INNOVATION & PAYMENTS: Tesla entering the autonomous vehicle "space race" does not bring us closer to a Utopian future, yet

It's difficult to ignore the utopian dream of riding shotgun in a fully autonomous vehicle whilst chuckling at the seemingly prehistoric ideas of road rage, congestion, and side-mirrors. Yet, upstarts dedicated to making this dream a reality ingest massive amounts of venture funding with little return. Take transportation-on-demand app Uber -- who recently raised $1 billion for its Advanced Technologies Group (ATG) from Softbank, Toyota, and auto-parts manufacturer Denso (here). The aim of the investment is to accelerate the development and commercialization of automated ridesharing services, especially given that the company blames the bulk of its estimated $702 million net loss this quarter on costs attributed to human drivers (here). Question is, how sophisticated the software has become since the 2018 incident in which a driverless Uber vehicle struck and killed a pedestrian? Interestingly, Alphabet-backed and Uber-rival Waymo, boasts racking up over 10 million miles worth of autonomous driving data as a hedge against such fatal incidents. Up until last week, Waymo prided itself as the only upstart to have launched a dedicated commercial driverless car service (Waymo One). Enter electric-vehicle giant Tesla -- who promised an all-electric, 1 million car fleet of self driving Tesla taxis by the end of 2020. Some, of which, will come from existing Tesla's on the road -- which will be used as autonomous taxis when their owners do not need them. This is noteworthy because Tesla has amassed over 1 billion miles worth of 'Autopilot' data, which was used to build their latest custom-designed artificial intelligence driving chip -- claimed to allow Tesla's to pilot themselves. The only missing pieces to the puzzle are (1) regulatory approval for such vehicles to legally operate and (2) "feature-complete" software to prevent any life-threatening incidents, both of which are assured to be ready for 2020 year end launch. 

Whilst there's no doubt that we have a "space race" type scenario between digital transportation upstarts: Waymo, Uber, and now Tesla -- all competing to arbitrage a phone's GPS to deliver custom mobility solutions with greater precision and experience than a human transaction can. There is concern around the impact that autonomous taxis will have on the existing infrastructure, especially what they will do in-between customers: park, go home, or drive around aimlessly. All of these have significant congestion implications. Such implications could incentivise upstarts aimed at offering an aggregated view of transportation options available to customers, such as CityMapper -- whose latest subscription offer 'Pass' -- exemplifies how to take this one step further by building an instantiated financial product on top of abstracted digital infrastructure (here). Until then we will continue to dream.

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Source: BusinessWire (Uber's Advanced Technologies Group $1 billion), Waymo, Techcrunch (Tesla Ridesharing App), Techcrunch (Uber vs. Tesla), Gizmodo (Citymapper Pass)