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Average earnings (after expenses) of a ride share driver is very roughly $10/hour. If you assume a self-driving car can get 2000 hours of use a year (which seem
by fshbbdssbbgdd 4y ago
Average earnings (after expenses) of a ride share driver is very roughly $10/hour. If you assume a self-driving car can get 2000 hours of use a year (which seems reasonably conservative), then the self-driving car saves $20k in labor costs per year. Although self-driving tech will be expensive in the beginning, the price will likely at some point decline to be far below $20k/year.
Labor is about half of the cost of a hired ride. We know this is true for Uber because there is a lot of public discussion about the budget of a rideshare driver. Not sure about taxis.
Given those premises and assumptions, a person who doesn’t want to drive would care about self-driving tech because it could eventually lower the cost of hiring a ride, potentially by 50%.
- cycomanic 4y agoBut price is said due to supply and demand not the cost of providing the service. So why do you think taxi fares will go down?
- fshbbdssbbgdd 4y agoBecause labor is half of supply, in this case.
- freejazz 4y agoStill has no bearing on why they would or wouldn't take taxis now.