This is somewhat of a nightmare scenario for city governments due to the properties of induced demand. A rolling fleet of self driving cars eliminates many of

This is somewhat of a nightmare scenario for city governments due to the properties of induced demand. A rolling fleet of self driving cars eliminates many of the deterrents to driving. No parking, storage, and insurance costs and one doesn't even need a license. Elimination of all these costs could significantly incentivize people to choose driving as their primary form of transportation, which would significantly increase vehicle traffic and all the associated costs and problems that come along with that.