What will Automated Cars Mean for the Future of eCommerce?

The idea of automated transportation has existed for years, but what was once a futuristic vision is quickly turning into modern reality. Technology titans all across the world race to perfect an AI voyager that can function in many different environments and perform many different tasks. Robotic technology is improving daily and it is expanding into almost every vertical of society. Many strides have been taken revolving around automatic transportation. By just 2020 forecasts predict that over 10 million autonomous vehicles will be on the road. As Americans become more knowledgeable of the many benefits of autonomous vehicles they will become increasingly comfortable with the idea of being driven by a machine.
Society may benefit by safer driving conditions, enriched ride sharing services, accident prevention, and decreased personal liability. Many opportunities exist through automation and eCommerce companies, technologies, brands and platforms will bear many fruits if they implement said technology correctly. All of the following facets of the eCommerce ecosystem may be affected by the installation of self-driving cars everywhere.

Delivery

Delivery shipping speeds could drastically improve as automated vehicles are implemented into the process. Current restrictions exist to keep truck drivers from driving more than 11 hours in one sitting. These drivers are also paid an hourly wage that accounts for 75% of shipping costs. An automated truck could alleviate and eliminate both of these concerns. Trucking companies could have the machines on the roads for 24 hours a day and save costs for not having to pay a driver. These wins for trucking companies could turn into a victory for consumers as shipping times and prices will be reduced for their enjoyment.
 

Drone Replacement

Quite recently it seemed that drones would be used by retailers to make deliveries more efficient. However, FAA regulations have halted that idea which in turn shifts the focus on to self-driving to provide the same service. Reports state that Google is planning on implementing driver less cars to provide same day delivery similar to Amazon. Google is not the only company testing robotic cars to use for delivery. Uber has opened up a facility in Pittsburgh dedicated to building this technology. This technology will be quite practical for medium to large corporations that want to compete with Amazon on shipping speed and price.

Flexibility

According to the U.S. Census Bureau, the average travel to work time is just over 25 minutes. If people were to able to have the ability to travel to work via automated navigation this would open up a substantial amount of their day to be used for more useful things such as working, sleeping, eating, or browsing the web. This equates to over 200 years of time spent traveling annually. This increased web browsing time could open up increased chance for eCommerce stores to boost revenues and increase conversions.

Errands

A major downside of modern automobiles is how much down time is involved with owning a vehicle. Most cars are used to travel to and from work and to do errands. The rest of the time, the cars sit in a driveway or garage and are not being productive. Self-driving cars could open up so much avenues of freedom for those that own them. After driving its owner to work, an autonomous car could go grocery shopping, take the kids to school, get itself a car wash, or any other errand that increases your day’s productivity rather than sitting in the office parking lot all day. Self driving cars can act as an extension of the family or as a hired employee. It may be like having a full time driver to pick up, drop off, or check in anywhere.
This will co-align with the rise of eCommerce as more purchasing will be done online as users will be less likely to run errands. This “errand” time can be allocated to online shopping that can either be delivered via the company’s autonomous car or picked up locally by the newest family employee. In either case, efficiency is increased as the owners can spend their time on more relevant activities.
 

Barriers

There are some challenges that still exist for an entire rollout of automated cars everywhere. These barriers can be overcome but they will take time, money, and much effort.

Pricing

Predictions state that by 2028, the added functionality of automated navigation will increase the sticker price of a car by nearly $10,000 and truck prices will see a spike of $23,500. These costs can be absorbed due to the increased opportunities the automated cars can provide. The pricing of these vehicles may be expensive in the beginning but over time the average consumer will have access to these technologies.

Trust

Many people fear the thought of robots driving vehicles they are in or even driving alongside them on the road. This fear will be eliminated over time as we see them installed into everyday life. Many autonomous features exist in automobiles today. Features like self-parking and brake assistance are semi-autonomous but people have been more than comfortable with them for years. Many people enjoy the activity of driving and also believe they would be better drivers than any machine. This attitude can change as certain report state that automated vehicles could reduce up to 90% of accidents. This research won’t be enough to convince most consumers but it is a start. Marketing efforts will need to be strong once prototypes are complete.

Government Regulations

The biggest entity standing in the way of self driving cars everywhere is the US government. Certain restrictions and regulations will be put into place and the length of these limitations is unknown. The National Highway Traffic Safety Administration has already started the process of creating guidelines for the technology and more than 20 states have introduced legislation. The NHTSA recently allocated $3.9 billion to move forward the development of self-driving cars and paving the road for the technology to be integrated within streets across the country. The safety of the technology will have to be proven extensively and distributed slowly. The government must ensure the new vehicles can function safely with vehicles operated by humans without a hitch. The government will need to plan how to handle accidents, insurance, and lawsuits. This will require much funding and resources to be spent in preparation. Taxes and fees may be attached to this technology to offset government costs. The government must fully get behind the automated car movement and focus funding and attention to its smooth and successful implementation into society.
 
After receiving government support, acceptance by the public, and more cost effective pricing, these autonomous vehicles hold the potential to reshape the world of eCommerce. More browsing time will be opened up for commuters. In turn, this time saved behind the wheel may translate into increased bottom lines for eCommerce retailers. Increased purchasing power and convenience for consumers will result in a sales boom. The future is now. Self driving vehicles are here to stay and will provide new ways in which we fulfill orders, transport products, and provide services in the eCommerce industry.