In a recent blog post, Paul Mampilly sees major changes coming to the automobile industry. Of course, he’s not alone. Most people have heard of driverless vehicles and services such as Uber and Lyft. But most people are not really preparing for the massive transformation that’s coming to the transportation industry.
To start off, Paul Mampilly details how most people discount the extremely high cost of owning a car. According to the Bureau of Transportation Statistics, on average people use their car just 4% a day. For that 4% of their day, people pay an average of $35,000 just to own the car. Of course, cars come with a lot of associated costs, such as: gas, oil, personal property taxes, insurance, parking fees, driver licenses, the expense of building garages and so on. People justify those costs because they use the car to get to work and for the personal convenience. The same study also found that 25% of people would be better off just paying for Uber or Lyft when they need to go somewhere.
Paul Mampilly points out 96% of the car industry would be unnecessary if the world used the supply of cars optimally. People would b better off financially just using a driverless car from Uber. This means the automobile industry is headed for a massive collapse. More about, visit here.
That goes against the trend. In 1900, the United States had 800 cars. By 1910, it was 458,500. By 1920, Americans owned 8.2 million cars. That’s heavy growth, and the automobile has become an intrinsic part of American culture. In 2016, Americans bought 17.55 million cars. That’s the seventh year in a row car sales have gone up. In his blog post, Mampilly says he told his son the boy would probably never need to know how to drive. That’s incredible to try to imagine, a whole generation of Americans who do not view getting a driver’s license as a rite of passage into adulthood.
The autonomous car division of Google/Alphabet, Waymo, is already testing new transportation systems. When cars are totally autonomous, the interior can be dramatically redesigned so people can eat, work or sleep while they’re riding.
Paul Mampilly writes the investment newsletter Profits Unlimited from Banyan Hill Publishing. He keeps his eye on the latest megatrends in technology and the rest of the world, then finds the companies that will most profit from these megatrends, and writes about them for his subscribers.
Paul Mampilly @ https://www.facebook.com/PaulMampillyGuru/