Welcome!

Artificial Intelligence Authors: Yeshim Deniz, Zakia Bouachraoui, Pat Romanski, Elizabeth White, Jason Bloomberg

Related Topics: @ThingsExpo, Mobile IoT, @DXWorldExpo

@ThingsExpo: Blog Feed Post

It’s the Sharing, Stupid! | @ThingsExpo #IoT #M2M #SmartCities

We live in a world where you can press a button and request a self-driving car, what will change when fleet cars are autonomous?

“Self-driving cars are the future of ride-sharing,” proclaimed an industry expert who shall remain nameless. The comment struck me as ridiculous. From my point of view, Uber (and all car services) already provide self-driving cars. You don’t drive the car; the driver does. Do you really care whether the car is controlled by a human/machine partnership or it’s an autonomous mechanical device? Other than to acknowledge that you are the person the car is supposed to pick up, you don’t need to speak to the human driver any more than you would need to speak to the natural language–understanding algorithm that would request the same confirmation if the vehicle were autonomous. Should you decide to change your destination, your driver will ask you to enter the new address via the app, so talking is completely optional.

Anyway, if we already live in a world where you can press a button and request a self-driving car, what will really change when fleet cars are autonomous?

It’s the Economy, Stupid!
Cost per mile is an obvious differentiator between a human-driven livery car and an autonomous livery car. While fees vary widely, as of this writing, ride-sharing trips in and around New York City cost approximately $2 per mile. Uber charges drivers 20 percent (other services charge as low as 5 percent and as much as 30 percent). So there’s roughly $1.60 per mile left for the Uber driver. Out of that $1.60, the driver must pay for the car, insurance, maintenance, and gas. Let’s round up the IRS standard deduction of 53.5 cents per mile to 60 cents per mile to offset the cost of the car, insurance, maintenance, and gas. That puts the average cost of the driver at approximately $1 per mile.

Averaging most industry estimates, a $40,000 electric autonomous or hybrid ride-sharing fleet vehicle will cost approximately 20 cents per mile to operate. It doesn’t take much in the way of math skills to understand the industry’s desire to eliminate human drivers.

As I have previously written, there are many other benefits to autonomous vehicles including safety, but here I’d like to focus on the financial incentives that may accelerate the trend toward sharing.

It’s Happened Many Times in Many Ways
Music was once distributed for purchase on plastic disks that cost consumers $20. It is now distributed via sharing services that cost consumers fractions of a penny per stream. The same thing happened with DVDs and video. Some will argue that the music business has dealt with the shift in its economic model, but it has not. It is a business in transition. Clearly the video distribution business is about to similarly transform. No one knows how long it will take, but the customer journey will certainly fully transition from an ownership model (where you own your own copy of an asset with limited rights for usage) to an access model (where you pay for access to use the asset on demand under a similar limited rights grant).

When $40,000 Cars Cost 40 Cents and $400,000 Houses Cost $40
There is no reason to believe that anyone will be able to stop or even slow down either the arrival of a ubiquitous sharing economy or its close cousin, the on-demand economy. That said, the sequencing of this transition and its speed are not well understood. I’ve heard good arguments that predict fully autonomous urban areas by 2030 and others that say it won’t happen until 2050 or even later. But trying to time any market is a fool’s errand. Since we know that these paradigm shifts are within our technological reach, the question of timing should take a back seat to the opportunities presented by the known outcomes.

Every business can easily identify several areas where something that was once capital and resource intensive such as providing a virtually unlimited supply of potable water, creating a private data center, or generating electricity is going to ultimately transition to a simple (possibly commoditized) line-item expense such as a monthly invoice for water, power, or cloud computing.

How will you invest in this very probable future? Where will you place your bets? How will you think about which business functions and processes require internal investments, and which are so obvious and useful that outside vendors will ultimately emerge? These are questions that should be considered daily. I welcome your thoughts and opinions.

Other Articles You May Enjoy

Chipping People: Are You Ready?

ICOs: What You Need to Know

CMOs Shouldn’t Buy Tech, Ever!

How Do You See the Future?

The Five Jobs Robots Will Take First

The Five Jobs Robots Will Take Last

Just How Dangerous Is Alexa?

I’d Pay You $500,000 a Year, but You Can’t Do the Work

Machine Learning & AI: When to Start?

Artificial Intelligence: 5 Things Every CEO Should Know

The post It’s the Sharing, Stupid! originally appeared here on Shelly Palmer

Read the original blog entry...

More Stories By Shelly Palmer

Shelly Palmer is the host of Fox Television’s "Shelly Palmer Digital Living" television show about living and working in a digital world. He is Fox 5′s (WNYW-TV New York) Tech Expert and the host of United Stations Radio Network’s, MediaBytes, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment.

IoT & Smart Cities Stories
Early Bird Registration Discount Expires on August 31, 2018 Conference Registration Link ▸ HERE. Pick from all 200 sessions in all 10 tracks, plus 22 Keynotes & General Sessions! Lunch is served two days. EXPIRES AUGUST 31, 2018. Ticket prices: ($1,295-Aug 31) ($1,495-Oct 31) ($1,995-Nov 12) ($2,500-Walk-in)
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...