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Q2 How Can New Hardware Affect Competitive Strategies? 123
After work the family goes shopping and is dropped off curbside at the store. No need to
park anymore. It’s safer too. While shopping, Dad gets a message from his college-aged daugh-
ter that she needs the car sent to pick her up from the airport. Dad’s glad he won’t have to drive
all the way out there.
Dad remembers when he had to drive himself. It was a long and painful process. Now the
car plans the route for him, fills itself up with gas, communicates with intersections so he never
gets a red light, and reroutes itself if there’s an accident or traffic. Most importantly, he doesn’t
get mad at other drivers. Traveling is just easier now.
Later the family plans a vacation to a distant locale. Taking the self-driving car is the way
to go. No airport security lines, family members don’t have to get frisked by overzealous TSA
agents, they get comfortable seats that face each other, they don’t have to pay for their bags, and
they don’t have to rent a car when they get there. Plus, they can leave anytime they like.
Sometimes it’s nice to leave for vacation at night and sleep while you’re “driving.” Driving
isn’t bad when you don’t actually drive.
Self-driving Cars Make Things Cheaper
You’ve seen how a self-driving car can make your life easier. But what about cost? Will it be more
expensive or less expensive than the car you have now?
Self-driving cars will probably be much less expensive over time than your current car.
Early adopters will pay a premium when self-driving cars first hit the market, but that’s true of
most new products.
Cost savings will show up in several ways. In the above scenario, you may have noticed that
the family had only one car. Self-driving cars will be used more effectively than cars are used
now. Most cars sit dormant for 22 hours a day. Sharing a self-driving car could eliminate the
need to have multiple cars. That’s a big cost savings.
You’ll see more cost savings because a self-driving car will drive better than you. You’ll save
on fuel because it will drive more efficiently (less braking, revving the engine, and street racing!).
You will avoid costly traffic tickets, parking tickets, and DUI citations.
Your car insurance will drop dramatically. It may be so low that you won’t even need it
anymore. Your car will have crash avoidance systems that apply the brakes before you even see
a problem. It will be able to know the exact locations, velocities, and routes of all cars within the
vicinity. Automobile accidents may become a thing of the past.
Self-driving Cars Will Make Things Safer
Yes, you read that right—safer. Currently 90 percent of motor vehicle crashes are caused by
12
human error. Motor vehicle crashes are the leading cause of death for people ages 3 to 33.
Spending time driving may be the most dangerous thing you do all day.
Your car will be able to see better than you, react more quickly than you, and have better
information about your driving environment. It will be able to communicate with other cars
around it, dynamically analyze traffic patterns, avoid construction sites, and contact emergency
services if needed.
Self-driving cars will mean safer driving, fewer accidents, fewer drunk drivers, fewer road-
rage incidents, and fewer auto–pedestrian accidents. Cars will be able to go faster with fewer
accidents. In the future, manual driving may be a risky and expensive hobby.
Self-driving Cars Will Disrupt Businesses
Self-driving cars have the potential to disrupt well-established industries. Self-driving cars may
mean fewer cars on the road. Fewer cars on the road may mean fewer cars sold (transportation),
12 Network of Employers for Traffic Safety, “10 Facts Employers Must Know,” accessed May 22, 2014, http://
trafficsafety.org/safety/fleet-safety/10-facts-employers-must-know.