Benefits of Autonomous Driving
Autonomous driving is now proven to be viable and safe, so it's timely to consider the benefits.
Autonomous driving is at a critical inflection point.It is now proven and safe, and the new markets and business models are clarified. Waymo has surpassed 250,000 paid driverless rides per week, and Aurora has launched its autonomous long-haul trucking service. The competition is clearer, and some have abandoned development.
I recently updated this and much more in the latest April 2025 edition of my popular book, Autonomous Vehicles: Opportunities, Strategies, and Disruptions. To buy on Amazon.
In this article, I’ll summarize the benefits of autonomous driving.
The economic and social benefits of autonomous driving are so significant that the prevalence of autonomous vehicles is inevitable. While this may seem bold, a closer examination reveals the importance of these benefits. One of the most notable advantages is the potential to save up to 40,000 lives annually in the United States alone (and eventually half a million worldwide). Additionally, autonomous driving could prevent millions of serious injuries. Another advantage is the time saved for typical drivers, which could total 300 hours per year. This reclaimed time can be used for more productive or enjoyable activities than driving.
Transportation ranks among the highest expenses for families, and autonomous vehicles (AVs) could significantly alleviate this financial burden. Moreover, AVs promise enhanced mobility for children, older adults, and individuals with disabilities, offering them the freedom to travel independently, which is often restricted today.
Let's examine these benefits by category and estimate their magnitude.
AVs Can Almost Eliminate Auto Accidents
A major benefit of autonomous driving will be the near-elimination of car accidents. While we currently consider them inevitable, autonomous vehicles have the potential to reduce their frequency greatly. Let’s begin by examining how accidents occur and how AVs will address these situations.
According to the National Highway Traffic Safety Administration (NHTSA), driver error is responsible for 94% to 96% of all motor vehicle crashes in the United States, suggesting that most accidents can be prevented. Unlike human drivers, autonomous vehicles do not drive recklessly or make these mistakes.
Drunk driving accounts for nearly one-third of traffic deaths in the U.S., making it one of the leading causes of traffic fatalities.
Distracted driving contributes to approximately 9% of fatal crashes. As more individuals focus on their phones while behind the wheel, distracted driving is increasingly emerging as a primary cause of accidents.
Speeding accounts for 29% of all traffic fatalities.
Running traffic lights or stop signs causes approximately 45% of car accidents at intersections in the United States, primarily because drivers ignore red lights or stop signs.
Waymo’s recent safety data shows notable enhancements in safety when compared to human-driven vehicles.
Reduced Crash Rates: Waymo's vehicles have significantly lower crash rates than human-driven vehicles, including those equipped with advanced driver-assistance systems (ADAS).
85% reduction in crash rates involving any injury
57% reduction in police-reported crash rates
Fewer Serious Incidents: Waymo vehicles have experienced far fewer serious collisions than would be expected from human drivers.
A study conducted by Swiss Re, a leading reinsurer, analyzed liability claims related to collisions caused by 25.3 million miles of autonomous Waymo vehicles. The study found that compared to human drivers, the Waymo Driver achieved an 88% reduction in property damage claims and a 92% decrease in bodily injury claims.
Let’s look at the safety benefits more closely.
Save 30,000 lives a year!
One of the most significant benefits of autonomous vehicles (AVs) is their potential to save tens of thousands of lives annually. Road accidents have become so prevalent that nearly everyone in the country knows a friend or relative who has been affected. This unfortunate reality is often overlooked. When considering the statistics, it is staggering to realize that the average person will witness over three million deaths from road accidents in their lifetime, which amounts to nearly 1% of the population. Tragically, fatalities from road accidents disproportionately impact younger individuals aged 15 to 29, with many of these incidents involving alcohol.
Prevent more than 3 million injuries from
auto accidents per year!
According to the National Safety Council (NSC), about 4.24 million motor vehicle injuries required medical attention in 2023. This number includes all injuries needing medical care, from minor injuries treated in emergency rooms or urgent care facilities to more serious injuries requiring hospitalization. To put this in perspective, it averages approximately 11,000 auto accident injuries daily.
In 2023, approximately 159,000 serious injuries were reported due to motor vehicle crashes. The NSC defines "serious injuries" as requiring medical consultation or treatment beyond initial emergency care.
Reduce the cost of accidents!
Auto accidents incur substantial costs. According to the NSC, the estimated total cost of motor vehicle accidents in 2023 was $522.2 billion, which includes medical expenses, wage and productivity losses, property damage, and administrative costs. This breaks down to approximately $1.43 billion daily in overall costs to society due to motor vehicle accidents.
AVs Will Reduce Transportation Costs
Although safety is the primary advantage of autonomous vehicles, initial adoption may heavily rely on other incentives. Fortunately, substantial cost savings and increased convenience can serve as additional factors for individuals considering the switch to autonomous vehicles.
Transportation is the second-highest expense for American families, only behind housing costs. Families in the United States spend an average of $9,826 yearly, or about $819 monthly, on transportation, making up roughly 12% of the average household income. The most significant portion of this expense is car payments, averaging around $4,523. Insurance costs follow, totaling approximately $1,575 annually, while fuel expenses are estimated at $1,200 annually.
Significantly decrease ridesharing costs!
According to my estimates, autonomous ridehailing services (ARS) will eventually cost nearly half as much as traditional ridesharing by eliminating driver-related expenses. Most of these cost savings will be passed on to customers, promoting the adoption and market share of ARS. As ARS replaces ridesharing, current ridesharing customers will experience significant cost savings.
Let's consider a typical Uber customer who travels 2,000 miles yearly, roughly 40 miles per week, using Uber. At the current rate of $3 per mile, they would spend about $6,000 a year. However, if ARS were priced at $1.50 per mile, it would cut the cost in half, resulting in annual savings of $3,000.
Reduce the cost of owning a car
The introduction of Automated Ridehailing Services (ARS) can potentially reduce transportation costs in the U.S. by minimizing the need for many cars. However, it is essential to note that ARS will not eliminate or re-place most car ownership. For instance, individuals residing in rural areas still require their pickups, and suburban families may feel uncomfortable without at least one car. Nonetheless, those with multiple vehicles might not need as many if ARS becomes reliable and affordable. Additionally, individuals in cities with exorbitant parking costs could save money by giving up their cars and opting for inexpensive ARS.
This is where people can start saving on transportation costs by reducing or eliminating the number of cars they own. Many urban car owners can save substantially by not owning a car. The high cost of parking in urban areas often dissuades people from car ownership. For instance, the average monthly parking cost in New York City is $600, while in Boston, it is $300. Additionally, if individuals use their cars to commute to work or school, they may need to pay for parking at both ends. Moreover, urban areas tend to have denser development, resulting in shorter travel distances and reducing the necessity of car ownership. In such cases, the cost savings can be significant. Owning a car in the city can cost around $7,000 per year, plus parking fees ranging from $500 to $1,000 per month, totaling $13,000 to $19,000 per year. By replacing this with 3,000 miles of ARS commuting (at $1.50 per mile) and renting a car a few times a year for trips outside the city, individuals could save over $7,000 annually. Surprisingly, more than 50% of urban households own more than one car, making them prime candidates for savings.
Benefits to Low-Income Families
The lower cost and increased accessibility of Automated Ridehailing Services (ARS) present unique advantages for low-income families. These families often face financial constraints that prevent them from purchasing and maintaining a car, thus limiting their options and forcing them to reside near their workplace or school. This, in turn, restricts their job prospects and often necessitates re-siding in more expensive housing.
However, with the emergence of affordable and convenient ARS, low-income families will gain greater flexibility without needing a car. This newfound mobility will open more opportunities for employment and education. They can relocate to areas outside urban regions where housing is more affordable, allowing them to maximize the value of their housing expenses.
AVs Can Create More Productive Time
Another significant advantage of autonomous vehicles – both ARS and PAVs -- is the potential to create more productive time. Time is a valuable resource, and most individuals feel a perpetual shortage. Driving time, especially when stuck in traffic, is largely unproductive. Those who spend substantial time commuting to work, school, or other destinations can replace this wasted time with activities that contribute to their personal enjoyment or professional development.
Let's examine the broader scope of the opportunity to replace driving time and the time savings from avoiding traffic congestion and parking-related delays.
Time is a precious commodity. Almost nobody has had enough of it. Most people wish they had more. Moreover, most driving time is wasted, especially in traffic. Those who spend so much time commuting to work, school, or other places can replace their wasted time with more productive time.
Let’s look at the opportunity to replace driving time and time savings from traffic jams and parking.
Reduce Driving Time
Based on the latest estimates from the U.S. Census Bureau's 2021 American Community Survey, the average commute time in the United States is 25.6 minutes each way, totaling almost an hour per day. The average American spends 1 hour and 4 minutes driving and commuting daily, considering their commute to work and any additional driving throughout the day. Approximately 10% of workers have commutes that exceed one hour each way. It is worth noting that since the COVID pandemic, the number of people working from home increased to 9.7% in 2021, eliminating commuting time for them.
According to the 2020-2021 American Driving Survey conducted by the AAA Foundation for Traffic Safety, drivers in the U.S. spend an average of 61.3 minutes per day behind the wheel. This marks a significant increase from the 50.6 minutes reported in 2020, which was influenced by the pandemic. In total, the average person spends over 350 hours per year driving.
The value of this time savings can vary. Assuming an hourly rate of $10 to $20, the 350 hours would be worth $3,500 to $7,000 per year, but its worth goes beyond monetary value for many individuals. Consider the significance of an additional hour or more daily to 4.3 million people.
When individuals no longer need to drive and become autonomous vehicle passengers, they can replace wasted driving time with more productive work or leisure activities.
Reduce Congestion and Traffic Jams
Congestion and traffic jams lead to a waste of drivers' time. Autonomous driving has the potential to reduce traffic congestion in several ways. Firstly, it can enhance the throughput of road systems by synchronizing traffic more efficiently. Traffic congestion occurs on highways when a single car slows down, causing a ripple effect of slowing down for all the following vehicles until congestion forms. However, if all vehicles are coordinated and travel simultaneously at a consistent speed, such as 70 miles per hour, there would be increased throughput with reduced congestion. Autonomous coordination of traffic passing through intersections can further improve the efficient utilization of roads, as fewer cars would be halted at traffic lights when no other traffic is passing through.
Decreased traffic accidents resulting from autonomous driving will also contribute to reduced congestion. Accidents are a significant cause of traffic congestion, and congestion, especially sudden congestion, can also lead to accidents.
Selfish driver behavior is another significant cause of traffic jams. When drivers maintain proper spacing and allow free movement between highway lanes, traffic flows smoothly regardless of the number of cars present. However, there is an additional benefit to vehicles traveling at regularly spaced intervals and communicating with each other. This allows for more cars to be on the highway simultaneously because they would require less space. According to a study conducted by Columbia University, if all cars on the highway were autonomous and communicating with each other at 75 mph, the highway capacity measured in vehicles per hour per lane could increase to nearly 12,000 from the current 3,000. This improvement is possible because the safe distance between autonomous vehicles traveling at 75 mph could be reduced to around 16 feet. In contrast, human-operated vehicles would require over 115 feet for safe stopping at the same speed.
Less Driving for Errands
The introduction of autonomous home delivery will significantly reduce the cost of driver-based deliveries. This cost reduction is expected to lead to a higher demand for home delivery, especially when it becomes free for consumers. So, what is the estimated benefit of this potential savings?
According to a study conducted by the U.S. Bureau of Transportation, the average American adult typically makes around 2.5 trips per day for errands, with approximately 1.5 of these trips made by car. On average, the driving time for these errands amounts to about 25 minutes per day. It is important to note that these estimates can vary based on factors such as an individual's location, lifestyle, and transportation options. For instance, individuals residing in urban areas might make fewer daily trips but spend more time driving due to traffic congestion. In comparison, those in rural areas may make more daily trips but have shorter driving times due to less traffic.
Let's consider a hypothetical scenario where increased usage of low-cost or free autonomous home delivery reduces the number of errands by one-third. This would save over 180 trips annually (equivalent to 0.5 daily) and 48 hours yearly. With all this extra free time, numerous opportunities for more productive utilization will undoubtedly exist.
AVs Will Reduce The Need for Parking
Autonomous vehicles will minimize the time required to locate parking spaces. Instead of parking and waiting, AVs can return to their starting point or an alternative location. They can drop off passengers directly at their destinations' front doors, park in more cost-effective areas, or return home, and then come back to pick up passengers when summoned. Drivers will no longer have to endure the frustration and wasted time searching for parking. With an AV, the distance to a parking space becomes inconsequential.
Over 40,000 garages and parking lots in the United States contribute to an estimated $100 billion parking industry, with drivers ultimately bearing the associated costs.
The reduced demand for parking has the potential to transform urban areas significantly. Interestingly, in the United States, there are three non-residential parking spaces for every car. Local zoning regulations determine the parking spaces required to meet peak demand. Cities can undergo significant transformations with the diminished need for parking lots and garages. Buildings can be designed to occupy less land due to reduced requirements for adjacent parking. Former parking lots can be repurposed as green spaces and parks. City planners are already envisioning how this additional space can be utilized positively.
AVs Can Provide More Convenient Travel Alternatives
ARS offers more than just cost reduction in ridesharing; it also provides additional convenient travel alternatives. One such benefit is its affordability to individuals relying on public transportation. Although this may not be seen as advantageous by those responsible for public transit or its advocates, it can significantly benefit public transportation users.
Autonomous vehicles (AVs) and ARS will provide more convenient alternatives in various scenarios. For medium-distance trips, people can opt for AVs that take them door-to-door instead of flying, eliminating the hassle of getting to airports, parking, going through security, and dealing with the airport process. Economically feasible alternatives, such as avoiding driving to airports or sporting events, will become more accessible with AVs and ARS.
When comparing the cost of flying to using ARS for relatively short distances, such as 500 miles, the costs can be relatively similar, although air travel costs can vary significantly. Based on assumptions, the round-trip cost per person for a trip from Dallas to Austin is approximately $670 by air and roughly $600 by ARS, assuming ARS services are available at both locations, eliminating the need for a return charge. Regarding a trip from NYC to DC, airfare is cheaper at $535 compared to $690 by ARS. However, when multiple people travel together, the cost advantage significantly favors ARS, as there is no additional charge per person as with airfare.
Furthermore, using ARS may offer increased convenience, including fewer delays and the avoidance of taxi or Uber connections, adding to the overall appeal of the service.
AVs Will Enable Mobility for More People
AVs will bring newfound independence in travel for millions of individuals who are disabled and unable to drive, older adults who cannot or choose not to drive, and children who are too young to obtain a driver's license. While ridesharing already provides some alternatives for these populations, the emergence of ARS will significantly lower costs and expand opportunities.
Mobility for Those with Disabilities
For individuals with disabilities, AVs will not entirely solve the mobility challenge, but they will provide newfound mobility for many. According to the CDC, approximately 25.7% of adults in the United States, totaling 61 million people, report living with at least one disability. Among adults, around 12% have mobility disabilities that make walking difficult, 7% face disabilities that hinder running errands, and nearly 5% experience vision difficulties even with corrective eyewear.
Autonomous vehicles can substantially enhance the quality of life for individuals with disabilities and create avenues for better employment opportunities. Those with disabilities often earn significantly lower wages, and the availability of lower-cost autonomous transportation can make a substantial difference.
ARS will significantly decrease the expenses associated with specialty rides for individuals with disabilities. For instance, the Massachusetts Bay Transportation Authority (MBTA) operates The Ride, a paratransit program catering to people with physical, mental, or cognitive disabilities who cannot use the MBTA's fixed-route bus, train, or ferry services. This service fulfills the requirements outlined in the Americans with Disabilities Act of 1990.
Specialty transportation services like The Ride incur substantial costs. The MBTA spends approximately $120 million annually on The Ride, including $50 million for driver expenses, to serve the greater Boston area. The service is vital in enabling independent travel for individuals with disabilities, providing over 1.2 million rides to more than 100,000 riders in 2021. The average cost per trip for The Ride is around $100. By partnering with an ARS service for most riders, the Boston MBTA has the potential to save over $100 million per year.
Mobility for Children
Autonomous vehicles promise to offer mobility solutions for individuals who are too young to drive themselves. Parents could find this technology beneficial for transporting their children to various activities, such as school, soccer practice, or weekend outings like the movies. However, it may take some time for parents to feel completely at ease with the idea, particularly for younger children. The appropriate age for children to use autonomous vehicles will likely be a topic of debate.
Parenting logistics present challenges as kids are overscheduled, and parents find themselves overwhelmed trying to get them to their destinations. Many parents are turning to ridesharing services to handle this task, but popular platforms like Uber and Lyft have strict policies against picking up unaccompanied riders under 18. Some parents defy these rules and allow their children to use these services, sometimes using tracking apps to monitor their journey.
Waymo has been exploring introducing a “Waymo Teen” service, which aims to provide autonomous rides for teenagers aged 14 to 17. This could be a considerable advantage for teens and their parents who must chauffeur them back and forth to school, activities, and events.
Mobility for Older People
Autonomous vehicles offer mobility solutions not only for the younger generation but also for the elderly. Many elderly individuals either cannot, should not, or choose not to drive. Unlike traditional driving, where a specific age determines driving privileges, older individuals' decisions can be more complex, leading some to continue driving when it might not be safe due to the lack of viable alternatives.
As of the middle of 2023, an estimated 20 million people in the United States are 80 years old or older. This represents 5.6% of the total U.S. population. People 80 and older are expected to grow to 25.8 million by 2030 and 36.8 million by 2050.
AVs Will Reduce Shipping Costs
Autonomous long-haul trucking holds the potential for significant cost savings in shipping. These autonomous trucks will be responsible for driving almost the entire trip from one highway terminal to another. Upon arrival at a terminal, the autonomous semi-truck will disconnect from the trailer, and a human-driven semi will transport the trailer to its destination. This innovative system will drastically reduce the need for human drivers, accounting for approximately 40% of the total shipping cost.
The combination of these benefits, such as 40 %+ lower costs and 35% faster deliveries, will likely lead to lower prices for consumers as these savings are passed on to them. Autonomous long-haul trucking has the potential to revolutionize the shipping industry, streamlining operations, reducing expenses, and providing better services to both businesses and consumers alike.
AVs Can Make Same-Day Home Delivery Cost-Effective!
Autonomous home delivery is set to revolutionize the same-day delivery of food, groceries, and related items. While certain segments, like pizza delivery, have been well-served by delivery drivers for some time, newer services like Uber Eats and DoorDash are making strides in delivering meals and groceries. However, the delivery service and restaurants are still struggling to make these ventures profitable.
The introduction of autonomous home delivery is expected to make home delivery economically viable. The elimination of delivery drivers will lead to a significant reduction in delivery costs, cutting them by about two-thirds. Although there will be an initial need for investment in a new fleet of autonomous delivery vehicles, these vehicles will be less expensive than those currently used for delivery. They can be designed to be smaller, equipped with less complex autonomous driving capabilities, and made from cheaper materials, as they won't need to prioritize the safety of human occupants.
In summary, autonomous home delivery has the potential to reshape the landscape of food and grocery delivery, making it economically feasible, efficient, and less reliant on human interaction, which aligns well with the evolving preferences of customers in the post-pandemic world.
AVs May More Efficiently Use Energy
The impact of autonomous vehicles (AVs) on reducing energy use is a complex issue with varying factors. To assess whether AVs will lead to a decrease in energy consumption, we need to consider two aspects: first, the potential for AVs to provide more efficient transportation, resulting in fewer miles driven by vehicles, and second, the role of AVs in driving the adoption of electric vehicles (EVs), which could further reduce energy consumption.
Regarding the efficiency of AVs in providing transportation, there are conflicting arguments. The Energy Information Administration estimates that by 2050, AVs could reduce fuel consumption by 44% for passenger vehicles and 18% for trucks. This assumes that AVs can optimize driving routes and reduce the total miles driven. However, some studies suggest that the convenience and affordability of AVs could lead to increased travel, particularly for populations like the elderly, disabled, and young individuals who were previously limited in their mobility. More accessible transportation options might lead to slightly worse fuel consumption if total vehicle miles traveled increase significantly.
On the other hand, AVs have the potential to encourage the use of appropriately sized vehicles, as people could order smaller and lighter vehicles for their specific needs rather than owning larger ones to accommodate occasional requirements for extra space. Additionally, vehicle designs might shift towards lighter-weight materials once AVs demonstrate their safety, reducing energy demands.
Summary
The emergence of autonomous vehicles (AVs) will bring tremendous economic and social benefits that make their widespread adoption seem inevitable. AVs have the potential to save tens of thousands of lives in the US annually by avoiding most auto accidents caused by human error. They can also prevent millions of serious injuries annually and eliminate over $100 billion in accident costs. The safety impact of AVs will be unparalleled.
AVs will significantly reduce transportation costs, which rank as the second-highest expense for families. Automated ridehailing services (ARS) enabled by AVs will cut ridesharing costs in half compared to services with human drivers. AVs will reduce the need for personal car ownership, especially in urban areas. This will provide substantial financial relief for lower-income families with difficulty affording cars. AVs will also create affordable mobility options for children, older adults, and people with disabilities.
AVs will free up valuable time for passengers, providing over 300 additional non-driving hours each year for more productive activities. They will reduce traffic congestion and wasted time finding parking. Autonomous home delivery services will make same-day grocery and meal delivery economically feasible. Autonomous trucks can cut shipping costs by 40 %+ and accelerate deliveries.
AVs may reduce total energy usage through more optimized transportation. However, increased travel accessibility could offset these gains. AVs will undoubtedly accelerate the adoption of electric vehicles, leading to environmental benefits. However, the overall energy impact remains uncertain.
In summary, AVs will bring transformative social and economic changes. Their safety and accessibility benefits appear likely to make their prevalence inevitable. Despite uncertainties and other impacts, the positives outweigh any potential drawbacks. The advent of AVs promises to reshape transportation and society.
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