Finance - Ride Sharing, Self-Driving Cars Upend Traditional Auto Industry
One Person, One Car: That's the been the backbone of the auto industry since the Model T rolled off of production lines. But new autonomous driving technologies and ride sharing are threatening to dent that century-old business model.
"On the one hand these new technologies will spell the demise of the traditional car industry," Cadillac president Johan de Nysschen told the blog Venture Beat. "But they are also an opportunity," he continued, "as more people start using car services, they need automobiles."
As ride-sharing services permeate more economies, Cadillac's parent company General Motors wants as much of that pie as it can get. GM recently sunk US$500 Million into the ride sharing service Lyft; and earlier this month, the GM mobility division partners with Lyft's rival Uber on a new pilot program in San Francisco that will let Uber drivers rent cars by the week for both work and personal use.
Beyond that, GM debuted its own debuted its car sharing program "Maven" last January in ten US cities, as an alternative to car ownership for its customers - drivers have already logged more than 37 million kilometers.