As the country builds infrastructure for autonomous driving, this untapped market will see an influx of investors. California’s new laws allowing the testing of autonomous vehicles on public roads have prompted a surge in interest. Hangzhou in China announced recently that they are in the process of building a route specifically for these automobiles.
Companies in Hangzhou, China, Using Autonomous Cars
Alibaba’s main headquarters is located in the city. China’s biggest online retailer released a recent statement stating that they have been conducting autonomous driving testing. The company claims that it is almost ready to begin open-road testing.
No surprise, China’s search giant Baidu, as well as gaming titan Tencent, have also expressed interest in entering the self-driving car industry. Smaller startups will be a challenge to these tech giants. The giants have used their considerable resources to hire or acquire these companies. The giants also plan to use their prototypes of automobiles and artificial intelligence developments to support their projects.
The Benefits of Startups Investing in Autonomous Cars
The tech giants and startup companies will need to hire many employees to form their autonomous driving teams. Alibaba’s initial goal is fifty engineers and a large number of support staff. As they compete with the tech giants, startups will employ Chinese citizens.
After the parties involved have perfected autonomous cars, entrepreneurs will be sure to enter this market. You could start a business of delivery. This will be easier than it is now. The entrepreneur won’t need as many employees since drivers will no longer be required.
You could invest in E-hailing. To acquire autonomous cars, all one needs is an app that works and some capital. Tencent has already developed a system of autonomous driving for these cars.
Mobility data will be needed before autonomous cars are a common sight on our roads. Companies like Moveco have been pioneers when it comes to the monetization and use of data. Drivers are rewarded for providing data about their cars. They collect data on their users’ driving habits, such as average speeds, mileage, vehicle conditions, traffic patterns, and road conditions.
Then, they share the information with other mobility companies. They pay their users in MOV tokens (a digital currency) for the info. Users can redeem MOV tokens at partners such as Shell, Grab, and others.
Improve existing factors
The current generation of Asian entrepreneurs would benefit from a greater understanding of autonomous driving.
- Improve their Services or Products: For the logistics industry, autonomous cars offer an opportunity to solve customer problems. The optimal route will be plotted by autonomous cars using geo-location metrics. This will improve the efficiency of businesses and delivery times.
- Reduce costs: Autonomous cars require less maintenance resources than other modes of transportation. The entrepreneur will have enough money to explore new income-generating opportunities. The entrepreneur will save a lot of money on other expenses, such as storage and remuneration.
- Increase Productivity: Autonomous cars will help your business thrive. Your business’s production and operations will be optimized.
These factors show how important autonomous cars are to business. The business aspects will improve dramatically, while the feared ones, such as costs, are limited. This is why it’s a no-brainer for more entrepreneurs to enter this market while there’s time.