RSG031: Zack Kanter On Why Self-Driving Cars Are Coming Faster Than You Think

Intro

• Recently returned from San Francisco!
• Topic today is self-driving cars with Zack Kanter
• Zack is a serial entrepreneur and the CEO of an auto parts company called Pro Forge
• Wrote a viral article about how Uber’s self driving cars will destroy 10 million jobs by 2025
• Special thanks to our sponsor, Stride Health – Even if health care isn’t on your radar right now, it could soon be. Check out Stride Health today and sign up before the end of the year.

Interview with Zack Kanter

• CEO of Pro Forge and serial entrepreneur, futurist
• Wrote article on how Uber’s self-driving cars will destroy jobs by 2025
• Most people look at autonomous cars as a far-off, distant event
• While true to a degree, Zack thinks self-driving cars are coming a lot sooner than anticipated
• Won’t be regular people buying self-driving cars, but rather companies like Uber and fleet owners
• Gave a TED talk on self-driving cars

What’s Changed?

• Easy to predict things that won’t happen than what things will happen
• Tesla released its self-driving feature since the article published
• Cars with steering wheels and cars without – societal shifts won’t happen until the steering wheel is removed
• Separate approaches between Tesla and Google
• Benefit for Uber will be when cars are 100% self-driving
• Google has more capital to spend and make driverless car possible

Acceptance of Self-Driving Cars

• Not inconceivable for a robot to be a better driver than the average person
• However, safety might not be the greatest motivator for people to get a self-driving car
• Economic incentive is the best reason for self-driving cars
• Safety and productivity are secondary incentives
• Cars already taking away the ability to respond to disasters from humans

Dilemmas Associated with Self-Driving Cars

• Do cars need to be programmed to kill?
• Difficult to determine if cars should have the ability to choose who gets hurt in an accident, or if that can be left to drivers to take over themselves
• Those decisions aren’t being made right now – manufacturers are protecting the driver/occupant

Uber’s Participation in the Self-Driving Car Revolution

• Could be Uber that leads the revolution, or a new company we haven’t even thought of
• Uber controls the end-user, which puts it in a better position than most companies
• Uber’s passenger experience is better, but reduced friction also makes the experience better as well
• Behind the scenes, many people are likely working on this topic, but Uber is one of the best-positioned to take advantage of self-driving cars
• Doesn’t mean that other companies (Hertz, etc.) wouldn’t take advantage of this technology

Business Model Shift

• Is this going to completely change Uber’s business model?
• Uber doesn’t currently hold assets
• Uber will become a fleet owner, if they decide to get into this business
• Self-driving cars are easier to maintain than non-self-driving cars

Opportunities with Self-Driving Cars

• Uber still going to need drivers, even if they’re pursuing driverless cars
• Self-driving cars are an economic benefit to Uber – no drivers, no people to sue, no people to retire
• People spend $9,000 a year to own and operate their cars – with Uber and other rideshares, people are freed up to not own a car
• Frees up extra spending money, which could drive the economy in other ways

The Future of Cars

• In 10 years, hard to imagine all the changes to come
• Over 50% of LA is dedicated to parking (estimated)
• Real estate will look different – no parking garages, on-street parking
• Quieter flow of traffic
• Basically, it will be pretty cool – sounds utopian
• Contact Zack on Twitter

Outro

• Technology always changing
• Even if you don’t agree with self-driving cars, it’s likely on its way and you can embrace this
• New technology and new opportunities will be created with self-driving cars
• As more people free up money they previously spent maintaining cars, there will be new opportunities for entrepreneurs to market to this new capital
• Sign up for the Maximum Ridesharing Profits course here
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• Check out the full transcript here
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Show Notes

• Uber and the American Worker
• Uber Considers Steering Drivers to Vocational Training as Cars Go Autonomous
• Contact Zack on Twitter
• Why Self-Driving Cars Must be Programmed to Kill
• Maximum Ridesharing Profits
• Connect with me on Twitter
• Check out Stride Health – it’s free to use!
• Get $20 off your first service with YourMechanic with the code ‘RSG15‘

Stride Health

This episode was sponsored by Stride Health, they’re a company that connects self employed workers with health coverage and health care for free! And even if you already have health insurance, once you sign up, you’ll get access to a personal advisor who you can call to get help with all your health care decisions and more.  Sign up here to get free access today!