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Hola,
Cars are weird once you think about them. Love them or hate them, the technology and the infrastructure built around them are just mind-bogglingly ubiquitous — and not so efficient:
- A couple of McKinsey consultants have figured that the typical American car spends only 2.6% of its time driving.
- Only 14% of the gas we pump into our cars is actually used to move people around (much is lost to engine inefficiencies, idling, etc.)
- The average American road only reaches top usage 2 or so hours a day. Most of the time, it’s empty space. Let’s not even talk about the planetary footprint of parking lots.
Think of how our time, spaces, and businesses will transform once AVs come to market (see This Week in Data below for news of Alibaba’s driverless car testing in California).
As we’ve written, it’s not just about the auto industry (big as that is at $4.1T, according to our Market Sizings database). It’s about radical transformations in retail, travel, real estate, etc. Timing is uncertain, sure, but the fact that the impact will be massive is not. |
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