Uber Will Not Kill Car Ownership

The buzz surrounding self-driving cars has reached a fever pitch with news this week of federal regulations to ensure passenger safety. This alternate automotive landscape is fast approaching, but what does the future of car ownership really look like?

This post was originally published on Fortune in August:

By the end of the month, your Uber journey could take place in a fully autonomous Volvo XC90 if you live in Pittsburgh thanks to a $300 million partnership that the automaker and ridesharing company recently announced. This will be the first interaction between consumers and true self-driving technology, and it is a big deal. Uber is rapidly working towards this future — a world in which Uber CEO Travis Kalanick says consumers will all be carpooling and ownership will be on life support.

While ride-shares will certainly play a part in the future, car ownership isn’t going anywhere. That’s because the same trends that will make car sharing more affordable will also make ownership significantly more affordable and even profitable.

Ride-sharing is not killing car ownership, but complementing it. Cars are getting smarter and more connected, costs to own are expected to fall and new models of ownership will emerge.

Much like the CEOs of Uber and Lyft have an interest in promoting an end to individual ownership, as CEO of Beepi, an online marketplace to buy and sell cars, I believe in the future of ownership. But the trends speak for themselves.

Several factors could bring down the cost of ownership — among them, the rise of electric cars, lower energy costs and developments in autonomous technology. According to the consulting firm IHS, nearly 76 million autonomous vehicles will be sold globally between now and 2035. And a Goldman Sachsreport shows that with increasing reliance on software and electronics, these vehicles will consist of fewer parts, going from 30,000 to 11,000 components, leading manufacturing costs to go down.

To read more, check out the full article on Fortune:

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