Chunka Mui, over at Forbes, begins a new series where he considers Google’s driverless car. He begins with a surprising fact:
In fact, the driverless car has broad implications for society, for the economy and for individual businesses. Just in the U.S., the car puts up for grab some $2 trillion a year in revenue and even more market cap. It creates business opportunities that dwarf Google’s current search-based business and unleashes existential challenges to market leaders across numerous industries, including car makers, auto insurers, energy companies and others that share in car-related revenue.
The rest of the first installment gives a rundown of the broad changes we can expect with driverless car technology:
Google is claiming its car could save almost 30,000 lives each year on U.S. highways and prevent nearly 2 million additional injuries. Google claims it can reduce accident-related expenses by at least $400 billion a year in the U.S. Even if Google is way off—and I don’t believe it is—the improvement in safety will be startling.
In addition, the driverless car would reduce wasted commute time and energy by relieving congestion and allowing cars to go faster, operate closer together and choose more effective routes. One study estimated that traffic congestion wasted 4.8 billion hours and 1.9 billion gallons of fuel a year for urban Americans. That translates to $101 billion in lost productivity and added fuel costs.