Autonomous Vehicles
How will the business models change with autonomous vehicles & systems?
Hello! I work for a generative AI venture studio and partner with entrepreneurs and leaders around the world. My recent interests are AI, fintech, e-commerce, and software. Feel free to reach out to me at yuto-saeki@garage.co.jp for collaboration opportunities.
In recent years, autonomous applications have emerged as a groundbreaking advancement in technology, expected to revolutionize various aspects of our lives. These systems, powered by artificial intelligence (AI), are designed to perform tasks without human intervention, making them crucial in fields ranging from transportation to healthcare. Here we will focus on and explore some AI autonomous systems for vehicles, and discuss what the future holds.
The autonomous vehicle (AV) industry is experiencing remarkable progress, with significant advancements and substantial investments. The market size for AVs reached $158.3 billion in 2023, and it is projected to grow exponentially to $2.3 trillion by 2032. Key players in the sector have secured substantial funding, indicating strong investor confidence in the industry's potential.
Let’s explore the potential impact of fully autonomous vehicles to the business models. As we redefine value propositions across various industries, business models themselves are expected to undergo significant transformations. Here are specific examples:
Changes in Value Propositions: For instance, companies providing autonomous agricultural machinery will shift from offering highly productive "machines" to providing advanced production activities using collected data alongside the machinery. This shift means that data-driven, efficient agricultural "solutions" will become the new value proposition. Additionally, for platforms like Uber, which currently emphasize driver transparency and safety as value propositions, the introduction of autonomous vehicles will shift the focus to the technical accuracy and reliability of the vehicles themselves as the new value propositions.
Changes in Key Partners and Resources: To support these new value propositions, the structure of in-house resources and partnerships must also evolve. For example, Uber sold its self-driving technology subsidiary, ATG, to Aurora Innovation in 2020 and withdrew from in-house development. However, a search on LinkedIn for "Uber Autonomous Mobility and Delivery" reveals a diverse array of personnel with backgrounds in autonomous driving and delivery businesses. This includes product managers, business development, operations, and legal professionals who play crucial roles in solution development and distribution. Uber is also actively forming partnerships and making investments with companies possessing autonomous driving technology, such as leading the Series B for autonomous truck technology company Waabi
Partners of Uber Autonomous Mobility (Uber) Changes in Sales and Marketing Methods: If Walmart, traditionally reliant on in-store sales, invests in autonomous delivery, its sales methods will evolve. The energy previously spent on training in-store sales staff, creating manuals, and arranging products will shift towards designing the UX/UI of delivery apps, ensuring technical reliability in delivery processes, and enhancing the customer experience post-delivery. Similarly, when hospitals adopt autonomous ambulances or pharmacies employ autonomous delivery of medical supplies, it becomes crucial to determine the division of tasks between humans and machines and to communicate safety assurances to customers.
Autonomous vehicles are revolutionizing business operations across various sectors by enhancing efficiency, reducing costs, and improving safety. From logistics and public transit to agriculture and healthcare, the deployment of AVs is paving the way for a more automated and connected future. As technology advances, we can expect even broader and more innovative applications of autonomous vehicles in business operations.
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