Autonomous Driving Means Big Bucks for Everyone

18 June 2015 Dashboard Insights Blog

New insights from McKinsey & Company demonstrate one common theme: the more autonomous vehicles take over the world, the more money saved and the more revenue earned by almost everyone. McKinsey interviewed over 30 industry experts around the world and came up with Ten Ways Autonomous Driving Could Redefine the Automotive World. Interestingly, they are all cash positive.

How will we all make money? Here is just a partial list according to McKinsey:

  • Labor cost savings. These are already being seen in mining and farming applications today. In those areas, autonomous vehicles can work in closed, private environments without the general safety concerns of the open road. As McKinsey notes, look for construction and warehousing sectors to adopt next.
  • Uber has disrupted the taxi business. Investors just might salivate at the chance to back a similar company – with no concerns about drivers at all.
  • Auto insurance may be totally different. If everyone owns an autonomous vehicle, traditional coverage for liability for accidents will no longer need to be a primary concern. Manufacturers of autonomous vehicles though will need significantly more coverage. Who bears this cost, and who gets the cost savings on insurance will be an interesting question.
  • Supply chain logistics will surely be more efficient with autonomous vehicles. This will also lead to flexibility, which surely will lead to cost savings.
  • Productivity. What is your commute time? Do you drive? For all people that drive to/from work, autonomous vehicles will free up substantial time during the day. During this time, more work can be done. Of course, for those who do not work, digital media revenues could explode as people seek ever more entertainment on their phones. How much time? McKinsey put the global number of saved commuting time at over one billion (billion!) hours. One billion hours of work, or, watching cat videos.
  • Decreased accidents = decreased costs. McKinsey cites that roadway crashes cost the US economy $212 billion in 2012. Cutting that even in half is a huge savings.

Autonomous vehicles are coming. Their impact is still speculative. But there is no doubt that when they do finally arrive, one generation will suddenly find itself thinking that the idea of driving your own car is impossible to fathom.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services