As robotaxi services begin to spread across America, ride-hailing drivers could worry that they'll be pushed aside in favor of robots — or at least that their incomes will shrink.
Why it matters: Like manufacturing, retailing and other industries, transportation is a prime target for automation.
Reality check: Cashiers aren't going away, and neither are factory workers or Uber drivers.
- Rather, they will collaborate with robots for the near future.
Driving the news: Uber and Lyft are beginning to introduce robotaxi services as an available choice for rides in certain urban areas, alongside Waymo, which has already established itself in San Francisco, Los Angeles, and Phoenix.
- Initially, these robotaxis will be restricted to specific areas and will run exclusively under favorable circumstances.
- However, these tools will assist Uber and Lyft in managing their networks more effectively, particularly during times of high demand when pricing frequently spikes.
- Over time, with technological advancements and decreasing expenses, robotaxis might result in lower fare prices for passengers as well.
By the numbers: Uber dominates approximately 75% of the U.S. ride-hailing market, leaving the remaining share for Lyft.
- Pilots on both networks make around $23 an hour, as reported by Gridwise Analytics, a company that gathers driver information to monitor the gig economy.
- Uber drivers make approximately $513 weekly, whereas Lyft drivers bring in around $318.
Where it stands: As of now, the introduction of robotaxis in cities like San Francisco, Los Angeles, and Phoenix has not significantly impacted ride-hailing drivers, according to findings from Gridwise.
- "Drivers continue to operate at their usual speed, receive identical rewards, and make just as many trips as they did previously," states co-founder and CEO Ryan Green to Massima.
The big picture: The hassles and costs of owning a car in urban areas have fueled the growth of ride-hailing platforms, especially among younger people.
- That growth is expected to accelerate sharply over the next 15 years, as more people turn to ride-hailing for their daily commutes instead of just occasional use, say forecasters at S&P Global Mobility.
- "Mario Franjicevic, a lead researcher from the company, explains to Massima that Generation Z and Generation Alpha possess distinct mindsets regarding mobility," he says.
- They don't possess CDs or vinyl records. They also don’t have DVDs. Instead, they subscribe to services like Netflix and Spotify. Similarly, owning a car isn’t considered a mark of prestige for them when it comes to transportation options.
- By 2040, S&P Global Mobility forecasts that there will be approximately 15 billion annual ride-hailing trips in the U.S., an increase from 3.6 billion rides expected in 2024.
The intrigue: Approximately half of these journeys will take place in autonomous taxis, with the remaining half being operated manually by drivers.
Between the lines: Jeremy Bird, who serves as the executive vice president of driver experience at Lyft, outlined three stages of the shift towards autonomous taxis in a recent discussion. blog post .
- Adoption: Robotaxis remain an uncommon sight. They haven’t reached a number sufficient for meeting all of a city’s transport demands, plus they have limitations when it comes to specific weather situations or road types. (This reflects our current status.)
- Hybrid network: Certain riders might opt for robotaxis, yet others will continue favoring a human driver for additional support or high-end service.
- Lyft-ready network: Anybody's self-driving vehicle can be utilized within the ridesharing system to earn money whenever it’s idle. Business-savvy drivers might operate a whole fleet of autonomous taxis through Lyft.
The bottom line: The market for ride-hailing services continues to expand, and autonomous vehicles won't dominate it entirely.
Catch up on the top news stories of the day with MassimaDaily Essentials.