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There are two “buzz sectors” that have been grabbing a lot of attention in the media in the last few years: Ride sharing services, and autonomous cars.
We’ve been dreaming and talking about autonomous cars for decades. But its only in the last decade that technology finally reached a point where building one became feasible. One of the nice things in technology is that it takes the simple concept of economics of scale to a whole new dimension. That is, once something becomes feasible to make – at a considerably elevated cost initially – Moore’s “law” starts to really kick in and it becomes a downhill race to the bottom from there.
A decade ago, it literally took a Google to pull up the intellect and research and development effort to build an autonomous car. Sure, the DARPA challenge has been there for years before, with many teams from numerous research and academic institutions participating from around the world; but it was Google, with its deep pockets and ability to tap into vast intellects in its worker pool that managed to really crack the nut.
Once Google demonstrated it was feasible, all it took was Moore’s law – the doubling of computational power every 18-24 months – and compounding over a decade. Today every car maker, major or otherwise, is working on an autonomous car. GM, Ford, Toyota, Nissan, VW, Mercedes and BMW, and even Chinese makers like BYD have an autonomous car program in full swing.
Today, the question is not whether we’ll have such cars. That horse has been beaten to death now. The question has become when we, consumers, will be able to buy one? Estimates vary between 5-10 years. The focus today has shifted from solving the technological challenge to figuring the necessary legal and liability framework of how to operate those cars. And when you reach this stage, you know change IS coming.
The second buzz sector that has been garnering a lot of attention lately is ride sharing services. Like most new things, it’s a culmination of other technologies that made this possible; namely, the proliferation of smartphones, GPS, and mobile internet connectivity. The disruption here stems from its challenge to the conventional ride sharing establishment, taxis. Ride sharing services like Uber and Lyft not only offer transport to people who need it, they also offer the flexibility to would be drivers to work at their own leisure, using their own car, and for the most part setting their own fare. But where ride sharing really has a leg up is convenience and forcing the quality of the service substantially up compared to traditional taxis. An Uber user can see what other people thought of that driver and his service. Under this model, no one can survive providing average service. Excellent becomes the new “average”, for anything other than that simply becomes unacceptable.
What will happen when autonomous cars become a commodity in a connected world where individual transportation is only a few screen taps away?
The biggest cost in operating a taxi, or ride sharing service, is not the car, nor its fuel, nor its cost of maintenance. It’s the collection of organs, flesh and bones sitting behind the steering wheel. If that is taken out of the equation, even a top of the line luxury car becomes cheap to operate as a taxi, or taxi like service.
And this brings me to my next question: why would most people buy a car, when they can for the same if not lower monthly expense, summon a much better ride to take them anywhere they want, with the added convenience of not having to worry about parking space (and its associated cost in most large cities) nor the legal expenses and liabilities associated with owning and operating this car?
Which in turn brings me to that next next-big-thing I alluded at in the title: This consolidated autonomous personal transportation service sector is where, IMO, we’ll see the next big disruption in society. I doubt we’ll see companies like Uber and Lyft dominate this new sector. The only thing they bring to the table is convenience, once you take out the service quality of the extinct driver in an autonomous car. There is no competitive advantage in convenience. Anyone can replicate that.
In such a world, car companies stand to gain the most if they chose to enter this market. People like brands, and like to be associated with a brand. Design, quality and consistency are not easy to replicate. Scaling up in order to compete by driving costs down will require substantially greater efficiency in resource allocation, utilization, and cost control; factors that are not easy to replicate or imitate.
Car companies stand in a unique place today in that they already have the infrastructure and experience to operate such large scale services. In fact, we already have the seeds of such a service in manufacturers that provide long term car leasing and renting services to consumers. Barring incompetency and lack of imagination, it’s not much of a stretch from there to providing distance-metered ride on demand autonomous services.
In memory of the good days back home in Baghdad…
Any Joost users who are willing to share an invitation to Joost with me?
If you don’t have Joost, but would still like to join, leave a comment here. Once I get in, and get some beta invitations, I’ll start giving them away to anyone who registers and leaves a comment.
عيدٌ بأيّةِ حالٍ عُدتَ يا عيدُ
|عيدٌ بأيّةِ حالٍ عُدتَ يا عيدُ||بمَا مَضَى أمْ لأمْرٍ فيكَ تجْديدُ|
|أمّا الأحِبّةُ فالبَيْداءُ دونَهُمُ||فَلَيتَ دونَكَ بِيداً دونَهَا بِيدُ|
|لم يَترُكِ الدّهْرُ مِنْ قَلبي وَلا كبدي||شَيْئاً تُتَيّمُهُ عَينٌ وَلا جِيدُ|
|يا سَاقِيَيَّ أخَمْرٌ في كُؤوسكُما||أمْ في كُؤوسِكُمَا هَمٌّ وَتَسهيدُ؟|
|أصَخْرَةٌ أنَا، ما لي لا تُحَرّكُني||هَذِي المُدامُ وَلا هَذي الأغَارِيدُ|
|إذا أرَدْتُ كُمَيْتَ اللّوْنِ صَافِيَةً||وَجَدْتُهَا وَحَبيبُ النّفسِ مَفقُودُ|
C. S. Lewis once said:
Part of every misery is, so to speak, the misery’s shadow or reflection: the fact that you don’t merely suffer but have to keep on thinking about the fact that you suffer. I not only live each endless day in grief, but live each day thinking about living each day in grief.
This is a very accurate description of how I feel as I go through my day.
Today, is a very, very, very good day. In fact, its the best day I had in a very long time.
This Friday morning, the Airbus A380 made its first “non-staff” flight from Toulouse in southern France with about 200 journalists and media members on board as passengers, and some 48 tonnes of fuel for the one hour tour.
According to Richard, the plane was fitted in a 3-class configuration which enabled the plane to carry “only 519 passengers”!!! This is already more than what the venerable Boeing 747-400 “jumbo jet” can carry. Considering that the A380 is certified to carry 800 passengers when fitted entirely with economy class seats, the plane on Friday had only 65% of its seats capacity and 25% of its passenger.
Again, according to Richard, the plane was very quiet. One could barely hear the engine noise in the mics during the show, which while not an accurate measure of noise, is somewhat of a statement to how quiet the plane is.
I look forward to seeing this majestic monster enter service later this year. Heck, I’m even thinking of going on to Singapore for a weekend (Singapore Airlines the launch partner for the A380) just to see how it feels to be on board such a huge monster of a plane on a long haul trip.
Today, is going to be one of the longest, if not the longest ever, day in my life.
A very touching poem about Iraq, the Iraqi people, their suffering, and their future.
Wonder when, if ever, we will be able to call Baghdad home again…
Thanks to Yaarub for the heads up. Miss you guys…