and there would be less reasons for airports to build such massive parking garages.