Companies That Are Under Threat from Driverless Cars

In the next twenty years, there could be a major change in the world owing to the idea of technological savvy of producing driverless cars. The concept of autonomous vehicles could be materialized sooner than we thought. The realization of this will be a major progression in technological expansion ever known to man. While technology and automotive companies stand to reap huge profit from the advancement; there are a number of industries whose survival will be under threat of collapse. A lot of sectors in the country will be forced to adjust or peter out. However, there are some which will be greatly affected.

The insurance industry stands to lose a lot in this invention. Implementation of the vehicles without drivers will be determined by their safety. Technological hitches cannot be tolerated unlike in human scenario since an accident from a technological system can be disastrous. It is therefore after determining the safety of the vehicles with time that people will not have to use motor insurance. Financial income for motor insurance companies and car accidents lawyers will be lost.

The professional driver will most likely be affected by the innovation. The announcement has been done by Uber Chief Executive Officer about their plans to phase drivers for the automated cars, after its launching. With this becoming a reality, the demand for professional drivers will go down which will affect all types of drivers from, truckers to taxi drivers, ambulance drivers and anyone else who does it for a living. This is because this type of technology will allow companies to manage their fleets and enhance efficiency with reduced costs. Humans, however, will operate this technology but will slowly get phased out and retain the minimum number possible.

The realization of this innovation will influence the hotel industry negatively. This industry has gone through some difficult situations, and this will only make the matters worse. People will most of the time relax in a hotel after getting tired from driving for long. This has created heaps of profit for the hotel industry sector. However, with driverless cars, people won`t have to stop over just one night or step into a motel when they get tired when driving from place to another. Travellers will rather stay in the vehicles throughout the night for the night. Spending time in the cars without moving to hotels will avoid money and time wastage.

The airline business will also be in line to lose revenue. This is especially for the airlines that deal with local flights. People normally use airplanes to fly domestically so as to save on time spent on the road and to get tired. A traveler that uses a driverless car is guaranteed of a safe journey, and thus they also have enough time to prepare for meetings.