Driverless cars will redefine public transportation  DEC 19 2011

In a short essay about The Unintended Effects of Driverless Cars (like the kind being tested by Google), Koushik Dutta guesses at what they might mean for the future of transportation.

Currently, a car spends 96% of its time idle. Compare that with planes which spend almost their entire lifetime in operation/airborne. Idle planes aren't making money, and they need to recoup their hefty $120M price tag. There is an unforgiving economic incentive to make sure it is always in use.

The proliferation of driverless cars will have a similar effect. Cars will spend less time idle: why would a household buy 2 (or even 3) cars, when they only need 1? Ride to work, then send the car home to your spouse. Need to go grocery shopping, but your kid also needs a ride to a soccer game? No problem, a driverless car can handle that.

Most people don't need cars most of the time but pay for the convenience of having one nearby when they do. Schedule-able on-demand driverless cars could eliminate that need, with the added bonus of expanding effortlessly to fit current capacity (e.g. imagine a family of four needing to go in four different directions at four different times...just schedule four Hertz Driverless pickups from your phone). Of course, people said similarish things about the Segway...

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