Companies That Are Under Threat from Driverless Cars
The big investors in the technology world are focusing their energy on the concept of autonomous vehicles, which could bring a significant shift in the next twenty years. The idea of driverless cars could become a reality faster than we imagined. If this becomes a reality, it will be one of the highest innovations in the technology world ever seen. Technological industries and automotive companies will rake in huge revenue, but this will, on the other hand, affect some companies survival. Many organs of the economy will have to acclimatize to the development or will vanish. However, there are some which will be greatly affected.
This advancement will greatly affect the insurance sector. 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. It is therefore after determining the safety of the vehicles with time that people will not have to use motor insurance. Financial income for motor insurance companies and car accidents lawyers will be lost.
Career drivers will bear the effect of the invention. In fact, this has already been announced by the CEO of Uber that, should the technology be available, all the drivers will be replaced with automation. With this becoming a reality, the demand for professional drivers will go down which will affect all types of drivers from, truckers to taxi drivers, ambulance drivers and anyone else who does it for a living. With this innovation, companies will have the ability to monitor their fleets and increase efficiency while minimizing the expenses. Humans, however, will operate this technology but will slowly get phased out and retain the minimum number possible.
The realization of this innovation will influence the hotel industry negatively. Over the past few years, this industry has been affected, and this doesn’t look any better. Individuals on a driving journey will rest in a motel for a night after getting tired. The hotel sector has benefitted a lot from for many years from this habit of people. Use of hotels for resting overnight will diminish with the launching of the autonomous vehicles. Owners of the cars will opt to sleep in their vehicles instead. This will save them money and time which is a very valuable commodity.
The airline business will also be among those that loses income. This is mainly for the airlines that have particularized with domestic flights. Individuals will go for the domestic planes to avoid wasting time on the road and getting exhausted. A traveler that uses a driverless car is guaranteed of a safe journey, and thus they also have enough time to prepare for meetings.