I recently covered Pony AI ( PONY ), which has developed autonomous vehicle (AV) technology at a far lower cost than Waymo. The economics of robotaxis are complex, given that the average US$12 fare needs to cover theExperience is difficult to learn. After 30 plus years of critically analyzing the nuts and bolts of businesses as diverse as airlines, oil, retail, mining to fintech and ecommerce plus the macro, monetary and political drivers. I continue to immensely enjoy learning and applying my experience to ...

Core Insights - Consumer adoption of autonomous vehicles may be less challenging than anticipated, driven by real-world utility and convenience, with integration into existing platforms like Uber and Lyft facilitating the transition to a service-based mobility model [1][12][14] - The concept of "autonomy as a service" (AaaS) is gaining traction, with companies like May Mobility and Uber collaborating to implement scalable, human-free autonomous mobility solutions, marking a significant shift from research and development to practical application [3][5][6] Group 1: Technological Innovations - Multi-policy decision making (MPDM) enables autonomous systems to simulate thousands of potential outcomes in real time, enhancing safety and adaptability by considering multiple future scenarios rather than relying solely on extensive data training [2][9] - The rise of "driver-out" vehicles signifies a major advancement towards fully autonomous logistics and mobility systems, as evidenced by May Mobility's partnership with Uber to deploy thousands of vehicles equipped with autonomous technology [6][10] Group 2: Economic Implications - The economics of autonomy are compelling for ride-hailing platforms, as removing driver-associated costs can significantly increase profit margins and reduce variability caused by labor shortages and human error [7][10] - May Mobility's collaboration with Toyota allows for a robust supply of vehicles powered by its technology, while leveraging Uber and Lyft's platforms helps meet demand without the need for new app downloads [11] Group 3: Consumer Behavior and Trust - Evidence suggests that consumer willingness to adopt autonomous vehicles is high, particularly when these vehicles solve real-world problems and enhance convenience [12][14] - Historical shifts in consumer behavior, such as the acceptance of ride-sharing services, indicate that public trust in autonomous vehicles can be built through demonstrated utility [13][14]