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Do cars need a driver? What about the ‘Robotaxi’?. Elon musk, CEO, co-founder and product architect of Tesla announced at the company’s ‘Autonomous day’ for investors, to launch a self-driving ride sharing service by 2020. Musk emphasized a tesla owner can add or subtract their cars to the tesla network, making it a ‘Robotaxi’. Hence, a ‘Robotaxi’ can fundamentally be any tesla vehicle with autonomous driving functionality. Tesla looks to challenge major competitors such as Uber and Lyft. Which bring us to the question, what is tesla’s ride sharing services bringing to the market?

Tesla’s ride sharing services seeks to give opportunity to tesla owners to earn revenue, with the company’s 20 to 30 percent share, while engaged in other activities. According to study by Harvard health watch, an average person drives 1.6 hours a day. A self-driving car can drive 56 hours a week as opposed to the average 10 to 12 hours, generating more revenue than manually driven cars. The cost of riding a ‘Robotaxi’ will be $0.18, making cost cheaper than the current $2 to $3 dollars cost of ride sharing services. Reducing cost increases the quantity demand of the service, also increasing profit.

The company seeks to provide cars to areas with high demand and low quantity. With current ride sharing services, the absence of the driver means the unavailability of the car for transport. Places with inadequate supply of ride sharing services and high demand renders missing opportunity for both the consumer and the service providers. ‘Robotaxis’ prevent problems of the human resource from affecting service provision. Due to the low cost and availability of the tesla ride sharing service, demand will increase, causing the decrease in the need for drivers.

Increase in demand of a tesla self-driving service will basically lead to the increase in supply of tesla electric cars. Cheap to run and maintain, less pollution and improvement in safety are some of the advantages of electric cars. The design of the tesla autopilot is dedicated to using sensors to identify objects, reducing the risk of accidents. Most automobile companies will avert to production of self-driving upon high demand.

Would you trust a human or organized algorithm?

“Suppose your Tesla drives you to work, drops you at the front door, embarks on a full day of autonomous ride-hailing, and picks you up when you are ready to leave. By adding your vehicle to Tesla’s autonomous fleet, you may be able to earn enough money to cover your entire lease payment and earn income. “Apple analyst, Gene Munster stated.

The advantage of the ‘Robotaxi’ outweighs the disadvantages. The Innovative idea behind the autonomous shared driving services is something that will forever change the future of ride sharing services and Tesla. The future with Tesla’s ride sharing services is one to look forward to.