The adoption of self-driving technology has reached a tipping point.
GM’s Cruise and AutoX recently received the green light to launch self-driving robotaxi fleets to consumers in parts of the United States and China, respectively.
Other companies have received permits to remove human drivers from their test vehicles and are not far behind.
There couldn’t be a better time for a new era of transportation.
With many consumers working from home, the value proposition for owning a personal car is becoming weaker. Less driving means owning a car is more expensive on a per-mile basis.
A recent forecast from Ark Invest suggests robotaxis will offer the cheapest method of transportation.
The cost to travel in robotaxis is expected to be less than half that of a personal car and over 10 times cheaper than a traditional taxi ride.
(Source: Ark Invest.)
At scale, riding in robotaxis will be a no-brainer.
Mobility as a Service
The low cost of robotaxis is a reason they will be key contributors to the global adoption of mobility as a service (MaaS).
According to Research and Markets, the market for MaaS is expected to reach $1.8 trillion, one-fourth of the entire transportation industry, by 2028.
The MaaS market will get even bigger in the 2030s, when robotaxi adoption is expected to really take off.
According to Bloomberg, the fleet of robotaxis is expected to grow 6,300% between 2030 and 2040, from 334,000 to 21.3 million.
Robotaxis Have Big Shoes to Fill
With the $7.2 trillion transportation industry up for grabs, robotaxis have big shoes to fill.
This means investors who pick the right companies have the potential for huge gains.
And one company’s high-tech products could be in the majority of cars by the end of this decade. That means bigger profits for the company — and more money in investors’ pockets.
Analyst, Automatic Fortunes