Robotaxis are coming up, but what are they?

A very interesting report was published by corporate survey group Lux Research this November. In The Economics of Robotaxis, Lux stated that the average cost of operating a robotaxi is much lower than human-driven taxi. However, those costs aren't low enough to displace traditional private cars. But what is this vehicle that is supposedly set to disrupt the conventional taxi and ride sharing spaces?  

What is the robotaxi?  
The robotaxi is a vehicle with a high degree of automation based on artificial intelligence (AI), garnered through deep learning (DL). These are electronically powered cars that are either ‘driverless’, i.e., driven entirely by robotic control from point to point, or require minimalistic human interference. The driverless cars are being tested with a back-up of teleoperators and drivers in safety vehicles trailing the test car. Riding a car that drives itself sounds like a science fiction movie, but it’s already true. Another variant has enough features to drive itself, but a human can take control any time, and keep in touch with the control centre on phone. Several companies in USA, UK and China are readying their robotaxi fleets. It will still take a few years, but according to the report, several companies are actually looking forward to managing regular robotaxi fleets within a decade!  

What is the most attractive feature of the robotaxi?  
Apart from design and the sheer thrill of moving in a driverless car, the single most attractive feature of the robotaxi is its operating cost. As we know through our experience of yellow taxis, Uber, Ola and other taxi services, two of the biggest cost factors are fuel and the driver. Petrol, diesel and all versions of auto fuel are expensive, and the cost is only slated to rise. Drivers are charging more too, given that costs of everything else have gone up.   

The report by Lux is so interesting because it contains an analysis by robotaxi companie son the cost factor. Costs include purchasing an electric car, fitting it with autonomous technology, installing and using electric vehicle charging infrastructure (charging points where cars of certain makes can stop and recharge), fleet maintenance, insurance, vehicle teleoperation and other incidental costs. According to the robotaxi companies, paying the driver of a normal taxi for one mile in USA is $ 2, and it’s $1 in China. But operating a robotaxi would cost 28 cents per mile in China and 42 cents in USA. The save is just incredible.