The dream of the truly driverless car is officially dead
Look beyond the headlines and you'll find human overlords watch from afar over purportedly automated systems businessinsider.com/driverless-car…
Lyft's quest for driverless cars is over
The company recently announced the sale of its self-driving unit to the auto giant Toyota
The move isn't surprising
Despite hefty investment, Lyft's driverless utopia, like many others, remains more fiction than fact
It wasn't supposed to be like this
In 2016 Lyft President John Zimmer predicted that driverless cars would "account for the majority of Lyft rides within five years"
By 2025, Zimmer reasoned, "private car ownership will all but end in major US cities"
Such reasoning was largely rooted in "techno-optimism": a belief that machines are superior to humans in terms of servitude
Sensors and software, after all, don't complain, don't tire, and don't demand pay hikes — or salaries at all, for that matter
This trifecta is purportedly a surefire way to lift profits — hence the tech-centric spending spree on all things autonomous
Ride-hailing companies have burnt millions over the years on perfecting the technology
Yet, autonomous does not mean humanless
In "Our Robots, Ourselves: Robotics and the Myths of Autonomy," the historian David Mindell explained why
"There are no fully autonomous systems"
"The machine that operates entirely independently of human direction is a useless machine. Only a rock is truly autonomous"
Put another way, the type of automation that ride-hailing companies are betting on to boost earnings doesn't exist
It never has
And if it did, humans would still play a role
The reason ?
Machines — much like humans — can't be trusted to get it right all the time, every time
Take what is arguably the longest-serving piece of automation today: the airplane autopilot
First introduced in 1912, the system is designed to balance an airplane so human pilots don't have to
The result is a smoother, safer ride for passengers
But as we know, there have been hiccups
In 1985, a jetliner flying for China Airlines nearly crashed after the autopilot failed to inform the crew about an imminent loss of control — a dangerous condition that can cause a crash
Because of such oversights, autopilot use today is contingent on human supervision
This also explains why driverless cars remain, after years of development, not so driverless after all
Look beyond the headlines and you'll find human overlords watch from afar over purportedly automated systems
Customer-support staff are also on hand to answer rider queries
- such as "What if I want to change my destination during the trip ?"
And then there's an armada of pricey engineers standing ready to solve vexing road problems, like what to do when a lane is blocked by double-parked cars, orange traffic cones, or the occasional taco truck
All this human capital means more, not less, expense; bloated, not pared down, balance sheets
And that's problematic for an industry that has struggled to turn a profit
In 2019 alone, ride-hailing companies lost more than $10 billion, their financial statements being described as, "a hemorrhaging fountain of red ink with no path to profitability"
Company execs had hoped self-driving investments would provide relief
The available evidence suggests otherwise
It's time we see the driverless dream for what it is :
- a Disneyland-style spectacle that can't "live up to its sci-fi imaginings, a series of very expensive and glitzy pilot projects that can't cut it in the real world"
Driverless technology might, on its best days, be astounding, but those days have been few and far between
Self-driving algorithms might — given the frequency of human folly — make intuitive sense, but intuition isn't always right
Earlier this year, the UK government suggested that driverless cars could soon hit the A10, a major road in England that connects London to various cities to its north
"We're on the cusp of a driving revolution," noted Transport Minister Rachel Maclean
But turning that revolution into reality demands a guarantee of technological perfection – a guarantee that few if any driverless tech developers can give
Until that happens, expect human drivers to stick around
Axel Springer, Insider's parent company, is an investor in Uber
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Germany's car industry association VDA is at loggerheads with its most important member, the Volkswagen Group
On the surface, it's about membership fees, but in fact it's about everything for the VDA wiwo.de/unternehmen/au…
The dispute is remarkable
VDA versus Volkswagen
Germany's car industry association against Germany's largest car company
The VDA wants to increase the contributions from its members, Volkswagen does not want to go along
VW, however, is not concerned with money but with principle :
VW boss Herbert Diess does not see why he should throw money at an association which, from VW's point of view, is useless and sometimes even damaging to its business
The Blue line on this chart gives us a very simple way to think of the economics of the Tesla Model 3 :
Market Price = €20,000 + €100 x Power in kW
- and note that this number INCLUDES Tariffs and Delivery Charges
Clearly this is just an observed empirical outcome
- but we can impute various things from it
1. The launch of production at Giga Grünheide should allow Tesla to reduce prices by more than 10% just from the elimination of Tariffs and reduction of Delivery Charges
2. This could imply a revised formula for an equivalent European-made vehicle, before counting any other savings :