Higher Profit Margins: Old And New Forces Grab Automatic Taxi Market

- Dec 11, 2017 -

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GM AmEx Dan Ammann publicly stated at a recent investor event in San Francisco that "the company plans to launch a fully automated taxi in a number of intensive urban environments by 2019 in response to Waymo, Challenges posed by competitors. "


Earlier, General Motors has said that autonomous vehicles are an important part of their future business, but did not disclose more details. Since its acquisition of Cruise Automation for $ 1 billion in early 2016, GM has been focusing on the introduction of autonomous vehicles in the hope of gaining a foothold in this emerging field.


However, the competition in the area of autopilot has always been fierce. In order to gain first mover advantage, "new forces" rivals such as Waymo and Uber have injected billions of dollars.


Today, more and more people in the industry are aware that self-driving taxi service will be the main purpose of autonomous driving vehicles in the future. General Chief Executive Mary Barra said that autonomous vehicles and shared transportation will add to GM's core business. Dan-Oman is more specific: life-long revenue for a self-driving car could eventually reach "hundreds of thousands of dollars," compared to an average sales price of just under $ 30,000 for GM's models.


Chuck Stevens, CFO, said automated taxi services "may be bigger and have a higher profit margin than our current core business." In addition, we have a pathway to reduce the cost of service by 40%. Reduce costs by less than $ 1 a mile by 2025, from 20% to 30% from around $ 2.5 today.


Affected by this, both traditional car makers and emerging technology companies are accelerating the deployment of the auto-driving taxi market. Last month General Motors said it will complete the deployment of autonomous vehicles in "a few quarters rather than years"; the company is currently operating in San Francisco, Arizona, Scottsdale, and Warren, Michigan, Test a third-generation self-driving vehicle based on Chevrolet Bolt and test it in New York next year.

Uber said it plans to acquire as many as 24,000 self-driving cars from Geely Automobile from a non-exclusive deal from 2019 to 2021.


Waymo, considered a leader in the autonomous driving industry, also announced a self-service taxi service earlier in the month that it expects to carry the first passengers in the coming months, though no broader Time frame of the deployment.


Source: I love tram network

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