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> I am not so sure. Think of the potential value to be unlocked: It will radically change the way real estate is planned. If cars drive themselves, you can swit

by paulmd 5y ago

> I am not so sure. Think of the potential value to be unlocked: It will radically change the way real estate is planned. If cars drive themselves, you can switch over to a "Car on demand" model for most current vehicle owners. Why would you need to waste space on parking lots, single garages etc. You also unlock the ability for more people to live further away from work. none of that value accrues to the people who make self-driving cars though (or their investors). It's not like if waymo gets rid of your car for you, they get your parking spot or garage. It's a huge social benefit but investors are looking for return-on-investment, not making a multibillion loss to improve society.

twofornone 5y ago
Like any service that provides value to individuals, people will pay the makers of self driving cars for the convenience.
nebula8804 5y ago
Maybe I didn't word it properly. I discussed the value gained as well as how the advent of self driving will transform existing stores of value like parking spaces. In this case: the value is captured by the car rental company (which will likely be the car manufacturers themselves). Part of the value comes from the rent that the parking space would have extracted. >It's a huge social benefit but investors are looking for return-on-investment, not making a multibillion loss to improve society. Its hard to predict how much value they can gain unless we have more information but I'd imagine if the majority of cars become on demand, then there has to be at least a few billions of dollars in potential value. In regards to if people will actually take up rental: Since everyone else is moving to a rental model today(streaming services vs owning, cell phone "refresh" contracts, potential apple offering a monthly subscription that always gets you a new phone, car companies offering all included monthly car subscription) by the time this thing rolls out it is plausible that there will be high uptake on a rental model.

by paulmd 5y ago

twofornone 5y ago

Like any service that provides value to individuals, people will pay the makers of self driving cars for the convenience.

nebula8804 5y ago

Maybe I didn't word it properly. I discussed the value gained as well as how the advent of self driving will transform existing stores of value like parking spaces. In this case: the value is captured by the car rental company (which will likely be the car manufacturers themselves). Part of the value comes from the rent that the parking space would have extracted. >It's a huge social benefit but investors are looking for return-on-investment, not making a multibillion loss to improve society. Its hard to predict how much value they can gain unless we have more information but I'd imagine if the majority of cars become on demand, then there has to be at least a few billions of dollars in potential value. In regards to if people will actually take up rental: Since everyone else is moving to a rental model today(streaming services vs owning, cell phone "refresh" contracts, potential apple offering a monthly subscription that always gets you a new phone, car companies offering all included monthly car subscription) by the time this thing rolls out it is plausible that there will be high uptake on a rental model.