Urban mobility is poised to go through radical changes over the next two decades. Global energy transition and megatrends like rapid urbanization and economic growth have forced us to re-think the way we go from Point A to Point B. To tackle the twin challenges of congestion and climate change, cities strive to radically transform their transit systems. A key component of this transformation could be the widespread adoption of autonomously driven taxis or robot-taxis. Many organisations, including some of the largest mobility providers in the world, are in different stages of autonomous driving technology trials. Some have clocked over a million miles during the test phase. A couple of these companies have even committed towards rolling out robot-taxi fleets on a commercial scale over the next two to three years.
Changing policies due to global megatrends have created an ideal ecosystem in which robot-taxis could see widespread adoption
As cities and countries try to adhere to their climate change commitments, stricter regulations on internal combustion engine (ICE) vehicles will be rolled out across the board to control carbon emissions. Incentives for zero-emission vehicles, such as battery electric vehicles (BEVs) will come into play as come cities roll out complete bans on ICEs and restrict vehicular traffic from overtly congested sectors. This will pave the way for shared, zero-emission mobility options like autonomous taxis.
Technology and automotive companies invest heavily in software and solutions that will support the production of autonomous taxis. Some pilots are already well underway. Consumer behaviour is also shifting towards favouring the use of driverless taxis as more and more people are opting out of owning private vehicles. Ownership rates have seen a decline in some countries over the last two decades. Rapid urbanisation leading to people seeking more integrated modes of transport.
The automotive industry is adapting and moving into new business areas to reap the benefits of shared autonomous mobility
Automotive companies have begun to identify with transformation in the transportation sector. They are altering their business models, and looking at new ways to generate revenue. The companies have begun to slowly move away from mere product manufacturing. Their focus has shifted towards building technologies and creating new services for future transportation systems.
Mobility as a service has gathered a lot of interest. Many companies are focusing their efforts on building software that manages mobility networks and drives cars. Utilities have begun to see this transformation as an opportunity to utilise the potential of electrical vehicle fleets. Electric vehicle fleets can act as a flexible power source, capable of flattening demand peaks and reducing unnecessary infrastructural investments. The companies will also have a significant part to play in the provision of the charging infrastructure, that will power driverless taxis.
Greater collaboration will be the key to maximising the potential of driverless taxis
As robot-taxis gain greater momentum, new companies will enter the space in greater numbers. The success of these organisations could depend on their ability to form fruitful partnerships and business models that can sustain a high revenue stream in the long-term. Integrated solution providers have the potential to gain a competitive edge in this sector.
Utilities and other energy companies will also start to form partnerships within themselves and with mobility companies. These partnerships can create a charging infrastructure, smart energy networks and related revenue models, required to power the driverless vehicle fleet of the future. Cities will need to work with all the parties concerned, including mobility providers and utilities to create the landscape and policies required for robot-taxis. Automotive driverless technology can help cities provide clean, affordable and secure mobility to its inhabitants for the long term, while making a positive contribution to the fight against climate change.
