Robotaxi – Technology Hits the Open Road
As someone who lived in Chicago for 25 years, I’ve taken my share of taxicabs. The total is easily in the thousands. Back in the day, you’d stand on a street corner and franticly wave for a passing taxi. The key was to look for a cab with a lighted “Taxi” sign atop the roof. If the sign wasn’t lit, it meant the taxi was already occupied or the driver was off duty. Standing in the cold, snow or rain could quickly turn into a miserable experience.
But then along came Uber and Lyft. Through a simple app on your cellphone, you can have a car sent directly to your location. You can even select your car preference, from small, to mid-size to an SUV. As you wait, you can stay indoors, free from the elements.
Whether it’s a taxi, Uber or Lyft, the process is pretty straightforward. The driver pulls up, you jump in the back seat, confirm your destination and off you go. But a new ride-sharing system is slowly gaining traction in the U.S. – the robotaxi.
A robotaxi, or driverless taxi, is a self-driving, autonomous car. It uses what’s called advanced driver assistance systems, or ADAS. Using a complex system of artificial intelligence, sensors, radar and cameras, ADAS fully automates acceleration, braking, steering, navigation and all the vehicle’s lights and signals. It detects and identifies traffic lanes and any traffic controls such as stoplights, stop signs, speed limits and construction signs. It also detects and identifies stationary and moving objects – such as other motorists, bicycles and pedestrians – and predicts their trajectories.
The robotaxi movement in the U.S. is being led by a company called Waymo. Based in Mountain View, CA., Waymo is a subsidiary of tech giant Alphabet, previously known as Google.
After several years of testing and pilot programs, in 2022, Waymo launched its robotaxi service to the general public in Phoenix. In 2023, it expanded into San Francisco and this year opened up service in Los Angeles. Waymo currently services about 150,000 paid rides per week across these three markets. Waymo is looking to expand its operations into Miami, Austin, Atlanta and Tokyo, Japan.
To begin using their robotaxi service, all you need to do is download their Waymo One app and create an account. Users of Waymo’s robotaxi cite the cost is comparable to that of Uber and Lyft.
Understandably, a key concern is safety. In 2023, Waymo claimed its robotaxis were involved in only three crashes that resulted in injury to passengers over the course of the 7.1 million miles its robotaxis had driven that year. Waymo claims the injuries were all minor. Based on similar data, Waymo contends that human-driven cars are four to seven times more likely to get into a crash that results in injury.
Critics, however, have reservations regarding the safety of autonomous vehicles operating in highly congested environments filled with numerous obstacles, erratic movements and unpredictable scenarios. They claim driving often requires complex decision-making based on human intuition, experience and social cues to interpret actual and potential movements in other drivers and pedestrians. They also cite concerns about an autonomous car’s ability to detect, and stay within, lane markings that might be covered in snow or other adverse weather conditions.
Currently, Waymo is the only company in the U.S. licensed to operate a commercial robotaxi service. But that may soon change as a number of competitors are set to test the waters in the upcoming years.
Jumping into the back seat of a driverless vehicle might take, as we say, a certain leap of faith. It requires a belief that all those microchips, circuits, sensors and other electronic devices will do exactly what they’re supposed to do at any given moment. For those who’ve experienced a robotaxi, it can be a thrilling, unique ride. But for others, that leap of faith might first need to be infused with a glass or two of bourbon.
Mark M. Grywacheski, Investment Advisor
Quad Cities Investment Group is a Registered Investment Adviser.
This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Quad Cities Investment Group and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Quad Cities Investment Group unless a client service agreement is in place
