Self driving vehicles: a disruption in the making VIII

A study in the US is showing that the ones most at risk of losing their driver’s job are truck drivers, with taxi drivers coming in as second. Credit: Goldman Sachs

An important impact of autonomous vehicles is in the area of jobs. Although new jobs will become available to manage the radically different environment, the amount of jobs that will be lost because of the fading need for a driver will be very high. Along with the loss of “drivers” jobs there will be loss of jobs in advertisement of vehicles, only marginally compensated by the advertisment of Mobility as a Service, related Services and Pods, loss of jobs in the insurance market, in the management of infrastructures and vehicles (both will be simpler to maintain), of road police, in vehicles manufacturing (fewer vehicles, each with fewer components, hence impacting the whole value chain)….

The first signs will be felt in long haul goods transport, trucking, followed by taxi drivers. In the next decade the expectation is to see a loss of 25,000 jobs a month in the US (with truck drivers being hit most in the first part of the next decade). That means 300,000 jobs lost per year just in the US with a total of 4.5 million jobs fading away in the coming 15 years in the US.

Manufacturing of vehicles is likely to feel the heat starting in the second half of the next decade, although real impact will not occur before 2030 and beyond with full impact taking place in the 2040-2050 period as combustion engines will be fading out.

As in several technology disrupton we are likely to see a snowball pattern, slow in the beginning, then ramping up and once a thresholds is reached an avalanche. In this area that will happen when the ownership of car will be no more cost effective: it does not happen when newer forms of transportation get cheaper but when scrapping the old ones for the new ones becomes advantageous. Clearly that will first happen in the business sectors (like taki, trucking) but eventually it will happen in the mass market with private vehicles.

In this latter, an important factor will be the time for a cultural changing, moving from ownersip to use of a service. This is a huge step, from a cultural point of view, as individuals are very much tied to the idea of ownership.
Yet, we have seen the success (although in niches) of multiproperty vacation clubs, shared ownership, and similar proposition where the “seller” is leveraging on the lower cost plus the ownership feeling (even though there is no longer a real ownership, just the access to a service). This might be a business model that in some cases may take root in some niches, like providing refined transportation (sold like travel in style, in luxury pods). It will remain to be seen since in the Mobility as a Service volume is crucial and creation of niches may not go hand in hand with reaching the required economy of scale.

About Roberto Saracco

Roberto Saracco fell in love with technology and its implications long time ago. His background is in math and computer science. Until April 2017 he led the EIT Digital Italian Node and then was head of the Industrial Doctoral School of EIT Digital up to September 2018. Previously, up to December 2011 he was the Director of the Telecom Italia Future Centre in Venice, looking at the interplay of technology evolution, economics and society. At the turn of the century he led a World Bank-Infodev project to stimulate entrepreneurship in Latin America. He is a senior member of IEEE where he leads the New Initiative Committee and co-chairs the Digital Reality Initiative. He is a member of the IEEE in 2050 Ad Hoc Committee. He teaches a Master course on Technology Forecasting and Market impact at the University of Trento. He has published over 100 papers in journals and magazines and 14 books.