Autonomy subscriptions are how things are going to go, I called this a long time ago. It makes too much sense in terms of continuous development and operations/support to not have a subscription -- and subscriptions will likely double as insurance at some point in the future (once the car is driving itself 100% of the time, and liability is always with the self driving stack anyway).
Of course, people won't like this, I'm not exactly enthused either, but the alternative would be a corporation constantly providing -- for free -- updates and even support if your car gets into an accident or stuck. That doesn't really make sense from a business perspective.
> the alternative would be a corporation constantly providing -- for free -- updates and even support if your car gets into an accident or stuck.
That's one alternative.
Another alternative would be that you get what you get at purchase time, and you have to buy a new car to get the newest update.
"Continuous development" isn't always a selling point when it's something with your life in its hands. A great example is Tesla. There are plenty of people who are thrilled with the continuous updates and changes to everything, and there are plenty of people that mock Tesla for it. Both groups are large markets that will have companies cater to them.
Let's be real. A staggering amount of drivers are incapable to switch on Automatic Cruise Control or trigger automatic parking. They know how to start the car, how to switch lights and wipers on/off and that's about it.
Paying subscription for something what they are never going to use is going to be a hard sell.
> a corporation constantly providing -- for free -- updates and even support
Corporations could decide to only advertise shipped features, not beta tests.
The other possible future is you rent the car for exactly when you need it and don’t pay a monthly bill— or your monthly bill pays for a certain number of rides/minutes/miles per month. In which case the subscription costs are managed by the provider, who might be the manufacturer and might not.
At least in cities, a fully-functioning, on-demand autonomous fleet would probably be superior to car ownership in just about every way except as a status symbol.
> Autonomy subscriptions are how things are going to go
In America, maybe. Chinese manufacturers are already treating self driving as table stakes. If I have a choice between a subscription car and one that just works, I’m buying the latter.
> continuous development and operations/support
ICE vehicles require continuous servicing and manufacturer support.
Apple products are good counter examples to your point. The cost of the basic software and OS w/ updates is included in the hardware
Why would I own my own car in this scenario (vs paying one of the autonomous driving companies to send a car my way when I need one)?
yeah but what if comma.ai or something cannibalizes this with open source tech?
Uber charges like $100 per hour the customers. I feel once we reach autonomy this will be the baseline.
Subscriptions are how things are going to go in general. This is just one example of the larger trend. Companies find it very annoying that they have to keep coming up with ways to provide new value in order to keep getting money from people.
Some car companies are already trying out subscriptions for stuff that requires zero ongoing support, like seat heaters. Outside of cars, so much software is switching to subscriptions, whether or not it makes sense. The software for my security cameras has become completely infested by ads, but you can pay for a subscription to make them go away. I own the cameras outright, but not really, since the software needed to use them is basically rented, either with cash or with my eyeballs. Most paid apps I come across these days want a monthly fee to keep using it, they're not content to just sell me a copy.
Imagine having a vehicle with +680 hp (or 1000 hp in case of Rivian quad) and then drive it autonomously... sigh where's the fun in that?
Eh they are offering a one time payment for autonomy for $2500 which is equal to 4.1 years of paying $50/mo.
It's not a unreasonable cost for development but also maintenance of the self driving system.
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Agreed, it seems inevitable that autonomy and insurance are going to be bundled.
1. Courts are finding Tesla partially liable for collisions, so they've already got some of the downsides of insurance (aka the payout) without the upside (the premium).
2. Waymo data shows a significant injury reduction rate. If it's true and not manipulated data, it's natural for the car companies to want to capture some of this upside.
3. It just seems like a much easier sell. I wouldn't pay $100/month for self-driving, but $150 a month for self-driving + insurance? That's more than I currently pay for insurance, but not a lot more. And I've got relatively cheap insurance: charging $250/month for insurance + self-driving will be cheaper than what some people pay for just insurance alone.
I don't think we need to hit 100% self-driving for the bundled insurance to be viable. 90% self-driving should still have a substantially lower accident rate if the Waymo data is accurate and extends.