Companies That Are Under Threat from Driverless Cars
Major stakeholders in the world of technology are putting their energies on the idea of having cars which are automated, and this could be a changer twenty years to come. The idea of driverless cars could become a reality faster than we imagined. If this becomes a reality, it will be one of the highest innovations in the technology world ever seen. While technology and automotive companies stand to reap huge profit from the advancement; there are a number of industries whose survival will be under threat of collapse. It will be a situation of adaptation or become extinct for so many sectors. Some of these will be impacted bigger.
One of the industries to be affected by this will be the insurance industry. Implementation of the vehicles without drivers will be determined by their safety. Errors in technology cannot be allowed unlike in cases where human error is allowed since a possible tragedy in a technological hitch can be massive. It is therefore after determining the safety of the vehicles with time that people will not have to use motor insurance. This will directly affect revenue for motor insurance companies who will record losses as well as lawyers who represent car accident victims.
The realization will also affect people who drive as a profession. In fact, this has already been announced by the CEO of Uber that, should the technology be available, all the drivers will be replaced with automation. With this becoming a reality, the demand for professional drivers will go down which will affect all types of drivers from, truckers to taxi drivers, ambulance drivers and anyone else who does it for a living. The advancement will make it easy for the industries to track their vehicles and improve their effectiveness. Humans, however, will operate this technology but will slowly get phased out and retain the minimum number possible.
The realization of this innovation will influence the hotel industry negatively. This industry has gone through some difficult situations, and this will only make the matters worse. Individuals on a driving journey will rest in a motel for a night after getting tired. This has created a lot of revenue for the hotel industry over the years. When people start using driverless cars, they will be no need for resting in a motel or staying in a hotel room for the night. Individuals driving the cars will prefer to spend the night in the cars sleeping. This will save them money and time which is a very valuable commodity.
The airline business will also be among those that loses income. This is especially for the airlines that deal with local flights. People prefer domestic planes to cars because in a car you easily get tired when you are traveling. Nevertheless, the autonomous car provides a traveler with a peaceful journey where they are less disturbed, and they can have ample time to get ready for their meeting.