MIT Sloan Management Review Article on Why ‘Autos Plus Tech' is the Best Path for Automated Vehicles

For more than a century, the business of moving people has been dominated by the automobile, with major automakers manufacturing vehicles and selling them to consumers. It has always been a capital-intensive business with extremely low margins. Now this business is on the cusp of dramatic technological change. A new vision has emerged where mobility is a service, enabled by automated vehicles (AVs) that are accessed on demand and operate without the need for human drivers. The new entrants — which include tech giants Google and Apple, ride-hailing pioneers Uber and Lyft, and suppliers such as Nvidia and Mobileye — have technological expertise, ready access to engineering talent, and deep venture-capital pockets on their side. Many observers, including prominent Wall Street analysts, think tech challengers from Silicon Valley will have the upper hand over auto companies.