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> If the barriers to entry are low because you can buy self-driving software off-the-shelf for $20,000 then profits will be low In the beginning. Then due to
by nixos 10y ago
> If the barriers to entry are low because you can buy self-driving software off-the-shelf for $20,000 then profits will be low
In the beginning. Then due to economy of scale (and government regulations), it will be controlled by two huge companies, owning all IP, making any inroads close to impossible.
Think of when the newest major computer manufacturer was founded.
- afarrell 10y agoWell wait no. If it is the case that anyone can buy off-the-shelf software for self-driving cars for a price of $20,000, then a person could just buy a rig, fit it out, develop a relationship with a set of farmers or whatever, and be in business. How would one of the conglomerates stop that besides competing on price or erecting regulatory barriers?
- nixos 10y agoBecause he's going to buy it for $20,000. The conglomerate can sell it for $15,000. Who's going to buy it from him. It's a commodity market (so little "customizing" benefit), crazy IP with feedback loop (Google and Tesla have more street data than anyone else, so they can perfect their algorithms. As their algorithms are better than anyone else's, people buy there hardware, which gives them more data, ad infinitum. Breaking into such a market will be getting harder and harder for that reason), and quite likely some kind of (strict but bureaucratic) safety regulation.
- afarrell 10y agoer "it", is the software to run your own autonomous vehicles. It is the hypothetical cost of capital. If it is widely available, then people can sell transit services to other businesses.