Here's another vision of the future - gradually everyone's cars become self-driving, and now cars are more accessible to a wider range of people. 30% of the population currently can't drive due to age or disability, but if cars drive themselves the elderly, disabled, and even children can now own and operate vehicles. And now you have 30% more cars on an already congested road system. That should be enough to make traffic jams the norm everywhere.
But in case that wasn't bad enough, consider this - now people can do other things while they travel, because they don't have to be driving. So, in turn, they can live further and further away from their workplaces in cheaper, larger houses and do more of their work on the go. And while they do this they're spending more time on the roads, and - you guessed it - causing more congestion.
And because parking will always be expensive and hard to find in busy city centers, people will set their cars to loiter while they visit, rather than parking. Just going round and round while their owners shop. Causing - you guessed it - even more congestion.
TL;DR - the most likely result of autonomous vehicles is out of control congestion.
In what way would self driving cars incentivize not owning your own car?
That cost will almost certainly come down, but at the moment it is cheaper to just pay a human to drive a car with $0 of AV hardware.
But the main point is: if there is no need to compete in price, companies won't do it. There is no other company offering driverless rides and even if Google were to have huge margins on every ride, they wouldn't lower prices.
Happens all the time that companies literally just choose to not compete in price because people don't have options or just have accepted a specific price level.
A driverless car can very easily do things and make money while I'm waiting for it.
In some scenarios, people rent out their owned cars during the day to avoid this massive opportunity cost, but I doubt that will be the most efficient model.
In what other asset class ever has it made sense for the capital owners to be an extremely long tail of people, rather than a large corporate owner? Especially something as high velocity and fungible as cars.
Taxis/uber etc. are all built as "regular cards". It requires at least 2 people in there. How often is actually more than 1 person in a car? Wasn't that like 2/3 of all drives?
Now let's assume we have specialized cars for just a single person - that saves a lot of material, fuel, and also (parking) space.
But that only works if you don't OWN the car, because if you own it, you might sometimes have to have passengers right? So you always get a big car that is not needed in 2/3 or so of the drives.
That aside, having another driver is annoying for various reasons (e.g. privacy).
I'd sell my cars in a heartbeat if "Uber minus the driver" existed and was cheaper than owning a car.
...no.