Strategy Case: Turning Self-Driving Technology into a Viable Business

How would you turn autonomous vehicle technology into a business? Say what the business would be, who would pay for it and how you would grow it. ```hint Compare where to start List the different ways self-driving vehicles could earn money, then judge each one on how soon the technology can serve it safely and who would pay, before you commit to one. ``` ### Clarifying Questions - Do we already have a self-driving system that works without a driver in some conditions, or does the business also have to fund and build the technology? - Should the plan build on our own assets, such as our maps and any existing self-driving program, or assume we start fresh? - Which matters more: revenue within a few years, or a strong position in a market that may take a decade to mature? - Is the first region or regulatory environment ours to choose? ### What a Strong Answer Covers - A map of the possible businesses and a reasoned choice of where to start, with the rejected alternatives explained. - The paying customer, the value proposition and the drivers of unit economics. - A phased plan from a first market to scale, tied to what the technology can do safely at each stage. - Success metrics, including safety guardrails. - Risks such as safety incidents, regulation, public trust, capital needs and competition. ### Follow-up Questions - A serious crash involving one of your vehicles makes national news in the first year. What do you do in the following week, and what changes in the plan? - If the cost per mile of a driverless vehicle stays above a human driver's for much longer than you planned, how does the strategy change? - Would you build and operate your own fleet or license the driving system to others, and what evidence would make you change that call?