Sharing Economy In Automobile Industry

966 Words4 Pages
Automobile industry is seeing a possible disruption right now. With big players coming into the foray and new business models being developed and experimented for this industry, it is poised to be transformed into a dimension. Sharing Economy in the Automobiles With the advent of Uber, Lyft, Ola, Didi, the industry is witnessing a shift from an economy where the automobile was owned by the consumer to an economy where the automobile is shared by the consumer. The sharing economy works on the model that the customer orders for the automobile when he requires it and releases it once he has reached his desired location or destination. This leads to a more efficient use of the automobile as it is said that on an average a personal automobile…show more content…
Apple is speculated to create cars which have the OS of apple and are available for rent, these cars will be self driving and will take the customer to the required location. Once the car drops off the customer the automobile will return to its automobile warehouse. This leads to a more sophisticated business model where the usage of car is tabulated and monitored for better…show more content…
These cars will be void of drivers and the technology system present inside it will guide the automobile to the destination. With companies like Google, Uber experimenting with this concept it is visible that this idea has potential. There are self driving cars run by these companies on the roads of California on an experimental basis. Even Tesla has an auto-pilot which drives their cars if the driver leaves it to the auto-pilot system. Self driving cars are promoted by these companies to be more safe as ninety percent of automobile accidents happen due to human error. Thus, self driving cars will eliminate the human element, making the journey by the automobile much safer. There is also the fact that a self driving car would be more economically feasible as the costs of hiring a driver will be eliminated and investing in technology would be far cheaper considering the scale at which the technology will be deployed. Thus, to cut costs and possibly make the cars accessible to more people due to cheaper rates, this will aid the cause. The model of self driving cars is in it infancy stage and governments are looking at devising rules to regulate it. The United States government is looking at ways in which they can regulate and allow the growth of this industry. The issues they face is whom to be held responsible in case of any mishap- the company owning the car, the company whose software is being used.
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