Earlier quoted context omitted.
Robotaxis should roughly drop the cost of “Uber’s” to 1/3. Currently Uber only collects 25% of the fair for itself. The rest is for the human driving. Robotaxis can also be used 24/7 so better capital utilization on the initial investment for the car. Maintenance costs reduce with scale (+in house mechanics to improve margins). Maintenance costs reduce with electric drive trains. Maintenance costs reduce with better…
Remember that Uber doesn’t make money. And they pay their drivers less than the driver is losing to depreciation. Also, the robot isn’t free. Software isn’t free — it’s really expensive actually. All of the cost savings that you describe also don’t require a robotaxi to realize. The cost per trip of my wife’s Nissan Leaf is about 60% of the SUV. Even the durability can be addressed by buying a Toyota or Honda vs a Je…
This is the part we are disconnected on. It is the hardest part to guess about.
If the accounting works out like an airline, I agree with you that costs will remain high and will not change transportation significantly.
However, unlike an airline, the variable cost per ride is low. The way I see it, the economics will work out more like a data center (relative to an airline). Which is something Wall St does reward.