Cathy Kargas’s view on driverless car featured on Canadian Insurance Top Broker

Speaking at the  Insurance 2024 forum in Toronto early last month, Catherine Kargas, vice-president of the market research firm Marcon, made executives think about the driverless car in ways no one has probably contemplated yet. Jeff Pearce of Canadian Insurance Top Broker magazine wrote an article summarizing her thinking on the subject. You can read the article “Horse-and-Buggy Thinking on Driverless Cars” on the de Canadian Insurance Top Broker Website at the following address. http://www.citopbroker.com/magazine-archives/horse-and-buggy-thinking-on-driverless-cars-7324

Off-road autonomous applications

Farming and mining are but two activities that are going “driverless”.

Farming and mining are but two activities that are going “driverless”.  Both present advantages of lower costs and increased productivity.

With declining demand and prices for numerous commodities, including iron ore, mining companies are turning to autonomous vehicle technologies to decrease costs. It is estimated that Rio Tinto is saving approximately one million $ annually with every autonomous vehicle in service.

Sharing boom

What a year it has been for Uber!

On the ride sharing front, what a year it has been for Uber! It is now available in 200 cities around the world, expanding into new services, including UberPool, and getting involved in pilot projects to test penetration in other areas including courrier.

Taxi companies are up in arms because of the impact of sharing on taxi business. In San Francisco, the taxi industry is claiming a 65% decline in revenues.taxi-cab-trips-dip

On the car sharing front, Canadian membership is growing at a frantic pace. Car2Go’s Calgary membership exceeded 65,000 – 2nd only to Vancouver!

And on the fleet side, the US government is entering into a 1-year pilot project in 4 cities to assess impact of replacing the entire fleet by car sharing.

Auto manufacturer nightmare: shared, driverless vehicles

If we moved to a system of shared driverless vehicles, we would eliminate 9 out of 10 cars.

University of Texas researchers published a report concluding that if we moved to a system of shared driverless vehicles, we would eliminate 9 out of 10 cars. While this is a hypothetical cab-like service based in Austin, Texas, it is not difficult to believe that such of a fleet of on-demand mobility services, ideally integrated within a multimodal system, could eliminate most cars on the road. Don’t forget, the average utilization rate of personally owned vehicles stands at about 4%.

If we eliminate our home expenses (don’t forget, your house is an investment that increases in value over time), the car is  often our greatest expense: very high for such a low utilization rate.

Photo: Alexandra Gl / Shutterstock.com