Customers Prefer AutoTaxi Despite Higher Fees? Why & Would You Try Robotaxi?
Wall Street has high hopes for the commercialization of robotaxis. But is there really a market for self-driving cars? Let’s first look at how $Tesla Motors(TSLA)$ peer, $Alphabet(GOOG)$’s Waymo, is performing in San Francisco.
Waymo’s ride prices are 41% higher than $Lyft, Inc.(LYFT)$ and 31% higher than $Uber(UBER)$.
Yet in just two years, it achieved over 25% gross bookings market share in San Francisco, surpassing Lyft.
Why are users willing to accept the high price and the uncertainty of autonomous driving?
A recent survey asked Waymo users why they chose the service. The main reasons included:
No need to talk to a driver; Better vehicle quality; No tipping required
For non-US users, the first two reasons are especially appealing. In China, we don’t usually tip, but sometimes drivers insist on chatting, sometimes can be annoying. In summer, many cars also have unpleasant odors. More seriously, there can also be personal safety concerns.
But with autonomous cars, the real risk might just be traffic accidents. When you think about it, regular taxis also have accident risks. So, if it’s in a controlled trial area with manageable risk, I’d definitely want to try a self-driving taxi.
In fact, Tesla reportedly has a far lower accident rate than its peers. Bloomberg previously cited a figure based on accidents per million miles:
Tesla: 0.15; Waymo: 1.16; U.S. average: 3.90
However, this data hasn’t been officially confirmed. That’s why this week’s robotaxi test will be critical to watch.
Waymo’s operations prove that consumers are willing to pay more for robotaxis.
The higher prices are primarily due to high vehicle costs. But if Waymo can improve vehicle utilization (currently at 33% vs. Uber’s 55%), its business model could reach break-even. As autonomous driving tech improves, the cost may even drop below that of traditional ride-hailing apps.
Tesla’s robotaxi is expected to far surpass Waymo in terms of price, reliability, comfort, and entertainment system. It’s increasingly clear that Tesla is poised to revolutionize the transportation industry. Whether the stock continues to climb depends heavily on this week’s test results.
Would you want to try an autonomous taxi?
Beyond traffic accidents, could self-driving cars be vulnerable to hacking or data breaches?
Could autonomous driving, like ChatGPT, suddenly go mainstream overnight, becoming a widely adopted technology?
REWARDS
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No Small Talk required. No awkward "busy day" from the front seat. Just me, my playlist and a robot that doesn't judge my karaoke.
An autonomous taxi is smarter than your average driver as it is powered by AI that has been trained in miliions of miles of data. It doesn't text, tailgate or take questionable shortcuts because "Waze said so".
It is electric which means fewer emissions and more zen. Plus I can finally stop pretending that I know how to parallel park.
With 360 degrees sensors, radar and zero road rage, an autonomous taxi is built to avoid drama, unlike some humans I know.
I might clutch my handbag a little tighter the first time but the future is here and I don't want to miss the ride. If it offers mints and charges my phone, I will be a lifelong fan.
@Tiger_comments @Tiger_SG @TigerStars @CaptainTiger
hmmm... perhaps short distance, I'll try [Sly] [Sly] [Sly]
Would you want to try an autonomous taxi?
Beyond traffic accidents, could self-driving cars be vulnerable to hacking or data breaches?
Could autonomous driving, like ChatGPT, suddenly go mainstream overnight, becoming a widely adopted technology?
REWARDS
All valid comments will receive 5 Tiger Coins
Auto taxi, I forgot to remove my door key from my main door, can you U-turn fore😂😂😂
Like any other digital stuff, I think self-driving cars would be vulnerable to hacking and data breaches. That cannot be helped as some personal data needs to be collected in order to utilise the taxi. However, if the type of data collected is not sensitive eg just name, I wouldn’t be too worried.
I don’t think autonomous driving will go mainstream overnight like ChatGPT as there are more risks involved. When one’s life is concerned, I think most people would be more cautious. Also, not everyone has a habit of taking a taxi and not many own vehicles. Even if one already owns a vehicle, biting the next one is a big purchase that many would take seriously.