Self-driving cars are the future of transportation. Many companies are investing heavily in all related technologies, and it is only a matter of time before autonomous driving and driverless cars become mainstream.
So, who will be the target market for self-driving cars? Who will benefit most from this new set of technologies?
In this article, we will answer these questions by focusing on the reasons why people and businesses may turn away from human-driven cars to computer-driven cars and how they could benefit from such a transition.
Stay tuned!
Who is the Target Market for Self-Driving Cars?
To understand who benefits most from self-driving cars we need to focus on people and businesses that are most encumbered by the current situation of humans driving cars and ask ourselves whether they would gain anything by replacing the human driver with a computer.
Such a benefits analysis gives us the following main segments of the target market for self-driving cars:
- People who drive long distances on highways
- People with disabilities
- People who do not have a driver’s license
- Businesses with large fleets of vehicles
- Car share businesses like Uber and Lyft
- New businesses that bring a store to the consumer
Let’s look closely at each of these market segments.
1. People who drive long distances on highways
Long-distance driving is one of the most common use cases for self-driving cars. In theory, a self-driving car could drive autonomously for the entire journey while the driver sleeps, watches a movie, or works on their laptop.
This would be a huge benefit for people who have to travel long distances regularly as they would be able to make better use of their time.
In addition, self-driving cars would also be able to drive for longer periods without getting tired, meaning that journeys could be completed in shorter timeframes.
2. People with disabilities
Self-driving cars would provide a new level of independence for people with disabilities who are currently unable to drive. For many people with disabilities, being able to get around without depending on other people would be a game-changer.
In addition, self-driving cars could be equipped with features to make them more accessible such as wheelchair ramps and lifts.
3. People who do not have a driver’s license
There are many people who do not have a driver’s license for a variety of reasons. Self-driving cars would provide them with a new level of mobility and freedom.
Sometimes people without a driver’s license live in downtown areas of large cities, where parking can be a challenge. In such cases, they don’t need to own a self-driving car. Instead, they could be a part of a carpool arrangement where they can “order” a self-driving car on demand when they need it.
4. Businesses with large fleets of vehicles
Self-driving cars could have a significant impact on businesses that operate large fleets of vehicles such as taxi and trucking companies.
For taxi companies, self-driving cars could mean lower costs as they would no longer need to pay drivers. In addition, self-driving cars could be available 24/7 which would mean higher levels of service for customers.
For trucking companies, self-driving trucks could mean even lower costs as the vehicles can be operated for longer hours without requiring a driver to take breaks. This could also lead to faster delivery times as the truck can be driven for longer periods without stopping.
Similarly, car rental companies will also offer self-driving cars so that all people, not just those with valid driver’s licenses or insurance can rent cars.
Most automobile accidents are caused by human error and so self-driving cars are expected to cause fewer accidents. This could mean that insurance costs on self-driving rental cars could be lower than those on cars driven by humans. We’ll have to wait and see how this pans out.
5. Car share businesses like Uber and Lyft
Self-driving cars could have a major impact on car-sharing businesses such as Uber and Lyft as such companies could have their own fleet of cars instead of relying on cars owned by their drivers.
Self-driving cars will also allow them to operate in parts of the country where there aren’t enough drivers signing up for their service.
In addition, self-driving cars could be cheaper to operate than traditional cars which would mean lower fares for customers.
6. New businesses that bring a store to the consumer
Self-driving cars could enable new business models where products and stores are brought directly to the consumer. For example, a self-driving car could be sent to the consumer’s location to deliver groceries or take-out food.
This would be a convenient way for consumers to get what they need without having to leave their homes.
For example, the company Robomart has grocery stores in driverless vans that you can order to come to you wherever you are.
As you can see, there are many different segments of the target market for self-driving cars. Each segment has its own unique needs and benefits that can be met by self-driving cars.
Conclusion
The main target market for self-driving cars includes people who drive a lot and would rather do something more productive with their time or people who are unable to drive for different reasons and could benefit from getting a ride from time to time.
This includes people who drive long distances on highways or drive a large number of hours each day.
The market also includes people who cannot drive either because they have a disability that prevents them from being able to drive or simply because they do not have a driver’s license.
Businesses with large fleets of vehicles can cut costs by using self-driving cars as can car-share businesses like Uber and Lyft.
Finally, self-driving cars will spawn new businesses with business models that we haven’t seen before. One such business model is where you can order an entire store to come to you, rather than you going to a store to get what you want.
As you can see businesses and consumers alike stand to benefit from the introduction of self-driving cars. It will be interesting to see how the target market for self-driving cars develops and evolves over time.