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Companies That Are Under Threat from Driverless Cars

Major stakeholders in the world of technology are putting their energies on the idea of having cars which are automated, and this could be a changer twenty years to come. The idea of driverless cars could become a reality faster than we imagined. This will be a major advancement in the technological innovation that the world has ever witnessed. Whereas some industries will be hurt by this innovation, the automobile and technological establishments will gain a lot of profits from it. A lot of sectors in the country will be forced to adjust or peter out. However, there are some which will be greatly affected.

This advancement will greatly affect the insurance sector. Implementation of the vehicles without drivers will be determined by their safety. There cannot be a window for error as opposed to the acceptance for human errors as this can cause catastrophic effects. There will not be a need to insure against motor vehicle accidents once the autonomous vehicles pass the safety test in due time. This will directly affect revenue for motor insurance companies who will record losses as well as lawyers who represent car accident victims.

The realization will also affect people who drive as a profession. The announcement has been done by Uber Chief Executive Officer about their plans to phase drivers for the automated cars, after its launching. With this becoming a reality, the demand for professional drivers will go down which will affect all types of drivers from, truckers to taxi drivers, ambulance drivers and anyone else who does it for a living. With this innovation, companies will have the ability to monitor their fleets and increase efficiency while minimizing the expenses. Humans, however, will operate this technology but will slowly get phased out and retain the minimum number possible.

Another sector that will feel the impact of this advancement is the hotel industry. The innovation will further add to the woes of this industry. Individuals on a driving journey will rest in a motel for a night after getting tired. This has created a lot of revenue for the hotel industry over the years. When people start using driverless cars, they will be no need for resting in a motel or staying in a hotel room for the night. Travellers will rather stay in the vehicles throughout the night for the night. Spending time in the cars without moving to hotels will avoid money and time wastage.

The airline business will also be in line to lose revenue. This is especially for the airlines that deal with local flights. Individuals will go for the domestic planes to avoid wasting time on the road and getting exhausted. A traveler that uses a driverless car is guaranteed of a safe journey, and thus they also have enough time to prepare for meetings.

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