Businesses at Risk from Driverless Cars
In the next twenty years, there could be a major change in the world owing to the idea of technological savvy of producing driverless cars. The notion of developing automated cars is achievable in less time than we thought. This will be a major advancement in the technological innovation that the world has ever witnessed. Whereas some industries will be hurt by this innovation, the automobile and technological establishments will gain a lot of profits from it. A lot of sectors in the country will be forced to adjust or peter out. Some of these will be impacted bigger.
The insurance industry stands to lose a lot in this invention. Driverless cars will become a reality to the consumers once it has been established that they are perfect regarding safety. Technological hitches cannot be tolerated unlike in human scenario since an accident from a technological system can be disastrous. There will not be a need to insure against motor vehicle accidents once the autonomous vehicles pass the safety test in due time. This will directly affect revenue for motor insurance companies who will record losses as well as lawyers who represent car accident victims.
The realization will also affect people who drive as a profession. The announcement has been done by Uber Chief Executive Officer about their plans to phase drivers for the automated cars, after its launching. Career drivers will be on a low demand once this is realized and will affect drivers across all fields such as for the trucks, ambulances, taxi and others. The advancement will make it easy for the industries to track their vehicles and improve their effectiveness. Humans, however, will operate this technology but will slowly get phased out and retain the minimum number possible.
Another sector that will feel the impact of this advancement is the hotel industry. Over the past few years, this industry has been affected, and this doesn’t look any better. In many cases, when people are driving, and they get tired, they seek a motel or a hotel to relax over the night. This has created heaps of profit for the hotel industry sector. When people start using driverless cars, they will be no need for resting in a motel or staying in a hotel room for the night. Owners of the cars will opt to sleep in their vehicles instead. They will spend less time and money in the process which is important.
The airline business will also be in line to lose revenue. This will mostly affect the airlines that specialize in domestic flights. People prefer domestic planes to cars because in a car you easily get tired when you are traveling. However, the autonomous cars will guarantee a user a peaceful less-disturbed journey and allow them to have enough time to prepare for their appointment.
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