Its simply too costly to get the optimal size cab to a customer today. So cabs are usually much bigger than the average car. Flexibility is more important. A

Its simply too costly to get the optimal size cab to a customer today. So cabs are usually much bigger than the average car. Flexibility is more important. And cabs make up a small percentage of the overall market. And most of the cost of a cab ride is labor. But if automated cabs become the norm, the cost of a cab ride will be governed by the size of the vehicle. And if a car costs 25 cents a mile to operate, a cab ride from my house to San Francisco will still cost me $11. If a 1-seater with barely an engine and no trunk can do it for 10 cents a mile or $4.50, there will be demand. That's the commuter, the guy making 40 trips a month, who'd save $260 a month for giving up empty space. Of course, we really don't know how this will all play out. But it will be fun to find out.